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 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.”