Dell

While PC demand has seen a boost, businesses have become cautious in major data center equipment purchases.

Dell's efforts to refresh its PC lineup as users do more computing at home have paid off, while the pandemic-fueled recession has reduced corporate demand for data center hardware.

A key part of the negotiations will center on a commercial agreement between Dell and VMware that would formalize aspects of its current working relationship.

Dell surged 12% following a report that it was mulling a spinoff of its 81% stake in VMware.

A Secureworks takeover would be a departure from Dell’s earlier plan to sell its stake in the company, sources told Bloomberg.

The move signals that geopolitical and trade tensions have dented corporate demand for servers.

HPE, Dell, Cisco report slowing hardware sales amid uncertainty caused by trade disputes among other tensions.