EMC Warns Of 'Difficulty Managing' Move Into SMB Channel, Gross Margins May Be Negatively Impacted

#EMC is warning investors that a push into the small and mid-size business channel once it is acquired by #Dell could adversely affect its business. In a recent filing with the U.S. Securities and Exchange Commission, EMC, which says it does about 60 percent of its business through the channel, is predicting that an increased reliance on channel partners "may negatively impact" gross margins.  "As we focus on new market opportunities and additional customers through our various distribution channels, including small-to-medium sized businesses, we may be required to provide different levels of service and support than we typically have provided in the past," EMC said in the filing. "We may have difficulty managing directly or indirectly through our channels these different service and support requirements and may be required to incur substantial costs to provide such services, which may adversely affect our business, results of operations or financial condition." #DellTechnologies #Dell

http://m.crn.com/news/channel-programs/300081646/emc-warns-of-difficulty-managing-move-into-smb-channel-gross-margins-may-be-negatively-impacted.htm