Dell. Purely You
Dell
Tagline
Net Worth
$41,800,000,000
Started in (City)
Round Rock, Texas
Started in (Country)
Unites State Of America
Incorporation Date
01st December, 1984
Bankruptcy Date
-
Founders
- Michael Dell
About
Dell is an American multinational IT corporation that produces, manufactures, restores, and maintains computers and associated goods and services. Named after its founder, Michael Dell, the firm is one of the biggest technology companies in the world, hiring more than 165,000 employees in the U.S. and around the world. It is one of the leading PC device firms in the world. Dell offers other manufacturers' personal computers (PCs), servers, data storage systems, network switches, applications, computer peripherals, HDTVs, cameras, printers, and electronics. The business is well known for its developments in supply chain management and electronic commerce, in particular, its direct-sales model and its "build-to-order" or "configure-to-order" approach to manufacturing—the distribution of individual PCs configured to consumer requirements. Since then, the firm has made additional investments in storage and networking services, intending to expand its portfolio from providing computers to supplying full solutions to business customers. Dell was listed as number 51 on the Fortune 500 ranking until 2014. It is the world's third-largest personal computer vendor with unit revenues as of January 2021, after Lenovo and HP Inc. Dell is the world's leading shipper in PC displays. Dell is Texas' sixth-biggest corporation in net sales, according to Fortune Magazine. It is the second-largest non-oil firm in Texas (behind AT&T) and the largest in the Greater Austin region. Since becoming private in 2013, the newly proprietary nature of the financial information forbids the firm from being ranked as Fortune.
Beginning
Dell traces its roots back to 1984 when Michael Dell founded Dell Computer Corporation, which at the time was a PC Restricted student at the University of Texas in Austin. The dorm-room group, headquartered, marketed IBM PC-compatible computers made from stock components. Dell dropped out of school to work on his small company full-time, after earning $1,000 in expansion—capital from his family. In 1985, the company created the first machine of its own design, the Turbo PC, which sold $795. PC's Limited has marketed its systems in national machine magazines for sale directly to customers and personalized each ordered unit according to a choice of choices. In its first year of operation, the company grossed more than $73 million. In 1986, Michael Dell introduced Lee Walker, a 51-year-old venture capitalist, as president and chief operating officer, to act as Dell's mentor and incorporate Dell's ideas for the company's growth. Walker was also instrumental in hiring members of the board of directors when the corporation was made public in 1988. Walker retired for health reasons in 1990, and Michael Dell recruited Morton Meyerson, former CEO and President of Electronic Data Systems, to turn the organization from a fast-growing medium-sized company into a billion-dollar business. In 1987, the company dropped the name of PC Limited to become Dell Computer Corporation and started to grow internationally. In June 1988, Dell's market capitalization increased from $30 million to $80 million from its initial public offering on June 22 of 3.5 million shares to $8.50 a share. In 1992, Fortune Magazine placed Dell Computer Corporation on the list of the 500 biggest corporations in the world, making Michael Dell the youngest CEO of Fortune 500 ever. In 1993, in addition to its own direct distribution platform, Dell intended to market PCs at major discount stores such as Wal-Mart, which would have produced an extra $125 million in annual revenue. Bain consultant Kevin Rollins urged Michael Dell to withdraw from these transactions, fearing that they would risk money in the long run. At best, the retail margins were small, and Dell left the reseller channel in 1994. Rollins will soon join Dell on a full-time basis and finally become President and CEO of the group.
Road to Success
Dell also owns separate businesses, such as VMware (80%), Pivotal Software, Secureworks, Virtustream, and Dell Boomi. On October 12, 2015, Dell announced its intent to acquire EMC Corporation, an enterprise software, and storage company, in a $67 billion transaction. It was labeled the "highest-valued tech acquisition in history". In addition to Michael Dell, Singapore’s Temasek Holdings and Silver Lake Partners were major Dell shareholders that supported the transaction. On September 7, 2016, Dell Inc. completed the merger with EMC Corp., which involved the issuance of $45.9 billion in debt and $4.4 billion common stock. The Dell Services, Dell Software Group, and the Dell EMC Enterprise Content Divisions were sold shortly thereafter for proceeds of $7.0 billion, which was used to repay debt. In October 2017, It was reported that Dell would invest $1 billion in IoT research and development. Dell Inc. had returned to private ownership in 2013, claiming that it faced bleak prospects and would need several years out of the public eye to rebuild its business. EMC was being pressured by Elliott Management Corporation, a hedge fund holding 2.2% of EMC’s stock, to reorganize the unusual "Federation" structure, in which EMC’s divisions were effectively being run as independent companies. Elliott argued this structure deeply undervalued EMC’s core "EMC II" data storage business, and that increasing competition between EMC II and VMware products was confusing the market and hindering both companies. The Wall Street Journal estimated that in 2014 Dell had revenue of $27.3 billion from personal computers and $8.9 billion from servers, while EMC had $16.5 billion from EMC II, $1bn from RSA Security, $6bn from VMware, and $230 million from Pivotal Software. EMC owned around 80% of the stock of VMware. The acquisition-maintained VMware as a separate company, held via a new tracking stock, while the rest of EMC were rolled into Dell. The acquisition required Dell to publish quarterly financial results, having ceased these ongoing private in 2013. Dell Technologies has products and services in the field of scale-out architecture, converged infrastructure, and private cloud computing. On January 29, 2018, it was reported that Dell Technologies was considering a reverse merger with its VMware subsidiary to take the company public. On December 28, 2018, Dell Technologies became a public company, bypassing the traditional IPO process by buying back shares that tracked the financial performance of VMware. Digital and IT transformation have gained momentum, owing to the influx of new-age technologies, and resulting in the generation of a vast amount of data. Currently, uncertainties have compelled employees to work-from-home, accelerating the adoption of connected devices and solutions. Hence, data has become more divergent, as it is now created, processed, and saved on various platforms. Against this backdrop, the onus now rests on the IT team of an organization to manage this massive amount of data efficiently. Ultimately, what is required is a new architecture and approach to storage infrastructure. And when it comes to the modern storage appliance designed for this data era, the Dell EMC PowerStore family leads the way. Leveraging this platform, organizations can unleash the power of data irrespective of its structure and location. This groundbreaking platform puts an end to traditional tradeoffs in performance, scalability, and storage efficiency owing to its data-centric, intelligent, and adaptable infrastructure. More importantly, this infrastructure holds the potential to transform and mobilize both traditional and modern workloads of an organization.
Challenges
Weaving another innovation to an existing modern data center portfolio is the uniquely adaptable infrastructure platform, PowerStore complements, which also extends the current investments of all customers. Bringing the advantages of both high-end storage hardware and the simplicity and flexibility of modern software design together paves the way for organizations to evolve their IT infrastructure so that they can stay relevant in today’s fast-changing world. Leveraging Dell EMC PowerStore’s unique architecture and intelligent automation, Boston Scientific, a manufacturer of medical devices, was able to use its resources as efficiently as possible while ensuring its readiness to scale compute and storage when required. The PowerStore technology has made a huge impact on its business about clustering capabilities, empowering Boston Scientific to increase the number of computing and storage resources to the cluster. Further, the company was able to lessen its IT footprint, which helped in reducing its hardware acquisition, management, and maintenance. Features that make PowerStore unique are as follows. Data-centric design: With PowerStore, organizations now can simplify their IT infrastructure. Thanks to its scale-up, scale-out architecture for block, file, and VMware vols, this platform can easily go with a vast range of traditional and modern workloads. Intelligent automation: While end-to-end automation can streamline IT and DevOps, its built-in machine learning can optimize resources, and smart monitoring lessens risk and predicts requirements. Adaptable architecture: Speed and workload mobility ensure choice, predictability, and investment protection AppsON: AppsON is a game-changing feature in PowerStore. It is mainly an industry-first capability that enables VMware virtualized workloads to run directly on the purpose-built array, thereby providing top-notch application mobility and flexibility. Performance optimizer: NVMe all-flash or Storage Class Memory (SCM) with Intel Optane optimizes performance. The end-to-end NVMe design is up to 7X faster with up to 3X better response time. Intelligent scale up and scale out: Enables in adding compute or capacity independently. Expanding the capabilities of the initial PowerStore configuration is simple and extremely efficient, as capacity and performance may be scaled independently. “Always on” data reduction with Intel Quick Assist: Lowers costs and improves efficiency without compromising performance. With this game-changing platform, customers can also enjoy some exclusive benefits. PowerStore comes under the Dell EMC Future-Proof Program. This program provides more choice, predictability, and of course, investment protection through the new Anytime Upgrades, the industry’s most flexible controller upgrade program. It enables customers to increase their PowerStore capacity and performance after 180 days. So, it is now expected that the combined power of Anytime Upgrades and Dell EMC PowerStore’s adaptable architecture will soon make disruptive platform migrations a thing of the past. With PowerStore, organizations can simplify and modernize their IT infrastructure without adding another management silo. They can also accelerate decision-making, data access, and application performance, backed by the power of emerging technologies. More importantly, their IT teams can leverage current skillsets while investing confidently in the future.
Failures
In 2005, though profits and revenues continued to increase, sales growth declined considerably and the company's stock lost 25% of its value that year. By June 2006, the stock traded below US$25, which was 40% less than the high-water mark of the firm in the post-dotcom period in July 2005. The declining revenue growth was due to the mature PC industry, which accounted for 66% of Dell's sales, and analysts indicated that Dell wanted to make inroads into non-PC sector markets such as storage, services, and servers. Dell's pricing edge was linked to its ultra-lean production of desktop PCs, but this became less significant as discounts became more difficult to find within the company's supply chain, and as rivals such as Hewlett-Packard and Acer rendered their PC manufacturing processes more competitive to meet Dell's conventional price differentiation. Across the PC market, price reductions along with corresponding improvements in efficiency meant that Dell had fewer chances to upgrade its clients. As a result, the firm sold a larger proportion of low-cost PCs than before, which eroded profit margins. The laptop segment was the fastest-growing PC market, but Dell manufactured low-cost notebooks in China, like other PC producers, which eliminated Dell's cost advantages in manufacturing, plus Dell's dependence on Internet sales meant that it lost growing notebook sales in big box stores. CNET indicated that Dell was stuck in the increasing commoditization of high-volume low-margin computers, which stopped Dell from delivering more exciting products that customers wanted.
Achievements
- World’s Most Ethical Companies 2020
- HRC Best Places to Work 2019
- Fast Company’s World’s Most Innovative Companies in 2019
CEOs
- Michael S. Dell