EMC Eyes Growth, Not Layoffs

Dell's $67 billion takeover of MA data storage giant to add major business headquarters in Hopkinton

What Susan Maynard of Hopkinton, Massachusetts, worries about with Dell's $67 billion takeover of EMC Corp. is what everyone who's seen the aftermath of corporate megamergers worries about: cutbacks and job losses.

"I hope that everything stays the same up on the hill here, that no one loses their jobs and no one gets uprooted," Maynard, who works at a wine shop a half-mile from where thousands of EMC's employees are based, said in an interview Monday afternoon.

But EMC's information infrastructure ceo, David Goulden, said EMC's 9,700 massachusetts employees -- and the economy they sustain -- don't need to worry about layoffs.

"That's not what this combination is all about. This combination is about driving growth," Goulden said in an interview Monday. "It's not about moving jobs. We haven't gotten into that level of detail. Nor do I expect there'll be many movements of locations at all."

Goulden said Dell's plan is to make Hopkinton the headquarters of a $30 billion dollar a year business selling giant technology packages to big companies.

"Here, Boston/Hopkinton, we will be the center of gravity for the combined enterprise systems business. That combined business is about double the size of the business that we have here right now. So immediately we double and the combined business will be an over $30 billion business coming out of the gate," Goulden said. The vision behind the deal is for a combined Dell and EMC to become a "market leader in desktops and mobile devices. Market leader in storage. Market leader in converged infrastructure. Market leader in server technology. Market leader in virtualization."

"It's a very complementary fit. So together we'll be an 80 billion dollar enterprise with a huge range of capabilities," Goulden said.

Dell is offering about $33.15 per EMC share, including the value of a "tracking stock" that reflects the value of VMWare, a storage software company in which EMC controls an 80 percent stake.

Chuck Loewy of Framingham, Mass., formerly worked for EMC and said: "I'm sure there'll be some cutbacks in some areas but in terms of the direct impact to this area, Hopkinton, I don't see that happening. I think it's going to be more distributed worldwide in sales and service."

Dan Murphy, chief marketing officer for Embotics, an Ottawa cloud computing company that recent located an office in Boston, said both Dell and EMC face huge challenges defending and evolving beyonf the computer and storage businesses they have now. "They're in a stormy sea right now where they're under tremendous pressure by low cost alternatives and big companies like Amazon" and its provision of data storage and other corporate services from its server farms, Murphy said.

Murphy doesn't envy the 80 billion dollar merger challenge awaiting Dell's leaders. "The real determination of whether this will be successful is how do you figure out the complexity and challenge when you have 2 companies that are just so large. And when you think about complexity and delays it's kind of the enemy to innovation and speed."

With videographer Tony Sabato 

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