October 2015


Welcome to the October Cirrostratus Group Newsletter.


Well we have another very large tech merger, Dell/EMC. Shades of HP/Compaq? See my thoughts below on this merger.


Guess who's leaving the public cloud business and who's entering it?  


I am always interested in your plans for developing and offering cloud applications. Let me know what you're working on. 

Paul Ressler
The Cirrostratus Group




On October 12 Dell announced that they would acquire EMC so technically this is an acquisition, not a merger. But the integration challenges are similar to a merger, the best of both needs to be preserved in the vision of the future company.

This article, Making Sense of the Dell-EMC-VMware Deal, not only gives a detailed analysis of the financial structure but also outlines the challenges ahead with VMware being a key piece.

One of the main drivers of the deal is the maturation of the storage market. Probably more important is the influence that large cloud and Internet companies have made on the storage market with their use of white label storage and the rapid rise of cloud storage services, both of which have influencedd how companies buy storage. I found this article, How Google Engineered the Dell-EMC Merger, to explain this very well.
Entries & Exits 

HP just announced that they have decided to leave the public cloud business effective end of January 2016. They positioned this as focusing on private and hybrid clouds but it wasn't too long ago that they touted their public cloud offering as a major growth opportunity. Once again we see a major technology provider who has found that they can't compete with Amazon's cloud.


In an opposite action Oracle has announced their Elastic Compute offer along with other Infrastructure as a Service offerings. Surprising that they use the same name as Amazon. Any bets on how long Oracle will be in the public cloud business?


Contact Paul Ressler at the The Cirrostratus Group

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