451 Research Releases Results From Dell, EMC Survey
NEW YORK, N.Y., Oct. 15 -- A new 451 Research survey of 447 IT decision-makers conducted less than 24 hours after Dell announced plans to acquire EMC for $63 billion reveals some stark differences in customer perceptions of the two companies, the impact of the deal and the new combined entity.
Customer sentiment was optimistic overall, with 31% of IT decision-makers describing the acquisition as a positive move, compared with 20% seeing it in a negative light. But Dell customers were significantly more positive about the deal than EMC customers. More than 40% of EMC-exclusive customers (companies who currently purchase from EMC, but do not purchase from Dell) have a negative impression of the proposed acquisition, compared with just 15% of Dell customers.
Nearly 39% of those customers who saw the deal as a positive development said they expect the companies to complement each other, while another 22% said they appreciate the ability to purchase a broader array of products from a single-source vendor. Among customers that saw the deal as a negative, 27% thought it would be a distraction to both entities, while another 18% think the combined company is destined to fail.
There was a substantial contrast in perceptions among Dell- and EMC-exclusive customers about positioning and what value proposition each entity brings to the market. Forty-three percent of all EMC-only customers view Dell primarily as a PC supplier, and another 20% identify Dell mainly as a low-cost supplier. Conversely, 42% of Dell customers mainly identify the company as an enterprise systems supplier. "Dell customers believe they will benefit from access to a much larger portfolio of technologies across storage, information security, IT services, servers and PCs from a single vendor," said Dan Harrington, 451 Research Director and one of the authors of the study results. "This lends itself well to current IT buying patterns, which are favoring converged and integrated solutions from a smaller number of vendors.
"The most concerning customer revelation for Dell from the survey is that 42% of EMC-only customers believe the combined Dell-EMC company is not aligned with the goals of their organization, and 13% report they will spend less than previously planned with EMC - more than twice the rate of Dell customers," Harrington added.
These findings are based on the opinions of 447 enterprise IT decision-makers - part of 451 Research's Voice of the Enterprise community - polled less than 24 hours after the EMC announcement. Full details of the study results are available here.
About 451 Research
451 Research is a preeminent information technology research and advisory company. With a core focus on technology innovation and market disruption, we provide essential insight for leaders of the digital economy. More than 100 analysts and consultants deliver that insight via syndicated research, advisory services and live events to more than 1,000 client organizations in North America, Europe and around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The 451 Group. Learn more.
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Source: 451 Research
