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Dell: No Plans to Go Private, Explores Selective Acquisitions

Michael Dell’s new book is Play Nice But Win: A CEO’s Journey From Founder to Leader
Michael Dell's new book is Play Nice But Win: A CEO's Journey From Founder to Leader

Dell Technologies has no plans to go private, and will instead remain a publicly held company that makes selected acquisitions, pays down debt and introduces a stock dividend in the next fiscal year.

Those anecdotes surfaced during a Michael Dell interview with Bloomberg Radio. During the conversation, Dell's founder and CEO described how the company will continue to focus on:

  • Cloud infrastructure;
  • all things related to end-user computing;
  • software defined data centers;
  • multi-cloud;
  • security;
  • edge computing; and
  • 5G opportunities.

The interview also explored Michael Dell's new book -- Play Nice But Win -- which documents his personal and professional journey, and also touches on the company's various stages in private and public markets.

Dell Explores Tuck-In Acquisitions

Looking ahead, Dell Technologies will address growth opportunities organically, through partnerships and with selected acquisitions, Michael Dell predicted.

Will Dell Technologies make another large acquisition -- something that rivals the $60 billion buyout of EMC Technologies in 2016? "Don't hold your breadth," said Dell while downplaying the possibility of a massive near-term M&A deal.

Instead, Dell Technologies will pay down debt. Moreover, the company plans to introduce a stock dividend in its next fiscal year, the executive predicted. The company's current fiscal year will end in January 2022.

The journey towards a $DELL stock dividend includes plans to spin off VMware in Q4 of the current fiscal year.

Dell Business and Channel Partner Momentum

Cheryl Cook, Dell Technologies

Meanwhile, Dell delivered record Q2 revenue results in August 2021. For the quarter, revenue was $26.1 billion, up 15 percent compared to Q2 the previous year. Net income was $880 million, down from $1.1 billion in Q2 the previous year.

In an interview with ChannelE2E, Cheryl Cook, senior VP of global partner marketing, described major across-the-board partner momentum for Dell's various product lines. Looking ahead, Dell in October 2021 will expand its Apex as-a-service initiatives with partners, while also doubling down on storage opportunities for partners, Cook added.

Early Apex testers included enterprise, mid-market and small business partners. The approach helped to ensure that Apex as-a-service options are well-designed for partners and end-customers of all sizes, Cook added.

Apex competes against such rival options as HPE GreenLake and Cisco Plus. The various hardware-as-a-service (HaaS) options counter public cloud subscription services. Partners and customers, in turn, gain subscription-oriented infrastructure that runs on premises or off premises.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.