[wcarss]

The Dell/EMC purchase may have been just to buy and then sell VMware, which EMC owned. If I recall correctly, EMC and VMware had both lost meaningful value after uniting and it was commonly held that VMWare was worth much more, so Dell is likely try to rip those two apart, pump VMware back up, sell it at a profit on the whole EMC purchase, and keep the EMC assets as gravy.

One sign of this occurring is the aggressive layoffs VMWare initiated of its cost centres (e.g. in support) soon after the purchase.

[illumin8]

I agree with your speculation; it seems likely, however, I don't understand why laying off staff at VMware would help make the company stronger - is it just supposed to make the balance sheet look good in the short term?

Short-term results oriented layoffs like this decimated HP under Carly Fiorina, and I don't have a good long-term outlook on VMware, if Dell decides to take a similar approach.

[wcarss]

My understanding is that it is purely to improve the short term outlook on paper.

I agree that it does not seem wise for the actual health of the entity.