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NFV (Network functions virtualization)

Dell to Sell Software Assets for $2B – Report

Dell is on the verge of selling its software division for more than $2 billion to investment groups Francisco Partners and Elliot Management Corp, according to sources cited by Reuters.

The deal will cover nearly all of Dell Technologies (Nasdaq: DELL)'s software assets, according to a Reuters report, including information technology management business Quest Software Inc. and data security provider SonicWall Inc. (Nasdaq: SNWL).

Dell is apparently looking to improve its balance-sheet position after agreeing last October to spend $67 billion on data storage company EMC Corp. (NYSE: EMC), which owns a controlling stake in cloud-computing company VMware Inc. (NYSE: VMW).

A deal to sell software assets -- which could be concluded as early as this week, according to the Reuters report -- would come weeks after Dell agreed to sell consulting business Perot Systems Corp. (NYSE: PER) to Japan's NTT Data Corp. for a fee of about $3 billion.

Dell has also been able to raise about $112 million from a public listing of SecureWorks Inc. , a cybersecurity unit, in April.

For more on Dell and EMC, see:

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

Mitch Wagner 6/21/2016 | 4:57:50 PM
Re: Selling software? Yeah, the counterargument to my statement is that SOMEBODY'S got to keep making hardware. Why shouldn't it be Dell?
danielcawrey 6/21/2016 | 1:38:14 PM
Re: Selling software? I agree. Not sure the strategy on selling software assets. But Dell continues to be a huge player in hardware and cloud technology. They have to have a plan. I think they had a goal of streamlining, so these software assets were obviously not part of what's happening with the company going forward. 
Mitch Wagner 6/20/2016 | 12:57:01 PM
Selling software? Selling software? Software is where the vallue is. Hardware is becoming commodity nowadays. 

There's something I'm missing here. 

 
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