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Monday, October 12, 2015

Dell to purchase EMC in $67 billion record tech deal, aims for cloud market, (NASDAQ: CSCO)

Computer maker Dell Inc said on Monday it had agreed to purchase data storage company EMC Corp in a $67 billion record technology deal that will unite two mature companies and create an enterprise technology powerhouse.The acquisition will help privately held Dell diversify from a stagnant personal-computer market and give it greater scale in the more profitable and faster-growing market for managing and storing data.Combining Dell's server businesses with EMC's storage and virtualization assets, the merged company will have a broader product offering with which to challenge IBM Corp, Cisco Systems Inc and Hewlett-Packard Co in the areas of cloud computing, mobility and cyber security. "I don't think either Dell or EMC were viable over the long run as a standalone; they really needed each other," said Eric Johnson, dean of the Owen School of Management at Vanderbilt University. "Dell was mostly on the consumer side, which is a terrible place to be. EMC had some enterprise products, but not the complete package."

Cisco System, Inc. (Cisco) designs, manufactures, and sells Internet protocol (IP)-based networking products and services related to the communications and information technology (IT) industry. Shares of CSCO fell by 0.34% or $-0.095/share to $27.82. In the past year, the shares have traded as low as $22.49 and as high as $30.31. On average, 28161000 shares of CSCO exchange hands on a given day and today's volume is recorded at 5454040.