As day two of Dell World 2015 kicked off, John Furrier and Dave Vellante, cohosts of theCUBE, from the SiliconANGLE Media team, began the day trying to absorb all the announcements and big moves happening at the show and making an effort to achieve an understanding of what the impact on the ecosystem and technology at large will be.

Furrier kicked the segment off by saying, “I like this deal because I like the guts of Michael Dell, the way he is standing up and putting the entrepreneurial 5.0 … but he is really taking the bull by the horns and going for it.”

Losing street cred

However, he pointed out that the ramifications of the deal are significant with a drop in VMware, Inc. stock to the tune of $10 billion in value, roughly 20 percent. He considers this an indicator of the public market’s lack of understanding and confusion about the deal. He stated that EMC brings a great deal to the table and calls it a reverse merger.

“EMC is going private through a Dell vehicle,” Furrier said. Yet there is still much confusion about how all the key companies will align.

Vellante views the stock drop as a result of a few things that are confusing the “Street.” First, he noted, “VMware guided lower and Wall Street is just punishing anyone moving lower,” continuing by pointing out that there are a number of companies experiencing this effect.

Secondly, Vellante pointed to an announcement made by EMC and VMware on October 20, regarding the creation of a new cloud services business operating under Virtustream, Inc. VMware and EMC will jointly own the business 50:50. Lastly, Vellante feels that the potential Pivotal IPO may be coming into play as investors see a company with three different cloud business units.

#confusion

theCUBE cohosts then sliced and diced the various cloud businesses along with the competition, speculating on the reasoning behind the mass confusion. Furrier closed out the segment by saying, “There is a lot of positive feedback, as well as a lot of questions.”

Watch the full interview below, and be sure to check out more of SiliconANGLE and theCUBE’s coverage of Dell World 2015. And join in on the conversation by CrowdChatting with theCUBE hosts during Dell World 2015.

Photo by SiliconANGLE