IBM CEO Ginni Rometty also cool on EMC/Dell IBM's CEO Ginni Rometty has offered a guarded-but-mostly-negative opinion on Dell's acquisition of EMC. Speaking at the Fortune Most Powerful Women event, Rometty said she's noted the deal but that IBM sets its strategy according to what IBM thinks is right, and not in response to competitors' activity. IBM won't be changing …
The real irony is your poor comprehension, I guess you never made it past the headline because if you did you would've read:-
"IBM will use Virtustream’s cloud management platform (CMP) software, xStream, as an 'OPTION' to deliver SAP and SAP HANA environments on SoftLayer ... In addition, Virtustream will also utilize SoftLayer data centers and cloud infrastructure to expand its own Infrastructure-as-a-Service business service beyond current capacities in the US and UK markets in which it currently operates.
That's precisely what most of these other businesses seem to have forgotten. The publicly-traded corporations have been bailing from the hardware business because falling margins mean they can't hit their investors return expectations. Having gone private, Dell don't really have to worry about that and their margins are going to look considerably healthier when they're one of the few hardware suppliers left standing.
This basic tenet does appear to confuse so many Cloud evangelists.
Hats off the the CEO/CIO/CFOs who will allow their critical apps to run on a bunch of 1U pizza box servers, out there in NuCloudLand . "Not on my watch" seems the stock reply, to the legions of CloudReps queuing to propose porting the large Corporations key business apps to the Cloud. Cloud CuckooLand.
Except that cloud vendors aren't running AWS or Azure on a bunch of Dell boxes. Dell aren't gonna pick up a major amount of business from the big players in cloud, so yes, it's generally a threat to them - how much of a threat is almost certainly massively overstated, since there's just a lot of things the cloud offers no serious advantage for, but a company like Dell (which is basically just a distributor of commodity hardware) hasn't really got much hope of picking up big sales to MS or Amazon.
"IBM's CEO Ginni Rometty has offered a guarded-but-mostly-negative opinion on Dell's acquisition of EMC."
I can't help thinking "Well she would say that, wouldn't she". It's not like she'll stand up at a big event and say, "Oh, fuck, they did us over good with that acquisition; and they'll be better placed to eat more of our lunch as a result. But never mind our $20 EPS plan is all hunky dory so lets continue with the off shoring and shafting our dwindling customer base".
It would be interesting to read more detailed analysis on the VMWare side of the EMC acquision. Most commentators seem to be concentrating on Dell selling it.
What she carefully choses to ignore (because the last thing you want to do is encourage a competitor and tell the market it's a good idea) is that it's not the portion of hardware revenue that counts, it's the portion of wallet share at clients that can be incrementally captured by bundling incremental software into a deal where you have locked in revenue due to unremovable mainframes.
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