Spring-cleaning is happening, and not just in your parents’ garages; tech company EMC plans to sell its Documentum business before merging with Dell later this year. Shedding of such assets may be an attempt to reduce the burdensome pending debt that comes alongside the $67 billion price tag of joining forces.
Many sources feel this is a good move for Documentum, as there wouldn’t be an appropriate slot on Dell’s roster for it to truly thrive. This would become even more apparent post EMC/Dell merger, because the two will create more of a computer hardware/data center model, leading it away from Documentum’s core competencies.
An Internal Rift
The leaders in this deal have to consider what is best for the overall convergence of two separate companies. By ridding EMC of Documentum, they are hoping to smooth the transition. It has been said that there were stark differences between EMC headquarters customers and Documentum enthusiasts. If such a cultural divide existed between the two groups that they had separate conferences, held on separate floors, during EMC World, wouldn’t this put even more of a strain on the merger? It appears that way.
What Are the Drivers?
Some outsiders may believe that EMC is selling Documentum to get a few more bucks in their pockets before the big merger with Dell later this year, but maybe there is more to it. Perhaps the unfulfilled hopes that EMC had for Documentum upon their acquisition of the company in 2003 simply became too much to hold onto. After all, they bought VMware at the same time, but Documentum did not seem to be able to keep up. As CMS Wire put it, “VMware was, and still is, EMC’s golden child, Documentum was its forgotten son that never really found its stride within EMC.” Ouch. Obviously Documentum did not fully flourish and grow under the shade tree of EMC; should everyone abandon hope for the company? Only time will tell. Some believe that Documentum is and can be a “good and healthy business”, while others are not as optimistic. Perhaps it just wasn’t the right place or right time to fulfill its potential. Simply put, Documentum is no longer a strategic fit for EMC (or what EMC is about to become).
Where To, Now?
If it can’t live at home anymore with EMC, where can Documentum plant its own roots? This highlights the potential instability of Documentum and it’s future, leading many to wonder if other platforms will be a better fit for their organization. Perhaps you are in this camp? KnowledgeLake has helped numerous customer in transitioning off of the Documentum platform. Check out this webinar that features Tyson Foods’ move to SharePoint from Documentum, assisted by KnowledgeLake.
Get a Free Migration Assessment