Project Apex also involves Dell in cloud infrastructure consumer experiences, rather than leaving it to VMware, the majority technology company owned by Dell.
Dell Technology Inc. has launched software that will burn off its hybrid-cloud dreams in a move by the hardware giant to create a future beyond the eventual spin-off of its most valuable asset, VMware Inc.
The item, called Project Apex, will allow consumers to handle information and apps through public clouds and their own data centers, Dell’s Round Rock, Texas, said Wednesday in a statement. It can also allow consumers to use the firm’s consumption-based technologies or through a subscription. The project is related to the competitor Hewlett Packard Enterprise Co.’s GreenLake offering, which offers consumers an unified view of their information technology environment.
Project Apex also involves Dell in cloud infrastructure consumer experiences, rather than leaving it to VMware, the majority tech firm owned by Dell. All sides continue to negotiate the eventual divestment of Dell ‘s holdings, but any deal will leave a deep relationship in place.
“We’re not selling VMware, we’re not looking for a buyer,” said Chief Executive Officer Michael Dell at a press conference. “We’re looking at taking the stock that Dell Technologys holds and delivering them directly to our shareholders. If we do this, it will simplify our financial structure and, as Pat said, unlock value to all shareholders,” he said, referring to VMware CEO Pat Gelsinger. Gelsinger said the discussions were also at an early stage.
The corporation said that any divestment would not take effect before September 2021, so that the sale will be tax-free. Although billionaire Michael Dell has spent the last five years growing his technology empire to move beyond personal computers and servers, he has recently attempted to unload investments in an effort to pay off corporate debt and raise the company’s stock valuation. As of July 31, the corporation reported $43.6 billion in long-term debt.
Since Michael Dell owns around half of his company’s share equity, he will directly own a large portion of VMware ‘s share if his company divested.