Dell recently announced an agreement to acquire EMC and, with it, control of VMware in a deal valued at $67 billion at the time of the announcement. While analyses of the deal so far have been devoted to the (more straightforward) implications for the computing, storage, and networking industries or the (less straightforward) financing of the transaction, analyzing these threads together reveals a far more interesting story:
This is the first, big, over $50 billion transformative deal that we believe points the way to the future of many large public incumbent technology companies.
Many tech industry incumbents are stalling — in revenue growth, in investor interest, in strategic position — and something has to give. This deal is a new way for something to give.
How Dell and EMC put this deal together is interesting, as a lot of experts thought a buyout deal of this size could never happen — and certainly not in technology. The sheer size as a leveraged buyout is unprecedented. The amount of debt used to finance the deal is staggering. And all three companies involved were already incredibly complex — not just in their organizational and business structures, but in their ownership and capital structures as well.

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