![]() Michael Dell founded Dell Computer Corporation, doing business as PC's Limited in 1984 while a student at the University of Texas at Austin, operating from Michael Dell's off-campus dormitory room at Dobie Center. ![]() History Michael Dell (founder)ĭell's logo used before the acquisition of EMC, used from 2010 to 2016, continued to be used on some products until early 2018 Founding and start-up Dell EMC sells data storage, information security, virtualization, analytics, and cloud computing. Dell and EMC became divisions of Dell Technologies. In 2015, Dell acquired the enterprise technology firm EMC Corporation. It is the second-largest non-oil company in Texas. It is also the sixth-largest company in Texas by total revenue, according to Fortune magazine. Dell is ranked 31st on the Fortune 500 list in 2022, up from 76th in 2021. It is the third-largest personal computer vendor as of January 2021. ĭell is a subsidiary of Dell Technologies, Inc., a publicly traded company ( Nasdaq: DELL), as well as a component of the NASDAQ-100 and S&P 500. It is now expanding from offering computers only to delivering a range of technology for enterprise customers. The company has expanded storage and networking systems. Dell then entered the market for IT services. Dell was a pure hardware vendor until 2009 when it acquired Perot Systems. This includes Dell selling directly to customers and delivering PCs that the customer wants. The company is known for how it manages its supply chain and electronic commerce. ĭell sells personal computers (PCs), servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, and electronics built by other manufacturers. Dell is owned by its parent company, Dell Technologies. It develops, sells, repairs, and supports computers and related products and services. VMware’s most recent earnings release notes that it had $4.715 billion in “total cash, cash equivalents and short-term investments.” Perhaps its shareholders aren’t enthused at the prospect of levering VMware’s balance sheet to help Dell do the opposite.Dell Inc. Dell investors are more excited about the transaction than VMware shareholders, with the latter company’s stock is up a more modest 1.4%. And with Dell bloated in debt terms and, perhaps, in product scope as well, the VMware deal could be an intelligent way forward. The company has been open about its intention to shake up its broader corporate structure. That includes garnering a favorable ruling from the IRS that the deal qualifies for a tax-free spin-off, which could prove to be a considerable hurdle for a deal like this. The deal is expected to close at the end of this year, but it has to clear a number of regulatory hurdles first. Unpacking how Dell’s debt load and VMware stake could come togetherĮven when it was part of EMC, VMware had a special status in that it operates as a separate entity with its own executive team and board of directors, and the stock has been sold separately as well. The company intends on using parts of its proceeds to deleverage, writing in a release that it will use “net proceeds to pay down debt, positioning the company well for Investment Grade ratings.” By that it means that Dell will reduce its net debt position and, it hopes, garner a stronger credit rating that will limit its future borrowing costs. Finally, there is a formalized governance process in place related to achieving the commercial goals under the agreement, so it’s pretty firm that these companies will continue to work closely together at least for another five years.įor its part, VMware said in a separate release that the deal will allow it “increased freedom to execute its strategy, a simplified capital structure and governance model and additional strategic, operational and financial flexibility, while maintaining the strength of the two companies’ strategic partnership.”ĭell shares are up more than 8% following the announcement. In addition, there is a plan to sell VMware products through the Dell sales team and for VMware to continue to work with Dell Financial Services. There is a five-year deal commercial agreement in place with plans to revisit that deal each year thereafter. In a presentation to investors, the companies indicated that the plan to work together is more than lip service. Dell will remain as chairman of both companies. ![]() While there is a fair amount of CEO speak in that statement, it appears to mean that the move is mostly administrative as the companies will continue to work closely together, even after the spin-off is official.
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