Data center News
The 10 Top Dell Technologies News Stories Of 2020
From PowerStore and VxRail to a new global channel chief and Project Apex, CRN breaks down the top ten biggest Dell Technologies news stories of 2020.
8. Dell To Spin Off VMware
Dell Technologies sent shockwaves through the industry this year by confirming it’s exploring the spin-off of its 81 percent stake in VMware. Dell owns the majority stake in the virtualization kingpin and rising hybrid cloud software star through its blockbuster acquisition of EMC in 2016.
However, CRN discovered that Dell plans to spin off its 81 percent stake in VMware to Dell Technologies and VMware shareholders, versus simply selling off VMware. In an interview with CRN, Dell Technologies CEO and VMware Chairman Michael Dell said the move will boost both companies.
“It simplifies the capital structures, it enhances strategic flexibility and gives both companies more flexibility, while we continue with the mutually beneficial strategic and commercial partnership that we’ve had for many, many years that has worked extremely well and it continues to,” said Dell. “So this is different from selling VMware—we are not selling VMware, by the way. Some people are a little confused about that.”
If all goes as planned, Dell will not spin off its shares of VMware before September 2021 for tax reasons. Dell is seeking to get it to qualify as tax-free for federal income tax purposes.