Tag Archives: acquisition

tesla’s solarcity bid isn’t about energy production

Ben Thompson* (temporary paywall) makes an excellent first-order analysis of Elon Musk's bid to acquimerge SolarCity with Tesla. But he, uncharacteristically, stops short of seeing the mid- and long-term reasons for the acquimerge.

It's about SpaceX.

It's about Mars.

It's about the Moon.

Musk knows that he needs an incredibly-solid pipeline of technology to get SpaceX past its initial "toy" phases of being a launch company to the ISS.

He wants to ensure that he's able to support the future on non-terrestrial bodies – lunar missions, Mars missions, long-term space exploration, high-altitude space stations, etc.

Sure, it happens to be good for Tesla (integrating solar tech at Tesla charging stations is a no-brainer). But that's not the end game.

The goal is space.

* Follow Ben on Twitter – @benthompson

dell buys emc

So I missed predicting anything like this one.

If you’ve been under a rock, like apparently I was last week, you’ve missed out on hearing Dell is purchasing EMC. For $67 billion. With a “B”.

This seems to be taking lots of people by surprise, but it makes perfect sense: Dell is already a huge supplier of servers into not only the SMB market, but also enterprise and cloud providers. EMC needs to find ways to keep their expensive storage relevant, especially in an era of storage proliferation, do-it-yourself options that are more than merely good enough, and less and less need for “dedicated” storage (though you still need flash in the underlying arrays, contrary to what Todd Mace thinks).

Thin provisioning, on-demand storage expansion and contraction (ok, ok – so the “contraction” part is not common), separation of duties via *aaS architectures, and more has been pushing EMC not so much to a bit or bench player, but into a corner of making it harder and harder to justify their pricing.

Silver Lake & Michael Dell obviously see the benefit of doing what some have claimed as the biggest merger in tech history (the Compaq-HP debacle was ~$25 billion back in 2001; AOL-TimeWarner was ~$106 billion, but not a pure tech merger). But the benefit is not the synergy of storage and servers.

Nor is it the management software, services groups, great corporate management, or anything of the kind.

The benefit will be in having a completely vertically-integrated and holistic offering because EMC is the majority owner of VMware.

That is why Dell et al wanted EMC. And why they’re willing to pay $67 billion in cash, stock, debt, etc to get it.

This move perfectly pivots Dell, already maneuvering away from “just” servers into a major competitor in the cloud space – especially the enterprise cloud space.

HP and IBM have their own storage and server offerings (IBM’s x86 offerings are all Lenovo now since they sold them off, but whatever) – but they don’t have the virtualization platform to bring it about in a soup-to-nuts way. Of course, HP and IBM will happily put VMware onto servers they sell you (IBM will also happily sell you non-x86 gear with their pSeries and zSeries stuff, but those are discussions for another day).

HP Helion and IBM Bluemix are interesting. But not as interesting, in my opinion, as Amazon’s AWS, OpenStack, and other offerings from !HP and !IBM.

Oracle is really the only main competition to the hybrid Dell-EMC company which will emerge, via their acquisition of Sun a few years ago (which is also a whole other conversation).

It’ll be interesting to see how the future HPE will try to compete against future Dell.

avnet buying seamless technologies

Avnet (AVT) is acquiring Seamless Technologies (my employer).

Full Press Release (well, the important part): (and WSJ reprint)

Avnet, Inc. Announces Agreement to Acquire Assets of Seamless Technologies, Inc.

Significantly Expands Cloud and Automation Solutions

PHOENIX–(BUSINESS WIRE)– Avnet, Inc. (NYSE:AVT) announced today that it has agreed to acquire substantially all of the assets of Seamless Technologies, an IT private cloud and data center automation service provider. Seamless Technologies provides expertise and services in IT infrastructure software technologies, automation, cloud, virtualization, integration, and Information Technology Infrastructure Library (ITIL) best practices. Seamless Technologies has developed a robust cloud practice, working with customers of all sizes on their transition to private, public and hybrid cloud environments. The company generated revenue of approximately US$14 million in the 2012 calendar year.

“Recent services acquisitions have been well-received by our partners. This latest acquisition adds a critical component to our expanding services portfolio, with private cloud, virtualization and data center automation services that broaden and deepen our suite of solutions for our customers,” said Tony Vottima, senior vice president and general manager, Avnet Services, Americas. “Our capabilities span presales through implementation, training and managed services, which create new opportunities for our suppliers and reseller partners.”

Founded in 1992, Seamless Technologies has created a unique set of intellectual property and software that enables faster integration and deployment of large-scale private cloud and IT infrastructure environments. This acquisition will be integrated into the operations of Avnet Services.

“The addition of these new service offerings supports our long-range vision of solutions distribution, delivering technologies, services and solutions that provide high business value and accelerate hardware, software and services sales. Seamless Technologies’ domain expertise in financial services, healthcare, and insurance will complement our SolutionsPath® strategy and enable our partners and customers to achieve their business goals,” Vottima added.

This transaction, which is expected to close in approximately 30 days, is immediately accretive to earnings and supports Avnet’s long-term return on capital goal of 12.5 percent.