Dell Technologies Inc. is an American
multinational technology company
A technology company (or tech company) is an electronics-based technological company, including, for example, business relating to digital electronics, software, and internet-related services, such as e-commerce services.
Details
According to '' ...
headquartered in
Round Rock, Texas
Round Rock is a city in the U.S. state of Texas, in Williamson County (with a small part in Travis County), which is a part of the Greater Austin metropolitan area. Its population is 119,468 as of the 2020 census.
The city straddles the Ba ...
. It was formed as a result of the September 2016 merger of
Dell and EMC Corporation (which later became
Dell EMC
Dell EMC (EMC Corporation until 2016) is an American multinational corporation headquartered in Hopkinton, Massachusetts and Round Rock, Texas, United States. Dell EMC sells data storage, information security, virtualization, analytics, cloud c ...
).
Dell's products include personal computers,
servers,
smartphones, televisions, computer software,
computer security
Computer security, cybersecurity (cyber security), or information technology security (IT security) is the protection of computer systems and networks from attack by malicious actors that may result in unauthorized information disclosure, t ...
and
network security
Network security consists of the policies, processes and practices adopted to prevent, detect and monitor unauthorized access, misuse, modification, or denial of a computer network and network-accessible resources. Network security involves th ...
, as well as
information security
Information security, sometimes shortened to InfoSec, is the practice of protecting information by mitigating information risks. It is part of information risk management. It typically involves preventing or reducing the probability of unauthorize ...
services.
[ Dell ranked 35th on the 2018 Fortune 500 rankings of the largest United States corporations by total revenue.
]
Current operations
Approximately 50% of the company's revenue is derived in the United States.[
Dell operates under two divisions:][
* Dell Client Solutions Group (48% of fiscal 2019 revenues) – produces desktop PCs, notebooks, tablets, and peripherals, such as monitors, printers, and projectors under the Dell brand name
* ]Dell EMC
Dell EMC (EMC Corporation until 2016) is an American multinational corporation headquartered in Hopkinton, Massachusetts and Round Rock, Texas, United States. Dell EMC sells data storage, information security, virtualization, analytics, cloud c ...
Infrastructure Solutions Group (41% of fiscal 2019 revenues) – servers, storage, and networking
Dell divested its ownership in Boomi, VMware
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
(80%) and Pivotal Software
Pivotal Software, Inc. was an American multinational software and services company based in San Francisco that provided cloud platform hosting and consulting services. Since December 2019, Pivotal has been part of VMware.
History
Pivotal S ...
, but owns other businesses such as Secureworks, Virtustream
Virtustream was a provider of cloud computing management software, infrastructure as a service ("IaaS") and managed services to enterprises, governments and service providers. It was a subsidiary of Dell Technologies.
Virtustream was headquart ...
.[
]
History
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
Michael Saul Dell (born February 23, 1965) is an American billionaire businessman and philanthropist. He is the founder, chairman, and CEO of Dell Technologies, one of the world's largest technology infrastructure companies. He is ranked the 2 ...
, Singapore's Temasek Holdings
Temasek Holdings (Private) Limited, or simply Temasek, is a Singaporean state holding company owned by the Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in assets u ...
and Silver Lake Partners
Silver Lake is an American global private equity firm focused on investments in technology, technology-enabled and related industries. Founded in 1999, the firm is one of the largest technology investors in the world. Its investment holdings have ...
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
Dell Software was a division of Dell with headquarters in Round Rock, Texas, United States. Dell Software was created merging various acquisitions (mainly Quest Software and Sonicwall) by Dell Inc., the third-largest maker of PCs and now a pri ...
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
Elliott Investment Management is an American investment management firm. It is also one of the largest activist funds in the world.
It is the management affiliate of American hedge funds Elliott Associates L.P. and Elliott International Limit ...
, a hedge fund
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...
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
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
products was confusing the market and hindering both companies.
''The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' 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
RSA Security LLC, formerly RSA Security, Inc. and doing business as RSA, is an American computer and network security company with a focus on encryption and encryption standards. RSA was named after the initials of its co-founders, Ron Rive ...
, $6bn from VMware
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
, and $230 million from Pivotal Software
Pivotal Software, Inc. was an American multinational software and services company based in San Francisco that provided cloud platform hosting and consulting services. Since December 2019, Pivotal has been part of VMware.
History
Pivotal S ...
.
EMC owned around 80% of the stock of VMware
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
. The acquisition maintained VMware
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
as a separate company, held via a new tracking stock
Tracking stock, also known as letter stock and targeted stock, is a specialized equity offering issued by a company that is based on the operations of a defined business within the larger organization (such as, for instance, a wholly owned subsi ...
, while the rest of EMC were rolled into Dell.
The acquisition required Dell to publish quarterly financial results, having ceased these on going private in 2013.
Dell Technologies has products and services in the field of scale-out architecture, converged infrastructure and private cloud computing.
In February 2018, McLaren announced a multi-year partnership deal with Dell Technologies. The partnership deal was extended in October 2021.
On April 15, 2021, it was reported that Dell Technologies will spin out the remainder of its VMware shares to shareholders. The two companies will continue to operate without major changes for at least five years.
IPO
On January 29, 2018, it was reported that Dell Technologies was considering a reverse merger
A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public compa ...
with its VMware
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
subsidiary to take the company public.
On December 28, 2018, Dell Technologies became a public company, bypassing the traditional IPO
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
process by buying back shares that tracked the financial performance of VMware
VMware, Inc. is an American cloud computing and virtualization technology company with headquarters in Palo Alto, California. VMware was the first commercially successful company to virtualize the x86 architecture.
VMware's desktop software ru ...
.
Carbon footprint
Dell Technologies reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 406 Kt (-64 /-13.6% y-o-y).[Alt URL]
/ref> Reported emissions have been declining steadily since 2016.
References
External links
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2016 establishments in Texas
American companies established in 2016
2018 initial public offerings
Cloud computing providers
Companies based in Round Rock, Texas
Computer companies established in 2016
Computer companies of the United States
Computer storage companies
Consumer electronics brands
Display technology companies
Electronics companies established in 2016
Home computer hardware companies
Manufacturing companies based in Texas
Manufacturing companies established in 2016
Mobile phone manufacturers
Multinational companies headquartered in the United States
Netbook manufacturers
Networking hardware companies
Private equity portfolio companies
Silver Lake (investment firm) companies
Companies listed on the New York Stock Exchange