How likely is Dell to acquire 50 billion yuan of debt cloud computing from EMC?
It is understood that the core enterprise of Dell's IT service department is Perot Systems, which was founded by Ross Perot, the former US presidential candidate entrepreneur. The company's main business is to develop electronic medical records and some telemedicine applications, and was acquired by Dell in 2009.
$67 billion acquisition of EMC with heavy debt
Recently, an insider disclosed that Dell may sell its IT department to TNT, a Japanese telecommunications company, at a price of 3.5 billion dollars in the near future. However, at present, neither Dell nor TNT has commented on this matter, and the transaction details may be announced as soon as possible in recent days.
Last October, Dell announced that it would acquire EMC at a price of $33.15 per share and a total price of $67 billion. In terms of transaction volume, it is the largest M&A transaction in the global technology market. The deal was officially approved by the Federal Trade Commission last week, but it also led to Dell's heavy debts. The sale of the IT department this time is mainly intended to repay Dell's $50 billion debt.
This acquisition transaction is expected to be completed from May to October 2016. In addition, Michael, the founder of Dell, said that they still need to raise about 40 billion dollars for this transaction before the transaction is officially carried out. The sale of IT services sent an important signal to the debt market: Dell has the ability to pay off its debts quickly.
Amazon, Microsoft and Google rank top three
Michael Dell also joined the cloud computing war by acquiring EMC for US $67 billion, which also owns a controlling stake in the cloud computing company VMware. Ginni Rometty, CEO of IBM, acquired SoftLayer Technologies, a cloud computing company, as early as 2013. As a former sales executive of Oracle, Marc Benioff founded the customer relationship management giant Salesforce in 1999. As the company controls 18% of the market share, it triggered rumors that Microsoft would spend 50 billion dollars to buy Salesforce.
Because the competition for cloud computing customers will be further intensified, Amazon, Microsoft, Google and other three technology giants have now ranked top three through arduous negotiations and attractive transactions.
From the sales of cloud computing in 2015, AWS achieved 7.9 billion US dollars, Microsoft achieved 1.1 billion US dollars in sales, while Google's cloud platform only achieved less than 500 million US dollars in sales, which seems to present a situation of "one super and more powerful". In fact, since the establishment of AWS in 2006, it has become the leader of the global cloud computing market. However, after Amazon created cloud computing services, competitors have emerged one after another.
Microsoft launched Azure in 2010, starting with its own PaaS service, and then launched an impact on AWS in the IaaS market. According to the data from market research Gartner, The growth rate of Azure is higher than that of Amazon AWS.
Similarly, Google launched the PaaS service App Engine in 2008 to help developers better develop applications. In 2013, Google launched App
Engine was renamed Cloud Platform and set foot in IaaS service. Although its development speed was slower than that of Amazon and Microsoft, it still won the favor of large enterprise customers such as Coca Cola and Best Buy. Such as IBM, Oracle, HP, etc. Although Amazon has shown a dominant position in market share, from the trend of cloud computing, the future pattern is likely to be "multipolar".
