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Cynthia Harvey
Cynthia Harvey
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10 Big 2015 Tech Mergers That Will Transform Data Centers

The technology industry was buffeted by tremendous M&A activity this year. Here are 10 deals that will impact data center networking, storage, security and systems.
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Almost a year ago, analysts at IDC predicted that the technology industry might, "see two or three major mergers, acquisitions, or restructurings among the top-tier IT vendors in 2015." In reality, this has been a tremendously busy year for tech mergers and acquisitions, culminating in the largest merger ever in the sector: Dell's proposed buyout of EMC. The networking, storage, semiconductor, security, and cloud computing markets all saw major changes that altered the competitive landscape.

The repercussions of these mergers could impact enterprise data centers for many years to come. In some cases, the mergers could result in new synergies that could add valuable capabilities to various hardware and software products, and in others organizations may find that the products or services they were using are being discontinued. Some of the newly formed companies may be able to realize efficiencies that result in lower prices for their customers, while the reduction in competition could result in price increases for others.

On the following pages, we highlight 10 big mergers and acquisitions from this year that could have major implications for data centers. They aren't necessarily the biggest deals of the year, but all will be very significant for the technology industry and enterprise IT pros in the years ahead.

(Image: Maxiphoto/iStockphoto)

 

Cynthia Harvey is a freelance writer and editor based in the Detroit area. She has been covering the technology industry for more than fifteen years. View Full Bio

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dan_conde
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dan_conde,
User Rank: Author
11/25/2015 | 10:16:49 AM
Re: tech mergers
@Aritshar1  Regarding Ericsson - they are a firm with both hardware, software, and services (most of the business comes from providing services for mobile operators like Vodafone).    Although they make hardware, they also create solutions for their customers by using hardware (like carrier routers) they purchase from companies like Juniper and Cisco.    So in some sense, it's business as they have done before, but with more formal agreement to jointly sell.

I suspect both sides with benefit.  There are differences in the software they both have -- such as the approaches to SDN or NFV, or even servers (Ericsson has a hyperscale datacenter system) but they are probably a small part of today's business.  The major part is the networking hardware.

I did ask people at Ericsso about specifics on products and they said it's still too early to tell, so I we need to wait a bit longer. 
aditshar1
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aditshar1,
User Rank: Ninja
11/25/2015 | 8:00:31 AM
Re: tech mergers
Good example @dan, but i am still confused who is working with whom, and most important who will yield benefit, both of are big companies. Ericsson claims they will be working on SDN/NFV with Cisco, and these technologies have to first touch IT before they can be bought into action in telecom.
dan_conde
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dan_conde,
User Rank: Author
11/24/2015 | 1:47:06 PM
Re: tech mergers
I agree, in that the new infrastructure being rolled out in India shows the importance of IP, thus we no longer have a clear separation of telecom industry and IP-based networking. Cisco is working with Ericsson for this reason.
aditshar1
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aditshar1,
User Rank: Ninja
11/24/2015 | 8:56:20 AM
Re: tech mergers
We all understand, companies follow rule, if you cannot make atleast buy it if you can. Cisco seems little serious about this, they dont want to spare even an edge of networking and for that they have complete package. Data Center is something which is facing large transformation these days, so frankly speaking i dont think any one would like to take initiative and step first unless they have some test or business case ready on the hand i see companies like cisco showing their high interest in telecom industry which is comparitively growing and grooming, In India what i see in telecom is migration of services to IP from TDM, microwave to fiber, launch of 4G and planning on 5G, in all this IP is playing important role.
dan_conde
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dan_conde,
User Rank: Author
11/23/2015 | 10:31:40 AM
Re: tech mergers
Aditshar1: Yes, Cisco has not been standing still and they have a long-term history of acquisitions to enhance their product line.  So I think what you're saying is that Cisco will not get hurt even if their involvement in the VCE (owned mostly by EMC, with small ownership by Cisco -- even though it uses UCS servers get diminished.
dan_conde
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dan_conde,
User Rank: Author
11/23/2015 | 10:25:37 AM
Re: tech mergers
The data in the survey shows that people are comfortable with completeness (i.e. I can go to one vendor for servers and storage), stability (they feel more comfort that the two companies will support each other) and lower-cost (Dell is famous for lowering cost).  So perhaps virsingh211's concerns can be a longer-term issue?  Maybe those can be investigated in a follow-up survey too.
aditshar1
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aditshar1,
User Rank: Ninja
11/23/2015 | 6:17:43 AM
Re: tech mergers
If we see track record of Cisco in last one year, they have been pretty agressive in almost all the productive areas, either it is merger, new release, service, customer satisfaction. I personally dont see their comparison (atleast for now) considering the fact they have been able to expand their horizon and are still working on same.
virsingh211
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virsingh211,
User Rank: Ninja
11/22/2015 | 10:46:11 PM
Re: tech mergers
One of the largest merger news we have seen is Dell To Acquire EMC, threat i see is EMC disolving it's value. Both companies are struggling renewing and reviving themselves in market and this makes stakeholders little uncomfortable with thinking that they would rarely succeed when combined.
dan_conde
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dan_conde,
User Rank: Author
11/20/2015 | 3:24:44 PM
Re: tech mergers
Thanks for posting the link.

I would like to hear the readers' opinions on the survey.  Those would be useful for follow-up surveys.

There are some complex areas, such as looking at Dell vs. Cisco in the future within VCE, due to having both Dell and Cisco offering both server and networking products, and it's hard to do a detailed survey with all the combinations, but this survey has the sentiment on the general impressions.  
MarciaNWC
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MarciaNWC,
User Rank: Strategist
11/20/2015 | 3:19:19 PM
Re: tech mergers
Thanks Dan, here's the link: http://www.esg-global.com/briefs/dell-emc-customer-sentiment-analysis
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