by John Filippis, Strategic Engagement Manager, Quorum
After a few years of being a hardware company that wanted to be a services company, Michael Dell has decided to pull the handbrake, do a 180 degree pirouette and now wants to be a hardware company again. It seems that after dabbling in the services game for a while, Michael Dell has decided that its a good time to now jump off the bandwagon.
Dell Services a business division of Dell that was initially acquired through the purchase of Perot Systems, has been offloaded to NTT for the handy sum of $3.05 billion USD. This move by Michael Dell is centred primarily on providing a signal to the markets for his intent to reduce Dell’s debt after picking up EMC recently for $67 billion USD.
Although Dell services is only a small piece of that debt it will likely be the start of things to come, as Michael Dell stated recently that he intends to effectively “de-lever” the company.
As a Dell veteran of 4.5 years (Dell Services to be exact) I can attest to Dell’s constant state of flux in its acquisition and relinquishment of companies and products. During my period there, Dell had acquired over 26 organisations within a 2 year period, many of these organisations became somewhat “loose pieces” within the Dell empire. Dell Services was one of the larger pieces and as it could be easily ring fenced as its own entity, its time has now come for it to be set loose again. If I were a betting man, I would peg the next target to be Dell Software, or what was formerly known as Quest Software which was purchased for $2.4 billion USD in 2012.
Watch this space, as I believe it wont be long before more pieces of the current Dell empire get set loose as Michael Dell pushes the button of “de-leverage”.