There was a time -- one that must baffle those still on the happy side of their first boom-bust tech cycle -- when Dell, Hewlett-Packard, and Intel ruled the tech world. While they're all still alive and kicking, they're not setting the pace, and the moves they make over the next year or two are critical.
All three companies have good reason to be proud of the contributions they've made to technology. But they have made some questionable decisions trying to extend their run at the top of the tech food chain, and Intel and HPE decided this week to cut some of those losses.
Intel sold a controlling stake in Intel Security, offloading the unitformerly known as McAfeefor $4.2 billion after acquiring it for $7.6 billion in 2011. HP sold $8.8 billion worth of software assets, with
CEO Meg Whitman telling The New York Times "there are elements of our world that are shrinking."
That might be an understatement. But Intel and HP's gambles on security and software pale in comparison to what Michael Dell is going to try and pull off, now that the historic $67 billion acquisition/merger of EMC and its associated companies is complete. It's really hard to see how this merger can end any other way but badly, which makes it all the more fascinating. (
The Next Platform has a good overview of how Dell will try and pull this off.)
Intel is in the best position to have an outsized impact in this new world, having shed decades of orthodoxy about chip design and manufacturing to embrace a more flexible business model that listens to its customers. HPE lacks a compelling story outside of
its mysterious "Machine" project; I've been cracking up for weeks at the overly dramatic and unintentionally hilarious ads for its security services shown before Season 1 of Mr. Robot on Amazon Prime, and it just sold that division. And the new Dell Technologies, well, we're going to have to wait a bit to see how that goes.
There are only a handful of companies that have navigated multiple transitions in computing across decades, and fewer still that have thrived amid those changes. As the pace of change gets faster and faster, that's not likely to change.