Dell to Spin Off VMware – Steady as She Goes for Now

S. Schuchart

Summary Bullets:

  • The spinoff of Dell from VMware is long-term good for VMware customers.
  • Enterprise IT buyers and enterprise IT rivals to Dell need make no changes for the immediate future.

On April 15, 2021, Dell announced plans to spin off its VMware business, which will likely net Dell around $9 billion (USD) that it can used to pay down debt or go on an acquisition spree. Dell currently owns 81% of VMware, which it gained during its acquisition of EMC in 2015.  Beyond the obvious need to reduce its debt, it is widely believed that VMware (which still had its own stock) and Dell will both have higher values when they are evaluated as separate entities.  Michael Dell will remain chairman of the board for both companies. Continue reading “Dell to Spin Off VMware – Steady as She Goes for Now”