A few of my colleagues are frothing at the mouth over Dell hiring amid all the layoffs and changes (or more like cuts) in benefits. They can't believe it's happening. Franky, there's nothing surprising to me there. Dell wanted to get rid of the highest paid (non-management) employees and it did. Now it needs somebody cheaper to do that job, so they're getting them. As simple as that. I'm not saying it's right, but it's not surprising or unbelievable.
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Storage is only flat because its supported by VxRail, that's a server product that has been slipped into the storage portfolio to cover that fact that legacy (Read EMC) storage is in decline. Remember it's only vSAN on Poweredge with a services wrapper.
Imagine if they corrected that fudge, ISG would have a massive jump. I'm pretty sure Michael has a reason for having that accounting anomaly.
EMC cost 20% more OPEX to generate 17% more margin. That's a net loss. At some point Operations will figurer that out. Storage is flat currently (ACQ of new logos not EMC strength). So cut some OPEX and still keep the margin. Pretty logical math
LONG term strategy
You get what you pay for. HP is 1/3 the price of Dell stock so.... does that mean that Dell is overvalued given EMC is dismantled