Hopkinton uneasy over EMC acquisition
It would be the largest acquisition in the history of the technology sector, but for locals, the bigger story is what's ahead for EMC's Hopkinton operations when Dell acquires the data-storage giant for $67 billion.
Despite Dell's statements about the bright future of Hopkinton's largest taxpayer, there is significant anxiety about the future of EMC's local workforce, said Paul Joseph, president and CEO of the Framingham-based MetroWest Chamber of Commerce.
Joseph predicted a year or two of uncertainty, but speculated that, given the sheer size of the Hopkinton operations and the importance of the local workforce, Hopkinton will remain intact for the foreseeable future.
“In the short term at least, I don't see how they can't keep that going,” Joseph said.
Massachusetts roots
Founded in Newton in 1979, EMC moved headquarters to Natick in 1983 before eventually settling in Hopkinton in 1987. The main building of the campus is located at 176 South St., but according to the Hopkinton Treasurer/Collectors office, EMC pays taxes on 18 properties in town for a total of about $2.5 million in real estate taxes.
All told, EMC employs 9,600 in Massachusetts and 70,000 worldwide. In addition to Hopkinton, EMC has local offices in Franklin, Marlborough, Milford and Southborough.
Joseph, a former business owner in the software sector who has interacted with Dell professionally, said the company is surely going through a rationalization process as it evaluates EMC's workforce and how it jibes with Dell's plans for the future.
Cost synergies
In a conference call from Hopkinton with industry analysts and reporters on Oct. 12, Dell CEO Michael S. Dell answered a Boston Globe columnist's question about the impact of the deal on Massachusetts operations. Michael Dell said his company is “planning to put our server business into the EMC enterprise data center business,” bringing the Hopkinton facility's revenue to a $30-billion business.
In response to a request for further comment, EMC spokeswoman Katryn McGaughey said “keeping EMC's existing business headquartered in Hopkinton, and adding to it Dell's server business, underscores Dell's commitment to our Massachusetts-based business and employees. EMC will become a major center of gravity for one of the largest pieces of Dell's business.
Dell didn't rule out job losses, saying in response to a question from a Bloomberg reporter that there would be cost synergies and other moves as part of the normal course of business, aimed at making the company strong, innovative and responsive to customers.
If there is fallout, Joseph said he prefers to look on the bright side. Other major technology employers, such as Digital Equipment Corp. and Hewlett Packard in Marlborough have ceased operations over the years, leaving large swaths of qualified employees in their wake.
“It's also an opportunity for growth. In the longer term, you see other regional employers looking for technology talent, the talent pool opens up,” Joseph said.
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