Dell sheds Perot

dell perotThere's a lot of confusion over this announcement, so allow me to explain. Perot does about $3 billion for Dell. It drags no real Dell infrastructure. It’s a bit of an island.

In the new Dell/EMC world, Perot goes away. Dell gets $3 billion in cash. There's no impact to the core businesses, nor to the core services.

Dell/EMC continue to have a $12 billion services business, but now it’s all based around “infrastructure to modernize IT and secure and enable digital business”. In other words, support the stuff they sell. (Perot did lots of one-off things that didn’t drag any traditional Dell/EMC business).

SecureWorks, which Dell is taking public as we speak, remains whole. Apparently a lot of people thought that was tied to Perot, but it isn’t. More cash coming with that one.

Pivotal remains with Dell/EMC.

So in short, Perot didn’t fit. And shedding it has one massive incremental benefit — now Dell/EMC doesn’t compete with the other (much larger) systems integrators, which was always an issue. It will be much easier to court the likes of Accenture now that Dell has zero skin in the competitive landscape. HP (EDS) still faces that challenge, and IBM has its own internal SI. So, suddenly Dell looks like the safe pure-play infrastructure partner to be in that world.

Interesting.

hybrid data protection brief

Topics: EMC Dell Perot dell-emc