US tech giant Dell EMC, which operates centers in Herzliya and Beersheva, is laying off dozens of employees in its data protection division in Israel, sources inform "Globes." The company is moving its data protection business out of Israel.
The company confirmed the layoffs, saying, "Like any global tech company, Dell EMC assesses the activity on its sites from time to time. In order to ensure a high level of cooperation and innovation by bringing together groups performing the same activity that are currently deployed among a number of sites around the world, it was decided that a number of data protection jobs would be transferred from the company's sites in Israel to other sites around the world working in the same or similar spheres. We are now trying to find suitable jobs on the company's sites for our employees affected by this decision."
Dell EMC's operations in Israel are spread over four sites (in Beersheva, Herzliya, Glil Yam, and Haifa), and involve development, sales, and services. The company has an array of business partners in the enterprise, business, and consumer markets. Lior Pony leads the activity of Dell EMC's sales, services, and support organization, and Dan Inbar leads its development activity. Inbar also leads the company's global storage activity.
The development center in Israel specializes in advanced storage technologies (flash storage), duplication and retrieval of highly available information, cybersecurity, big data, cloud computing, and data science. A cybersecurity solutions division is active in the development center in Israel at the Herzliya and Beersheva sites, providing cybersecurity solutions based on development in Israel integrated with Dell-EMC's portfolio solutions.
Dell EMC has a history of acquiring technology startups in Israel and merging them with its development center. Since 2006, the company has paid $1 billion to acquire over ten startups. Dell EMC also invests extensively in Israeli startups through its corporate investment fund, led by Yair Snir.
In recent years, computer manufacturer and marketer Dell EMC has diversified its products through mergers and acquisitions, funded by taking tens of billions of dollars in debt, among other things. This has turned a company formerly based on computer sales to one with a broad line of products, including servers, security products, and cloud infrastructure (launched in May 2019). The most recent major activity in mergers and acquisitions was in 2016, when Dell acquired data storage company EMC for $67 billion. This deal also included network virtualization technology pioneer VMWare, in which EMC held an 82% stake.
"Globes" recently reported that by becoming a leading enterprise communications infrastructure market player, on top of its leading position in the PC market, Dell EMC had significantly strengthened the company's business model. This model was designed to position Dell EMC as a preferred supplier in the dynamic communications market, which is moving to the cloud.
Published by Globes, Israel business news - en.globes.co.il - on February 4, 2020
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