Linked by Thom Holwerda on Tue 5th Feb 2013 14:29 UTC
Hardware, Embedded Systems "Dell today announced it has signed a definitive merger agreement under which Michael Dell, Dell's Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake, will acquire Dell." So, Dell has gone private, and Microsoft has contributed a $2 billion loan to the deal.
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Comment by dizmal
by dizmal on Tue 5th Feb 2013 15:28 UTC
dizmal
Member since:
2009-04-22

A week ago, i read blog entry in monday note about dell buyout. There were speculations about this from last month.
http://www.mondaynote.com/2013/01/27/dell-buyout-microsofts-generos...
http://www.techspot.com/news/51355-dell-wants-to-go-private-at-13-t...

in short the premise of Jean-Louis Gassée article is:
"Dell wants to go private because it plans to alter its business model in ways that would scare nervous, short-term Wall Street shareholders [...] Dell no longer likes its legacy PC business and has made efforts to reposition itself as an enterprise player (expensive iron, software and services). Going private will allow it to perform the needed surgery, stanch the bleeding, and reemerge with a much stronger income statement, rid of low-margin commodity PCs."

Reply Score: 5

RE: Comment by dizmal
by JAlexoid on Tue 5th Feb 2013 16:19 in reply to "Comment by dizmal"
JAlexoid Member since:
2009-05-19

A lot less management overhead added for that.

Reply Parent Score: 2

RE: Comment by dizmal
by WorknMan on Tue 5th Feb 2013 17:18 in reply to "Comment by dizmal"
WorknMan Member since:
2005-11-13

Dell no longer likes its legacy PC business and has made efforts to reposition itself as an enterprise player (expensive iron, software and services).


Isn't that kind of what tech companies do when their PC business goes to shit... become an 'enterprise company'?

Reply Parent Score: 6

RE: Comment by dizmal
by tkeith on Tue 5th Feb 2013 20:12 in reply to "Comment by dizmal"
tkeith Member since:
2010-09-01

in short the premise of Jean-Louis Gassée article is:
"Dell wants to go private because it plans to alter its business model in ways that would scare nervous, short-term Wall Street shareholders [...] Dell no longer likes its legacy PC business and has made efforts to re-position itself as an enterprise player (expensive iron, software and services). Going private will allow it to perform the needed surgery, stanch the bleeding, and reemerge with a much stronger income statement, rid of low-margin commodity PCs."



Why not get out of "commodity" computers, but still make PCs. Kind of like Apple only makes a few difference models, with minor addons. Make a low end model with no options for people looking for something cheap, a midline model with a few options and a workstation. It would cut overhead and still allow you to have an option for a company that wants to get everything from one place.

Not disagreeing with you, just adding to your comment.

Reply Parent Score: 2

RE: Comment by dizmal
by delta0.delta0 on Tue 5th Feb 2013 23:03 in reply to "Comment by dizmal"
delta0.delta0 Member since:
2010-06-01

Ok, but here is the rub,

They are a huge vendor of server hardware to Linux based environments. In fact most of the web based start ups I see here in the UK seem to be a Linux shop and they all tend to go with Dell Servers, the larger / older organisations tend to go with HP Servers.

From a desktop arena I can understand Microsoft investing in Dell, but for a business shifting to servers and services, I don't understand the Microsoft involvement, in fact I don't understand why Dell would ever allow it, as the server arena is definitely not dominated by Microsoft or Windows.

Will Microsoft now play a heavy hand in the server buying process ? will they try to force windows only kit ? a windows desktop only software front end to all dell server hardware control ? or windows licenses with Hardware ?. Or will it be a case of just plastering the site with Dell recommends Windows ?

$2 billion of 24 is 8.3% nearly 10% which is a pretty heavy investment, especially if Dell intends to move out of the desktop market entirely.

Reply Parent Score: 3