Dell computer buyback

Graham_Devon

Find this interesting...

Michael Dell is to purchase Dell under a buyback, and remove it from the stock exchange.

The idea is to save the company as it faces pressure to deliver more and more to the stockmarkets, and focus on the business and, ultimately, keep it alive.

Dell has been struggling for a while now, influenced by shareholders, and losing it's focus on its core company.

The stockmarkets themselves have been the ultimate goal for many business, but looking at Apple recently and the pressure thats facing for more growth, Dell and this buyback, and also facebook and how that's suffered in response to shareholder demands, could the stockmarket, and it's need for continual growth, actually be damaging business?

http://www.bbc.co.uk/news/business-21342632

wymondham

I hope it improves their service. I had a call on a server a while ago which went ok, but I then had 8, yes 8 phone calls from Dell asking me how their service had been. I started saying good but by the last one I was making things up!!

kabayiri

I guess this will give Dell greater freedom to seek state subsidy from states desperate to retain jobs.

..like this example
http://www.goodjobsfirst.org/states/north-carolina

That's not the only time Dell has sought subsidy, and not just on their native soil either.

ruggedtoast

I understood floating on the stockmarket was a way to make the original owners a shirt load of cash, and then make the appointed execs a shirtload of cash, and then to make the shareholders small amounts of cash with large amounts of risk, and for the employees to be cynically laid off and their jobs outsourced to China.

Has this paradigm not worked properly with Dell?

System

Dell seem to be losing out to Citrix lately. Large companies don't want a physical PC on every desk anymore, everything is going virtual, and where Dell were once the leaders at desktops Citrix has taken over in a more modern space.

Graham_Devon

wymondham wrote: »

I hope it improves their service. I had a call on a server a while ago which went ok, but I then had 8, yes 8 phone calls from Dell asking me how their service had been. I started saying good but by the last one I was making things up!!

LOL, I get e-mails AND phone calls!

But to be fair, HP do the same thing!

Graham_Devon

Joeskeppi wrote: »

Dell seem to be losing out to Citrix lately. Large companies don't want a physical PC on every desk anymore, everything is going virtual, and where Dell were once the leaders at desktops Citrix has taken over in a more modern space.

Not in the public sector, and Dell is massive in the public sector.

However, having heard how much they pay for the Optiplex range per machine, I'm surprised Dell make any profit at all, especially considering the 3 year attachment they have to that machine.

CLAPTON

Joeskeppi wrote: »

Dell seem to be losing out to Citrix lately. Large companies don't want a physical PC on every desk anymore, everything is going virtual, and where Dell were once the leaders at desktops Citrix has taken over in a more modern space.

I thought citrix was a bit of software that requires a PC to run on?

Graham_Devon

CLAPTON wrote: »

I thought citrix was a bit of software that requires a PC to run on?

Just clients. Doesn't have to be a PC.

Though it does need server architecture, which is one area Dell plan to beef up on.

As do all those ipads and tablets. They all connect to servers. Apple don't do servers.... Infact, Apple don't do muych in the business world bar graphic and video stuff. It's mostly consumer end. Dell may be able to tap into the server end, especially in the corporate world as it's got a good footing anyway.

Generali

This is just like any other acquisition except it's the founder rather than another company looking to acquire.

The LBO is just a term for the structure of the purchase: Mr Dell will borrow money against the shares that he is buying in order to acquire them. This might smack of some crazy financial engineering except it's exactly how most people buy their home, by borrowing against the asset they wish to buy.

CLAPTON

Graham_Devon wrote: »

Just clients. Doesn't have to be a PC.

Though it does need server architecture, which is one area Dell plan to beef up on.

As do all those ipads and tablets. They all connect to servers. Apple don't do servers.... Infact, Apple don't do muych in the business world bar graphic and video stuff. It's mostly consumer end. Dell may be able to tap into the server end, especially in the corporate world as it's got a good footing anyway.

I haven't seen citrix running on anything other than a PC and connecting to central servers.

Basically a way for businesses to provide central storage, email and applications in a uniform and controlled way to their staff.

But there is no logical reason why it can't run on tablets and phones and non PC clients.

And clearly the market for PCs, especially for home use, is declining and being replaced by all those other devices.