In debt. There businesses will continue to fail.
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In my rearview mirror
Going private again. The experiment will sputter and cough and not work out as planned, largely because the people in charge of things not working out in the past, are still in place and don't understand how – or want to – adapt. The Powers will pull back to rethink, go private to get out of the public eye, and again try to reinvent the company on their own terms.
@3ezm+182vSDaO seriously, that was the least researched, worst opinion on this site, Give yourself a slap. Nearly everything there was just plain wrong.
Dell is tiny in consumer goods and never wants or plans to be big in that area.
Dell is a huge large existing player in enterprise accounts
They arent selling VMware,
you literally just made that up.
I find it difficult to understand how people can blame Dell management, there are very few left. EMC management rule the roost.
In 5 years I see a much smaller Dell selling Laptops and Mice having screwed up the storage arm completely. It will not be long before the new version of PowerMax will be released and, yes, it will be based on a PC full of hard drives like he is doing with every bit of IP he bought.
I am constantly getting pushback from colleagues every day because they are overloaded with work and simply cannot do more. Once this happens quality slips, dis-satisfaction sets in, customers go elsewhere.
The questions might rather be "How long before Dell goes private again?"
Another strong earnings report that won’t trickle down to the employees
2025 is not that far away, but I see Dell doing well in the consumer goods electronic market across the globe but loosing ground in the enterprise space. They purchased EMC for a pretty penny, $67 Billion, and with the amount of money they are dishing out at the top (Eg, Billy Scannell) and the dysfunctional changes those same clowns are making to the previously profitable EMC business units, they will never recoupe that investment. Dell doesn’t understand Enterprise business, or what the current mistakes in service and product quality is costing them. They can no longer be that agile and flexible partner that used to do “Whatever it took” to take care of the customer. Now it’s all about process, cost save, and following orders. This is why Dell could never succeed in the Enterprise market and why he had to go purchase a company that was doing well in that space to begin with.
Dell will eventually fail completely in the Enterprise space, to the point they won’t even want his laptops because of the association with poor quality and service. The day when he has to sell VMW will be the start of his downward spiral to be the lonely consumer king again. That is where he belongs honestly.
Dell stock nearing recent highs.
Where is the 401k match? Where are promotions?
I've been with Dell for several years now. I've seen them go through many, many changes. The GTM change that happened in 2H this year was, however, the worse thing I've ever experienced in my career. It is now obvious that L-EMC management was given the reins to carve up the accounts however they seemed fit. Well, in true L-EMC fashion (sorry, any L-EMC folks reading this), they F'd it up, badly. Customers who had been with account teams for several years were p-ss-d. Granted, customers don't like change, unless it means paying less. However it is clear that L-EMC management kept all their choice high-spend storage accounts and kicked everything ele over to the commercial segment. So, accounts with very little legacy Dell whitespace went to commercial and now, most of the accounts in the enterprise segment are huge EMC storage spend and all non-server and networking buyers. In the end, folks that had built nice recurring buyer accounts, were given what would be considered acquisition accounts, forcing them to sell at a loss just to get a foot in the door.
I understand change. Maybe things will get better, but my gut tells me that IT is going to the cloud faster than Dell or the industry ever expected thanks to Covid 19. The real winners now are AWS, Google, and Microsoft.
K–l the king. Love live the king.
@2jcl+182vSDaO who cares VMwares better days are behind them.
Guys. Hate to break it to you but Dell isnt selling VMware, they made that very clear. Dell will change the structure and ownership but will retain a majority and by doing this will retire a buttload of the aquisition debt. Anyone who is saying otherwise is wishful thinking.
"We're not selling VMware, we're not looking for a buyer," Michael Dell said. "We filed a form that says we are exploring taking the shares that Dell Technologies owns, and distributing them directly to our shareholders. Our shareholders would then own those shares"
And those shareholders are . . Dell and the other major investors that make up the majority. it's financial gymnastics but the outcome is the same. Release of money to pay down debt. It's a brilliant move.
ISG will be ok as they’ve cut product line down drastically which is good move to eliminate duplication products. Large enterprises will never go fully into cloud that’s a pipe dream and neither wii Govs for security reasons alone. However VMware if they sell it will k–l any large growth prospects for its future. Sure it’ll pay off it’s debt but look what’s left just hardware company.......yawn
I believe Dell is struggling to get the ISG business back into shape. Right now storage systems are gradually going into the cloud to save real estate cost of maintaining them. Dell still needs to pay off its huge debt and it would probably take a long time. I foresee that more layoffs will occur if they don't make up their revenue and strong growth compared to last year. From what I see the company is a sinking ship. There are competitors out there that are doing much better and Dell needs to catch-up. On the flip side, the CSG business has been doing better since more people are working from home and school will benefit from using Dell products to administer homeschooling.
The only thing keeping the lights on at Dell is VMware. VMware is the only good thing that came out of the EMC acquisition. They almost gave away that dog of a company RSA. The L-EMC people have one of the worst reputations in the IT world. When they spin off VMware which they are planning to do in 2021 - run for the hills and don't look back. Because of their huge debt load from the EMC purchase - their options are limited and the clock is ticking.
In 5 years they will still be wandering aimlessly trying to hang on and hug the HW tree. Like IBM, who still can't figure out what to do. They will definitely be smaller, layoffs will be more frequent because with less an less revenue they have no choice but to reduce expenses. People are very expensive but easy to cut. Large companies can't change fast enough which is why they are already behind. Large companies are a good place to ride it out and not work too hard. If you want to be on the cutting edge the smaller more focused companies are a better place to be. So the 5-year outlook is bleak, maybe in 10 years things will look better. The only way to accelerate change at Dell, there needs to be a change in leadership e.g. look what Satya Nadella did for Microsoft.
@joh+182vSDaO wont turn around back to where it was, the market has moved and all large ISG sites have gone Cloud, Partner Cloud or HCI . . HPC is gone, Servers have commoditised
True answer, I see them in 5 years time still being the essential infrastructure and compute lead in the corporate world, but with many changes between now and then.
ISG/Storage will finally consolidate post corona as they stop the cost wasting and time wasting of having this argument. They will double down on aquisitions of software vendors in critical infrastructure in an AAS economy and will get the AAS delivery right end to end with partners, partner clouds and customer hybrid environments. It just works for mainstream IT well.
One thing that has always been a certainty is that the board and leader pivot "like it is his own money" . . because it is . . Unlike HP or others, they wont necessarily wait to play out dead hands too long or to miss a window. Though it may seem the case sometimes. You only have to look at Autonomy at HP and the countless other money wasting aquisitions. Dell has at the very least, aquired then if it didnt work, moved it.
And Im writing this as a detractor. Im not a fan at the moment and dislike some of the things that are going on, but fair is fair, this will eventually clear and that's where they will be in 5 years.
Who is our president in 5 years? that is a different story.
Nowhere great if they can’t turn ISG around and grow the buyer base.
It’ll just be plodding along.