EMC and federation
They suck at it.
I tried to describe it but the ratio of profanity to context got too high.
Activist investors have taken a billion-dollar stake in EMC in order to break apart its federation and spin out VMware, according to The Wall Street Journal. Quoting folks familiar with the matter, The Journal says Elliot Management Corporation, an outfit financial rating service Hoovers describes as a hedge fund that "takes …
EMC's federation does resemble at times Dilbert's Battling Business Units (BBU) concept but the idea is an interesting one and not one that is always going to be easy to execute. The idea as espoused by the EMC earwigs....bigwigs, is to provide a stack that works together but one that does not mandate or require any specific layers allowing the customers to pick and choose which products or companies that they wish to use.
This means the various parts have to both cooperate and compete with each other which is always going to have some tension and occasional confusion or disaster. But, it seems like a worthwhile endeavour and personally I can see the value in each of the EMC federation partners having ties to one another that allows them to cooperate at a level that would be difficult if they were all spun apart.
In this case the parts do seem to both make sense and to be bigger than the sum of the parts.
I also doubt the long term value in these financial types that come in and want to pry, leverage, spin or restructure business for no other reason other than to maximise share holder value. Few if any have any real concern for the companies, the products, the employees or the customers involved and only want a return on their supposed investment.
I wouldn't be surprised to see VCE or Pivotal jettisoned to keep the activist investors satisfied ... in the end it wouldn't be too surprising to see some form of reverse takeover, with VMware playing the lead hand and then selling off the EMC rump.
Time will tell.
XOXO Gossip Geek.