Is Dell Technologies casually whistling past the cloud?
Dell Technologies World 2018 showcased how the company is integrating the changes resulting from Dell’s privatization in October 2013 and acquisition of EMC and its federated companies in September 2016. TBR believes that the merged companies are functioning well together and benefiting from technological and organizational synergies. The combined company has a clear mission and role as a provider of ICT infrastructure, benefiting both its internal decision making and its reputation in the market. This role, emphasizing infrastructure over solutions, fits the requirements of new technologies and new diverse solutions, advancing Dell Technologies (NYSE: DVMT) in the market. Within the constraints of the economically mature yet technologically innovative infrastructure market, Dell Technologies is well positioned for continued moderate growth at margins that allow it to reduce the debt incurred during its transformations. Public cloud continues to threaten infrastructure providers such as Dell Technologies, however, and while the company is pursuing all available remedies, the extent to which computing resources are concentrated governs its growth and margins.