VMware is, of course, a technology giant in its own right: For the fiscal year ended January 29, 2021, VMware had sales of $ 11.8 billion, up 9% year over year, and operating income of $ 2.4 billion, up 66%.

Dell’s move that includes this massive one-time payment will consume VMware’s cash reserves and, as a standalone company, weigh it down with its own debt: VMware plans to pay the dividend of $ 11.5 billion to $ 12 billion with up to $ 3.5 billion US dollars electricity to finance cash reserves and the rest in debt.

So what will change if the plans are approved by Dell? Probably not much right away, as the company already has a great deal of strategic and operational autonomy as part of the broader Dell empire. The go-to-market strategy is closely tied to Dell, but that will not change: “Dell Technologies and VMware will enter into a trade agreement that preserves the companies’ unique and differentiated approaches to developing critical solutions together and is focused on …

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