EMC brings big, lucrative government contracts

People seem to be completely forgetting about government contracts, infrastructure, etc. They're big, lumbering dinosaurs that are a continuous source of income -- not at all on the leading edge. Do they care about the latest innovations in storage, flash, etc? Nope. They want predictability and an ongoing relationship w/ a vendor they can trust. MD definitely acquired EMC to get into that business. Guaranteed repeat income on a massive scale, including tons of military.

Grandma isn't going to keep the company going with her purchase of a new computer every 20 years, plus little doo-dads to go with it. Gamers aren't going to sustain the behemoth, no matter how flush Daddy is with cash to buy them the latest Alienware gear. But government... Big Business... banks, military contractors, public utilities... all those massive enterprises... that's a bunch of customers that you don't want to miss!

Reposted from @PfL1y8H-4lea. On point, people seem to be forgetting this when getting on the EMC acquisition.

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As if Netapp, IBM, pure.. Dont rely on government orders..

Coming from the military. AIr Force I can confirm the hardware is outdated by years and they don't care. Food for thought.

So government contracts justify losing millions per quarter?

great write up. so EMC Sales > Dell Sales?

Did you hear about the bloodbath that occurred on Friday September 15th. WOW!!

The Symmetrix/ Vmax is not going anywhere for a long time.

Yes it is going away just like Amdahl computers vanished from the face of the earth because they could not compete against superior rivals. And with the engineers left I doubt VMAX next gen stands any chance..

It is funny to read all the time the argument about the fat government contracts from all companies which are going down quickly because they have obsolete or irrelevant product..

VMAX 3 years ago it took 11 bays for 1 petabyte now it only takes 1/2 bay for 1 petabyte - HUUUUGGGGEEEE difference

The Symmetrix/ Vmax is not going anywhere for a long time. There is already new ones being tested. If VMware was the lottery ticket why would Dell change the name to Dell EMC as a name instead of changing it to Dell VMware. People dont understand the cloud. You just dont throw data in the air it still needs to be stored. Rented space or not you still need storage to put the data in!

This is why Michael Dell has his nose up Trump's you know what.

Trump is the new King of the Contracts. Bow to your leader for the next 4 years.

How many mainframes are there now vs. 20 years ago?

Are they dying? Yes. Will they become extinct? No for awhile.

useless after 3 years? isnt that what people were saying about mainframes 20 yrs ago? you have no clue what you are talking about

Pure Storage and Infinidat aready are collecting the lion's share of new government contracts. With Trump in power there are less government money for legacy hardware which will be useless after 3 years.

Thank you very much for this post! This is the best analysis of what Dell - EMC merger means. Many people seem to forget that altough performance matters, big money spenders (big contracts) care about reliability and quality of support. Also, when MD paid all that money for the acquisition, majority of it was for VMware not specifically storage division. All those people wishing for demise of Dell EMC will not live long enough to see it. Stop the trash talk people. Dell EMC is not going anywhere. Will be around many years to come.

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EMC brings big, lucrative government contracts

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