Ever since rumors surfaced of a possible HP merger, and particularly since the latter’s own breakup announcement, EMC has been in the news for all the wrong reasons. As I write in this column, breaking up EMC’s federated structure actually seem more likely now that HP is splitting. Worse yet for EMC’s status quo, activist investors are calling for it to break itself apart by divesting VMware and Pivotal, meaning this low-key company better known to CIOs and IT staffers than hedge fund managers now finds itself in Wall Street’s crosshairs as the next target for financial engineering.
However the company’s engineers, marketers and channel partners haven’t gotten the memo and are still operating under the company’s Federation, which I detailed in an earlier column, motto: Better Together. Case in point, today the company announced the first of its Federation Solutions by productizing the company’s software-defined data center (SDDC) vision into a bundled offering of software, hardware and product support.
In this column, I outline details of its new SDDC software and support solution, but caution that while this represents a needed step towards realizing the collective EMC/VMware vision, it’s unlikely to quell demands from hedge fund activists. Sadly for CEO Joe Tucci, his final months as CEO will not be peaceful as he will have a difficult time holding the structure together in an environment where even tech titans like Cisco, Microsoft and Oracle face demands for radical restructuring.