×

VMware CEO expects company growth from Dell-EMC deal

Squawk Alley's Jon Fortt sat down with VMware's CEO Pat Gelsinger to discuss the short- and long-term effects of Dell's $67 billion acquisition of EMC on his business.

Gelsinger shared that entering into the first quarter, the company saw "good momentum through [its] products and technologies" and described the mobile space as a "hot space" for the company.

To add to that momentum, Gelsinger considered the Dell deal a potential accelerant to VMware's growth.

He is confident the company will maintain its "independence and ecosystem."

This "mega-move" as Gelsinger called it, fits into the same framework as Microsoft's recent acquisition of LinkedIn. He highlighted the importance of LinkedIn not only being a strategic and cultural fit, but also an "integration" fit.

Gelsinger said his company has a great reputation of executing successful integration tactics, which will prove useful in light of Dell's recent purchase.

According to Gelsinger, the deal has gone "very smoothly," but the announcement took many by surprise.

"When the deal was announced ... everyone stopped in their tracks. Is this going to allow us to continue VMware ... ? Pretty quickly, people got over the logic of the deal and got back to business."

Getting back to business seems to be habit for VMware as shares for the software company have steadily increased 8.75 percent YTD. The deal is expected to close by next quarter.

VMware specializes in mobile device management and security, competing and cooperating with the likes of Microsoft.

VMW YTD