EMC's Goulden Reinforces Commitment To Channel In Letter To Partners

David Goulden, president of EMC's largest business unit, says the company is committed to open communication with partners, its partner programs, products, R&D investments and customer choice as the data storage giant prepares to be acquired by Dell.

"I commit to you that EMC will continue to work closely with our partners to power customers' IT transformation initiatives," Goulden, CEO of EMC Information Infrastructure, wrote in an email provided to CRN by an EMC partner.

"Our combined product and technology portfolios are complementary, so partners can plan with confidence as we expect minimal disruption to existing product lines," Goulden wrote. "In fact, the strength of our combination is generating positive feedback from customers and partners excited about what the future will bring."

[Related: VMware Partners Bullish On EMC Virtustream Joint Venture, But See Uncertain Road Ahead]

Goulden sent the same letter, with minor changes, to customers.

Dan Serpico, president of San Francisco-based FusionStorm, a large solution provider that partners with Dell, EMC and VMware, told CRN Goulden's letter indicates that the companies are making progress with integration plans as part of the $67 billion merger.

"It doesn't say much. … One can infer that the two companies are moving forward on the integration, given that they continue to send these kinds of messages, either internal or external," Serpico said.

Goulden said EMC will "remain committed to our partner ecosystems and partner programs" as well as continue to "enhance our partnerships and technology ecosystems, including enhancing existing products and roadmaps and our customary commitment to long term support for all current products ... [and] continue investing in R&D, remain dedicated to customer choice without lock-in requirements and listen to partner feedback and provide clear, frequent updates."

Round Rock, Texas-based Dell revealed last month that it and Silver Lake Partners, the private equity firm that is part owner of Dell, intended to acquire Hopkinton, Mass.-based EMC in a blockbuster $67 billion deal that would create the world's largest privately held technology company. The deal is expected to close in the middle of next year, but it's got a long way to go.

In addition to the work of integrating the companies, a task being spearheaded by Dell Chief Operating Officer Rory Read and EMC Chief Operating Officer Howard Elias, the merger could be complicated by EMC's falling stock price and concerns about the deal's tax implications.

EMC's share price has been in decline for a year, from a high around $30 a share to about $25.22 currently. It spiked to $28.35 the day the Dell acquisition was announced.

Dell offered $33.15 a share for EMC, including $24.05 in cash and about $9.10 in tracking stock linked to VMware. The tracking stock would help offset the debt burden Dell is taking on to complete the deal and would also help Dell avoid a massive tax bill.

Reports have indicated that the IRS may disapprove of Dell's use of the tracking stock, putting the company on the hook for about $9 billion in taxes on top of the nearly $50 billion in debt it's taking on to pay for the transaction.

PUBLISHED NOV. 24, 2015

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