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Data center News

The 10 Biggest Dell Technologies News Stories Of 2021

Mark Haranas

Here’s the 10 most important Dell Technologies news stories of 2021—from VMware and Apex to channel partner conflict.

 

2. VMware Becomes Independent Via Dell Spin-Off

On Nov. 1, Dell Technologies spun off its majority stake in VMware, making VMware an independent company for the first time since 2004.

Dell and VMware had a highly successful go-to-market and innovation strategy from 2016 to 2021, specifically with many joint channel partners. The two companies hope to keep that alive at least for the next five-year through a commercial agreement.

However, with VMware no longer direct attached to Dell, CEO Raghu Raghuram said his company will look to form new and expanded partnerships with other vendors as it looks to become the Switzerland of the multi-cloud world. VMware is likely looking to form new partnerships with public cloud players as well as other hardware providers who may compete with Dell as its now free to do so.

For Dell’s part, spinning off VMware helped it achieve an investment grade rating in 2021 to pave the way to attract new types of investors thanks to an improved capital structure. Dell also received over $9 billion in cash dividends from the spin-off that it will use to pay down its core debt balance.

It is key to note that CEO Michael Dell is still chairman of VMware and is the largest shareholder.

It will be interesting to see how Dell and VMware’s relationship pans out in the public in 2022 as both will want to keep a friendly arms-distance away from each other. Additionally, Dell could potentially make a major acquisition this year thanks to the spin-off.

 
Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

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