Shareholders in EMC and VMW are demanding changes... or else.
@Trying to shore up Dell deal and boost VMware, EMC says it will keep majority stake in Virtustream
Nov 25, 2015, 10:47am PST The new plan will see EMC assume Virtustream's losses with the majority stake and give VMware a minority stake in Virtustream. According to Re/code, some institutional shareholders want to address the recent 30 percent drop in VMware shares and 9 percent drop in EMC shares by having VMware buy back as much as $3 billion worth of VMware shares. The anonymously named investors also want to adjust the rights and protections attached to a proposed block of VMware tracking shares. “They have to improve the deal, and if they don’t, we’re going to vote against it — and a lot of other people are going to vote against it,” one shareholder told Re/code.
VMware is expanding its toehold in the Chinese market. The company has inked a deal with China Telecom to deliver hybrid cloud services to the national market starting in January 2015.
As noted in an article on DigiTimes, the strategic cooperation agreement will enable VMware to deliver its hybrid cloud services through China Telecom. And according to David Sung, corporate vice president and president of Greater China for VMware, the demand in China for hybrid cloud services is expected to take off in 2015.
Sentiment: Strong Buy
VMW is getting screwed on this deal with this tracking stock. Just another indirect way to dilute its value. EMC mgt wants the deal at whatever cost to VM stock value.
Or Dell could sell off some non-core assets. And they could divest their PC division... I'm sure HPI will be talking to Dell about that in the next few months. All pieces of the puzzle will slowly fit together. Remember, VMW is the jewel, and at some point its valuation will reflect that fact again.
@Dell Inc is preparing to sell around $10 billion in non-core assets, including software and services, to reduce the heavy debt load it will be taking on to buy EMC Corp (EMC.N), according to people familiar with the matter. Dell, which will assume $49.5 billion of debt once the merger with EMC is completed, has communicated the plan to credit rating agencies in recent days, the people said on Monday. Assets Dell could sell include Quest Software, which helps with information technology (IT) management; SonicWall, an e-mail encryption and data security provider; back-up solutions unit AppAssure; as well as IT services provider Perot Systems, the people said.
toldya but fools don't listen. now good employees will start to flee the sinking ship making it sink even faster
You sound pretty confused too...You posted repeatedly that the VMW tracking stock is worthless yet and you say VMW stock is undervalued and the price is going to head up.
----hp shelving helion/openstack/opensource.----
Where did you read this? The only recent HPQ cloud news I've seen is that they're abandoning their public cloud offerings to focus on hybrid/private cloud. They continue to invest in Helion Openstack. Only Helion Public Cloud is gone. Stop spreading BS.
@A new model to deliver public cloud Stephen_Spector| October 21, 2015 Today, our customers are consistently telling us that in order to meet their full spectrum of needs, they want a hybrid combination of efficiently managed traditional IT and private cloud, as well as access to SaaS applications and public cloud capabilities for certain workloads. With these customer needs in mind, we have made the decision to double-down on our private and managed cloud capabilities. For cloud-enabling software and solutions, we will continue to innovate and invest in our HP Helion OpenStack® platform. HP Helion OpenStack® has seen strong customer adoption and now runs our industry leading private cloud solution, HP Helion CloudSystem, which continues to deliver strong double-digit revenue growth and win enterprise customers. On the cloud services side, we will focus our resources on our Managed and Virtual Private Cloud offerings. These offerings will continue to expand, and we will have some very exciting announcements on these fronts in the coming weeks.Customer tell us that they want the ability to bring together multiple cloud environments under a flexible and enterprise-grade hybrid cloud model. In order to deliver on this demand with best-of-breed public cloud offerings, we will move to a strategic, multiple partner-based model for public cloud capabilities. Therefore, we will sunset our HP Helion Public Cloud offering on January 31, 2016.
whoa, a lot of articles about openstack complexities, security...etc. guess the vmw cost disadvantage would be outweighed by other issues......and ultimately great cost with openstack. besides , hp and the rest need to make money from the proprietary. wags.
Sentiment: Strong Buy