I’ve watched the history of Dell closely over the last several years. Several of the companies Dell recently acquired, principally Quest Software, are familiar names to some of my clients. I’ve also listened to several of Dell’s most recent quarterly earnings reports and supported some of the notions management presented in these meetings.
But Dell did not schedule a quarterly earnings report for the last fiscal quarter, so those periodic management presentations came to an abrupt end. I have to say, coincidentally, I also lost interest in the company. I find it hard to follow businesses with a history of missing on objectives. Recently I had to place Dell in this group.
So when I read an article in the online edition of the New York Times, on Thursday, September 12, 2013, Dell Shareholders Approve $24.9 Billion Buyout (http://dealbook NULL.nytimes NULL.com/2013/09/12/dell-shareholders-approve-24-9-billion-buyout/?ref=technology&_r=0), I came away with the thought this buyout, worst case, may prove to be no more than a means of buying time on a business plan with an ambiguous objective, going nowhere.
As Michael J. De La Merced and Quentin Hardy note in this article, “Mr. Dell has not given detailed plans for how he hopes to bring his company into the modern tech world, though he has already spent $13 billion on acquisitions, primarily software and networking companies, to build a cloud business aimed primarily at small and medium-sized businesses, long a core market for Dell.” (Quoted from an article published on the New York Times website on Thursday, September 12, 2013. I’ve provided a link to the article above), I silently noted, “what else is new? After all, these acquisitions began a long time ago. Now, after over 10 years of acquiring, digesting and integrating market leading businesses into the Dell pantheon of technology offerings, it can no longer be acceptable not to have a plan of “where we’re going”.
Of most importance, regardless of whether the company operates privately, or as a public company, there is still an imperative to make money, if for no other reason than to grow the business. So we all could use a better idea about how Dell plans on replacing lost dollars from shrinking sales of PCs, laptops, servers with seats on cloud offers.
Ira Michael Blonder (https://plus NULL.google NULL.com/108970003169613491972/posts?tab=XX?rel=author)
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