back to article Dell to spin out remaining VMware stake, cements Friends With Benefits status for at least five years

Dell will spin out its stake in VMware, and the two companies will continue to operate without major changes for at least five years. Indeed, they said they plan to deepen their collaboration. The proposed transaction has been pitched as delivering value for shareholders, both in the short term and once the two corporations …

  1. HmmmYes

    Mickey + Co were a huge blood sucking leech on the VMwares arse.

    1. Peter-Waterman1

      VMWare was the only thing that was innovative about Dell. Without them, it back to slinging Tin, which judging the way Cloud is growing will become harder and harder to do

  2. Franco Silver badge

    Would hope there are some changes because everyone I know says VMware support has got worse and worse throughout the Dell years.

    1. Anonymous Coward
      Anonymous Coward

      I hope it's a good change

      Internally, VMware has always treated Dell like shoe crud. Not sure about their relationship with legacy EMC, but to L-Dell and Dell EMC they have always acted like they were doing us a favor as they ignored our support escalations.

      I'm not sure whether this is going to make them more snooty, or more accountable. Time will tell...

      1. fredesmite2
        Mushroom

        Re: I hope it's a good change

        I interviewed at VMw years ago .. they were snobs . and certainly don't like grey beards. I was expecting someone to come in the room with a anal probe. Sometimes things work at to the best.

  3. SeanSmith

    Subtle Signal tha Interest rates are rising

    Paying down debt on the business with the Dell name and loading the debt into the other one. Is this a signal that Interest rates are going up?

    1. 2+2=5 Silver badge

      Re: Subtle Signal tha Interest rates are rising

      > Subtle Signal tha Interest rates are rising

      Possibly.

      Dell may foresee a post-pandemic rebound that makes credit slightly shorter in supply and if Dell has big chunks of debt about to fall due (and therefore in need of re-financing) then it would make sense.

      But I don't think that is the main driver for the decision - that's usually a tax break so there's probably one or two hidden away in there somewhere - just gotta find 'em! :-)

  4. Nick Ryan Silver badge

    Blah blah blah blah... both organisations profitable and could very easily continue to be profitable. Therefore this just feels like the investors/board/shareholders are cashing in on the transaction, particularly with the way that Dell debt is essentially being transferred to VMWare and with VMWare subsequently being ejected from Dell.

    Laptops will continue to sell as they are now a staple part of home working, add in monitors and to a much lessser degree other peripherals and Dell should continue being profitable in this space (assuming that they work out how to deliver laptops that don't have a 40% failure rate on delivery). Dell Enterprise products, on the other hand, seem to continue to be quite well regarded and are usually solid and stable and while the balance of infrastructure is changing, they should have less to fear than slow moving unwieldy behemoths such as Cisco who are just trying to bleed hardware owners dry with their move to a "rental" model as part of their core business. The move of the major cloud providers to designing and manufacturing their own hardware and often their own software stacks too is not a positive front on the enterprise business model, but there should always be a market for good and real hybrid solutions which can take advantage of both the benefits of cloud and local resources... rather than the braindead "stick absolutely everything onto someone else's servers and then wonder why it's suddenly slower and more expensive" which is a high risk for larger or more developed organisations - smaller organisations can benefit from a lot of cloud provisions though.

  5. Dan 55 Silver badge
    WTF?

    ‘Market does not appreciate hardware/software combo’ says Big Mike

    Big Mike needs to talk to Tim Apple to find out how his company struggles along in the market under the hardware/software albatross.

    1. JohnSheeran

      Re: ‘Market does not appreciate hardware/software combo’ says Big Mike

      That one is pretty easy. As much as I personally dislike Apple, they make products that work and that make their customers happy for a price they can accept.

      Dell/VMware makes a combo that is no more reliable than any other hardware/software combo, offer lousy support and make it extremely expensive. Of course we can really thank EMC's influence for the last part. VMware does their level best to make it work but Dell's reputation for, at times, shoddy hardware takes the cake.

  6. fredesmite2
    Angel

    rumor has it portions of Watson Healthcare

    now runs on VMware because RH Openstack was horrible

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