Hewlett-Packard spreading FUD over Dell-EMC merger

Hewlett-Packard (HPQ) hopes to draw away enterprise data storage customers from Dell and EMC (EMC) using the classic approach of spreading FUD, business shorthand for “fear, uncertainty and doubt,” about its rivals.

Last week, HP CEO Meg Whitman criticized Dell’s planned $67 billion acquisition of EMC. HP later launched an opportunistic marketing campaign warning customers about potential upheaval in the storage business of the combined Dell-EMC.

A recent Twitter (TWTR) advertisement by HP Storage said, “Dell’s acquisition of EMC — uncertainty ahead,” with a picture of what looks like an earthquake-damaged road. The promoted tweet included a link to an HP blog post knocking the deal.

That post, written by Jorge Maestre, competitive strategist for global storage at HP Enterprise, said that the Dell-EMC merger would create complexity. The combined company will have to figure out which products to keep and what its unified storage strategy will be, Maestre said.

“A merger of this magnitude reshuffles the market, and every vendor on the planet is already in attack mode looking to pick off as many customers as possible,” Maestre said. “That leaves Dell with a TON of work to do. They have to merge two completely independent product, sales and support organizations.”

When the deal was announced on Oct. 12, HP issued a statement claiming that the Dell-EMC merger provided a “real opportunity” for HP.

“Two of our largest competitors are attempting a highly distracting, multiyear merger, just as we are launching two new, focused companies,” the HP statement said, according to Barron’s . “The massive debt burden Dell and EMC are taking on undoubtedly means that they will have to radically reduce R&D, and integration inevitably will create disruption as they rationalize product portfolios, channel programs and leadership.”

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Whitman later sent a memo to HP Enterprise employees titled “Seize the moment,” which hammered home the same points.

HP is scheduled to split into two publicly traded companies on Nov. 1. HP Inc. will run its PC and printer businesses. HP Enterprise will focus on enterprise information technology, including servers and storage.


Dell-EMC Deal Could Spark More Tech M&A Activity.

Dell: Keeping VMware ‘Important’ To EMC Deal Success.

View more information: https://www.investors.com/news/technology/click/hp-spreads-fear-uncertainty-doubt-over-dell-emc-merger/

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