EMC global channel chief to split after Dell merger - sources

CRN understands Gregg Ambulos was offered a role at new organisation but chose not to accept

EMC's global channel chief Gregg Ambulos is preparing to leave the firm once its acquisition by Dell goes ahead, according to a source.

CRN understands that Ambulos (pictured), who has been at EMC for almost 20 years and has held a number of channel sales positions at the firm, was offered a role in the new organisation, but turned it down.

Dell announced last month that former AMD executive John Bryne would lead the channel for the combined Dell and EMC business.

EMC declined to comment and although on first publication Dell declined to comment too, it later told CRN that Ambulos will remain a "key player" in the combined organisation, branding the rumours "categorically untrue".

Last October, Dell announced plans to acquire EMC in a deal the pair claimed would close "between May and October" this year.

A number of closing dates have been mooted by sources throughout the process, but one source told CRN that the latest target is for everything to be wrapped up "in September".

Gaining approval from China is one of the final hurdles for the companies, after shareholders voted to approve the acquisition last month.

Risky business

In a 10-K document filed with the US Securities and Exchange Commission, EMC outlined a number of potential factors the acquisition could pose to their business.

Throughout the merger process, competitors such as HP and NetApp have said they hope to cash in on the acquisition, claiming that the process will slow Dell and EMC down and distract them.

The duo have rebuffed the claims in public statements and interviews, insisting things are "business as usual" until the deal is done. But in the filing - in which it is customary to detail risk factors - EMC said the merger could cause problems.

"There can be no assurance that the proposed merger with [Dell] will occur."

"Uncertainty about the effect of the proposed merger on our employees, customers and other parties may have a material adverse effect on our business," said the filing.

"Our employees may experience uncertainty about their roles following the merger. There can be no assurance that our employees, including key personnel, can be retained to the same extent that we have previously been able to attract and retain employees. Any loss of such employees could have a material adverse effect on our business, operations and financial position."

It added that other companies may be put off working with the combined entity.

"Parties with which we do business may experience uncertainty associated with the merger and related transactions, including with respect to current or future business relationships with us," it said. "Such uncertainty could cause customers, suppliers and others to seek to change existing business relationships or delay or defer certain business decisions with us and could have a material adverse effect on our business, operations and financial position."

Although almost a year has gone by since the plans to acquire EMC were announced, and significant amounts of integration work has been done - such as the announcement of a senior management team, new branding, and the gaining of EMC shareholder approval - the deal is not set in stone. This too could cause issues, the filing said.

"Failure to consummate the Dell transaction could have a material adverse impact on our business and financial results," it said. "There can be no assurance that the proposed merger with Dell will occur. If the merger is not completed for any reason, including as a result of a failure of our shareholders to approve the merger agreement, the ongoing business of EMC may be adversely affected and, without realising any of the benefits of having completed the merger, we may experience negative reactions from the financial markets, including negative impacts on the price of our common stock, and litigation related to any failure to complete the merger or related to any enforcement proceeding commenced against us to perform our obligations under the merger agreement.

"A failed transaction may result in negative publicity and a negative impression of us in the investment community. Further, any disruptions to our business resulting from the announcement and pendency of the merger, including any adverse changes in our relationships with our customers, partners and employees, could continue or accelerate in the event of a failed transaction."