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HP CEO says EMC/Dell deal is a good opportunity. For HP

Chief Executive Officer of HP, Meg Whitman, had her say on the recent EMC/Dell acquisition deal, and she believes it is a good opportunity for her company as the deal will mean a lot of tremor, confusion and frustration for the new company and its employees.

In an email letter sent to “All Hewlett Packard Enterprise Employees” Whitman says the merger is “a good thing for Hewlett Packard Enterprise and an opportunity for us to seize the moment.”

She believes Dell is copying HP’s strategy and that it’s two years behind. She also said the new company will need to relocate a lot of funds to sustain the new deal, which could hurt customer satisfaction.

“To pay back the interest on the $50 billion of debt that the new combined company will have on their balance sheet, Dell will need to pay roughly $2.5 billion a year in interest alone. That's $2.5 billion that they will allocate away from R&D and other business critical activities, which will keep them from better serving their customers,” The Register (opens in new tab) quotes her saying.

“Integrating EMC and Dell, which combined have more than $75 billion in revenue and nearly 200,000 employees, is no small feat. This will be a massive undertaking and an enormous distraction for employees and their management team as two very different cultures come together, leadership teams shift and an entirely new strategy is developed.”

“All of this at the very moment when we have completed our journey to create two new, focused companies. We're organized, we have a strong balance sheet and our innovation engine is humming. So, get out in front of your customers and your partners. Tell them our story. Take advantage of this moment.”

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.