Making Sense of Dell + EMC + VMware

Dell recently announced an agreement to acquire EMC – and with it, control of VMware – in a deal valued at $67 billion.

Many tech industry incumbents are stalling – in revenue growth, in investor interest, in strategic position – and something has to give. This deal is a new way for something to give… one that points the way to the future of large public incumbent technology companies. Pulling the deal apart, though, is a bit like opening a set of Russian nesting dolls, backwards: starting from the smallest detail to work our way outwards to the surface.

While analyses of the deal so far have been devoted to the implications for the computing, storage, and networking industries or financing of the transaction, analyzing these threads together reveals a far more interesting story.

Read Andreessen Horowitz’s analysis on the impact of the announcement.


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