Dell is closely studying the EMC playbook
Silver Lake's Egon Durban interviewed by Adam
Lashinsky at Fortune Brainstorm Tech 2015
Photograph by Stuart Isett — Fortune Brainstorm
Dell director names two business units that could be
spun out via EMC’s “federation” model.
It has been
around 18 months since Michael Dell teamed up with Silver Lake
Partners to take Dell Inc. private for $24.9 billion. Now he’s
apparently thinking about parts of the business that could be spun out
or combined, by following EMC Corp.’s “federation” business model
managing partner Egon Durban said Tuesday that the company is thinking
about spinning out or combining some of its high-growth assets, during
an interview at Fortune Brainstorm Tech.
“I think what
[EMC CEO Joe] Tucci has done with VMWare is a good example of that,
where you can take something that people don’t fully understand,
buried in the portfolio, and unlock it while still having a
partnership with the mothership,” said Durban, who sits on the Dell
board of directors.
that the company was not “committed at this stage” to doing any
spin-outs or combinations, but did identify two potential Dell
business units that could get the “federation” treatment: SecureWorks,
a cybersecurity business acquired in 2011 for $612 million, and Boomi,
a cloud integration software platform acquired in 2010 for an
said that Silver Lake’s equity in Dell has appreciated since the
buyout closed, and that the company’s debt load has been reduced. At
the same time, however, acknowledged that this particular year has
been “challenging,” in part due to the Microsoft Windows cycle.
Below is the full video of Durban’s interview at
Fortune Brainstorm Tech. The Dell section begins at the 5:20 mark: