Following Dell’s recent deal to acquire storage company EMC for £44 billion, HP Enterprise boss Meg Whitman has criticised the deal.
In an email sent to HP Enterprise employees, Whitman said that the merger is “a good thing for Hewlett Packard Enterprise and an opportunity for us to seize the moment,” reports The Register.
She also went on to say that HP Enterprise is two years ahead of its game, and that Dell is emulating HP’s strategy.
In the email, Whitman said: “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.”
Whitman believes that the new partnership will also be a distraction for many of Dell’s employees and will spark a ‘massive undertaking’ for the company.
Plus, Whitman criticised the move further stating that it will cause chaos in the channel as two different programs and approaches come together.
HP is splitting into two separate companies next month.
Whitman ended her email saying: “All of this at the very moment when we have completed our journey to create two new, focused companies.
“We’re organised, 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.”
Certainly Whitman may feel somewhat threatened by the acquisition, which could suggest why she has taken a stab at Dell.
Michael Dell said that his company ‘will be exceptionally well positioned for growth in the most strategic areas of next-generation IT’.
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