Pure: Dell-EMC deal 'comes out of weakness, not strength'
Pure Storage makes a play for EMC and Dell partners as it predicts "upheaval"
Pure Storage has predicted channel disruption, product discontinuation and layoffs at EMC and Dell following this week's deal, which it has used as an opportunity to lure over the duo's partners.
In a blog post, Pure's chief executive Scott Dietzen said Dell's planned $67bn takeover of EMC is a signal of the pair's weakness, which will have a knock-on impact on the channel.
He said the partners and customers of each company are likely to face significant change.
"EMC and, to a lesser extent, Dell customers and partners can expect some upheaval in the coming months and years," he said. "The level of debt contemplated in this deal is unprecedented. In addition to likely inevitable layoffs, we would expect to see redundant and less successful product lines eliminated, with future investment in flagships like Symmetrix/VMAX, VNX and Compellent potentially at risk."
Dietzen added that the all-flash market - in which it competes with EMC's XtremIO product - is also set for massive change in light of the planned union.
"Will the new Dell-EMC choose to invest in two all-flash arrays in an attempt to fund both XtremIO - which is more mature - and [Dell's] DSSD - which is more innovative - or try to pick a winner now?" he said.
"Partners will also likely face disruption as disparate channel programmes are integrated and an emphasis on efficiency [and] debt reduction infringes on partner margins. However, perhaps the greatest risk to customers and partners is that some of the best and brightest employees choose not to take on a painful multi-year integration effort.
"This transaction comes out of weakness, not strength. Dell has been exposed to the same disruption in the PC and server market that encouraged IBM to spin out its business to Lenovo and HP to split in two."
He said he wishes EMC and Dell well in their bid to merge, but urged partners to look at Pure's channel offering instead. He claimed Pure's NetPromoter Score - which is a measure of customers' satisfaction - is two-and-a-half times higher than both EMC's and Dell's, citing what he claims are figures from a third party.
"While we compete vigorously with EMC, we respect them and the industry leadership position they have held for decades," he said. "I believe competing with EMC has made Pure a better company.
"For EMC and Dell customers and partners: This is a great time to investigate alternative solutions."