Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Enterprise I.T.
Register for a certification exam.
Average Rating:
Rate this article:  
Buyout Completed, Dell Aims at the Enterprise with Its PCs
Buyout Completed, Dell Aims at the Enterprise with Its PCs

By Barry Levine
September 13, 2013 10:46AM

    Bookmark and Share
Analyst Laura DiDio said that in a global survey about reliability, Dell was ranked No. 1 in product performance and technical support. DiDio said Dell servers are commonly known as workhorses that last beyond their payback periods. Additionally, Dell has become known for its "very aggressive" pursuit of reduced carbon footprints and other environmental-friendly efforts.
 



Whither Dell? That's the question being asked, most likely in other wording, following the news Thursday that the company's shareholders approved a buyout proposal to take the company private.

The $25 billion buyout by company founder Michael Dell and investment firm Silver Lake Partners will award each shareholder $13.88, of which $13.75 is for the common stock and the balance of 13 cents represents a special dividend. After 25 years as a publicly traded company, the buyout means that management will no longer have to answer to Wall Street as it tries to reshape itself to match the changed computing market.

The buyout plan succeeded over staunch opposition from some shareholders, including activist investor Carl Icahn, who repeatedly said that the price sought by Dell and Silver Lake Partners undervalued the company.

Continuing in PCs

Dell, who will now own 75 percent and will remain as company chairman and CEO, said in a statement that he was "pleased with this outcome and am energized to continue building Dell into the industry's leading provider of scalable, end-to-end technology solutions." He told analysts after the announcement that the company will look to "go back to our roots, focusing on the entrepreneurial spirit that made it one of the fastest-growing and most successful companies in history."

Dell the company made its name in the PC market, but has suffered as the world of personal computing moves away from PCs. Gartner, for instance, has reported that demand for PCs dropped 11 percent in the second quarter, only the latest of a series of declines. But Dell CFO Brian Gladden told news media that his company will continue in the PC market.

Laura DiDio, an analyst with Information Technology Intelligence Consulting (ITIC), pointed to several strengths that the company can build on. She noted, for instance, that in a survey conducted by her company about storage systems for businesses, 32 percent of respondents favored Dell's solutions, with EMC coming in second.

'Two-Pronged Strategy'

She also said that in an ITIC global survey about reliability, Dell was ranked No. 1 in product performance and technical support. DiDio noted that Dell servers are commonly known as workhorses that last beyond their payback periods. Additionally, Dell has become known for its "very aggressive" pursuit of reduced carbon footprints and other environmental-friendly efforts, she said.

These brand assets, including reliability, durability and greenness, among others, can serve as some of the building blocks for Dell to differentiate itself in the crowded computing marketplace, DiDio said.

To succeed long-term, of course, Dell will have to offer new products and services. For the business market, DiDio said, that will likely mean the company will get more deeply into services, "just as IBM did, even as Michael Dell pursues a two-pronged strategy" that continues to go after consumers.

In Dell's case, the target for services is mostly small- and medium-size businesses. This is a direction the company has been moving in, along with corporate software, but it now has to step up its game. In August it reported $14.5 billion in revenue for its second quarter, which represented a whopping 72 percent drop in net income.
 

Tell Us What You Think
Comment:

Name:



Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.


 Enterprise I.T.
1.   BlackBerry BES 10 Now Hosted
2.   Teaming Up: CIOs, IT Asset Managers
3.   Juniper DDoS for High-IQ Networks
4.   IBM Rolls Out Hybrid Cloud Services
5.   Windows 7 Ends Mainstream Support


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
IBM Rolls Out Hybrid Cloud Services
Based on SoftLayer net infrastructure.
Average Rating:
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.