Dell acquires EMC, NH to see changes
MANCHESTER — New England’s tech landscape could be in for some changes with Dell’s acquisition of EMC.
Both companies have offices in New Hampshire, where players in the Granite State’s growing tech industry will be watching the transition.
“It’s an enormous merger of two mainstays in the technology industry,” said Kyle York, chief marketing officer of Manchester-based internet performance company Dyn.
York described the Dell-EMC combination as a “juggernaut” that will immediately be among the top tier of companies in world of enterprise technology.
It’s also big news regionally, with terms of the deal announced Monday calling for the combined enterprise systems business to operate out of EMC’s headquarters in Hopkinton, Mass., about 50 miles south of Nashua.
“I’m certain this merger will only strengthen their footprint in New England,” York said.
York said the combined forces will be able to capitalize operating as a privately held company under Dell founder Michael Dell, who will be chairman and CEO of the new company. Dell’s headquarters will remain in Round Rock, Texas.
EMC chairman and CEO Joe Tucci said in a release that EMC has grown considerably from a small startup to a global leader in an industry that evolves quickly.
“The waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era,” Tucci said.
EMC said it has about 9,600 employees working in Massachusetts, but could not say how many commute from New Hampshire.
Regardless, York said the deal will impact the Granite State, home to Dyn and other tech leaders such as Manchester-based Autodesk and SilverTech.
“With any merger or acquisition, ecosystems tend to flourish with an influx of capital and liquidity and entrepreneurs looking to create the next technology success story,” he said. “It’ll be fun to watch how things transpire on both fronts.”
Hollis-based business writer Geoffrey James, a veteran of the tech industry, was more skeptical of the rosy outlook both companies portrayed in the announcement detailing the transaction.
“My first thought was that the track record of large mergers in computer industry is dismal usually,” James said Monday. “The thought is that we’re going to create synergies, but what in fact usually happens is that you try to cram two completely different cultures together, and there’s a struggle for power that consumes everyone’s energy for months and years at a time.”
James, who writes a daily blog for Inc.com, cited Hewlett-Packard’s acquisition of Compaq in 2002, which was followed several years later by massive job cuts at HP.
“It was just a very bad move because big computer companies get set in their ways. They have different ways of thinking about things and synergies usually turn out to be conflicts of interest,” James said. “I’d say short term, it’s not going to be anything because it will take a year to sort everything out.”