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Dell is an American based technology company. It develops, sells, repairs, and supports computers and related products and services. Dell is owned by its parent company, Dell Technologies. Dell sells personal computers (PCs), servers,
data storage device Data storage is the recording (storing) of information (data) in a storage medium. Handwriting, phonographic recording, magnetic tape, and optical discs are all examples of storage media. Biological molecules such as RNA and DNA are conside ...
s, network switches, software, computer
peripheral A peripheral or peripheral device is an auxiliary device used to put information into and get information out of a computer. The term ''peripheral device'' refers to all hardware components that are attached to a computer and are controlled by the ...
s, HDTVs, cameras, printers, and electronics built by other manufacturers. The company is known for how it manages its
supply chain In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, acti ...
and
electronic commerce E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
. This includes Dell selling directly to customers and delivering PCs that the customer wants. Dell was a pure hardware vendor until 2009 when it acquired Perot Systems. Dell then entered the market for IT services. The company has expanded storage and networking systems. It is now expanding from offering computers only to delivering a range of technology for enterprise customers. Dell is a publicly-traded company (), as well as a component of the NASDAQ-100 and S&P 500. It is the 3rd largest personal computer vendor as of January 2021 . Dell is ranked 31st on the Fortune 500 list in 2022, up from 76th in 2021. It is also the sixth-largest company in Texas by total revenue, according to ''Fortune'' magazine. It is the second-largest non-oil company in Texas. In 2015, Dell acquired the enterprise technology firm EMC Corporation. Dell and EMC became divisions of Dell Technologies. Dell EMC sells data storage, information security, virtualization, analytics, and cloud computing.


History


Founding and start-up

Michael Dell founded Dell Computer Corporation, doing business as ''PC's Limited,'' in 1984 while a student at the University of Texas at Austin. Operating from Michael Dell's off-campus dormitory room at Dobie Center, the
start-up A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...
aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of college upon completion of his freshman year at the University of Texas at Austin in order to focus full-time on his fledgling business, after getting about $1,000 in expansion-capital from his family. As of April 2021, Michael Dell's net worth was estimated to be over $50 billion. In 1985, the company produced the first computer of its own design — the "Turbo PC", sold for US$795 — containing an Intel 8088-compatible processor capable of running at a maximum speed of 6.66 MHz. PC's Limited advertised the systems in national computer magazines for sale directly to consumers, and custom assembled each ordered unit according to a selection of options. This offered buyers prices lower than those of retail brands, but with greater convenience than assembling the components themselves. Although not the first company to use this business model, PC's Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year of trading. The company dropped the ''PC's Limited'' name in 1987 to become Dell Computer Corporation and began expanding globally. At the time, the reasoning was this new company name better reflected its presence in the business market, as well as resolved issues with the use of "
Limited Limited may refer to: Arts and media *''Limited Inc'', a 1988 book by Jacques Derrida *Limited series (comics), a comic book series with predetermined length Businesses *Limited Brands, an American company - owners of Victoria's Secret, Bath & Bo ...
" in a company name in certain countries. The company set up its first international operations in Britain; eleven more followed within the next four years. In June 1988, Dell Computer's market capitalization grew by $30 million to $80 million from its June 22 initial public offering of 3.5 million shares at $8.50 a share. In 1989, Dell Computer set up its first on-site service programs in order to compensate for the lack of local retailers prepared to act as service centers.


Growth in the 1990s and early 2000s

In 1990, Dell Computer tried selling its products indirectly through warehouse clubs and computer superstores, but met with little success, and the company re-focused on its more successful direct-to-consumer sales model. In 1992, ''
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'' included Dell Computer Corporation in its list of the world's
500 500 may refer to: * 500 (number) * 500 BC * AD 500 Buildings and places * 500 Boylston Street of Boston * 500 Brickell in Miami * 500 Capitol Mall in Sacramento * 500 Fifth Avenue * 500 Renaissance Center, one of seven buildings in the GM Renai ...
largest companies, making Michael Dell the youngest CEO of a Fortune 500 company at that time. In 1993, to complement its own direct sales channel, Dell planned to sell PCs at big-box retail outlets such as Wal-Mart, which would have brought in an additional $125 million in annual revenue. Bain consultant
Kevin Rollins Kevin Barney Rollins (born November 15, 1952) is an American businessman and philanthropist. The former President and CEO of Dell Inc., in 2006 Rollins was named by London's ''CBR'' as the 9th Most Influential person in the Enterprise IT sector. ...
persuaded Michael Dell to pull out of these deals, believing they would be money losers in the long run. Margins at retail were thin at best and Dell left the reseller channel in 1994. Rollins would soon join Dell full-time and eventually become the company president and CEO. Originally, Dell did not emphasize the consumer market, due to the higher costs and low profit margins in selling to individuals and households; this changed when the company's Internet site took off in 1996 and 1997. While the industry's average selling price to individuals was going down, Dell's was going up, as second- and third-time computer buyers who wanted powerful computers with multiple features and did not need much technical support were choosing Dell. Dell found an opportunity among PC-savvy individuals who liked the convenience of buying direct, customizing their PC to their means, and having it delivered in days. In early 1997, Dell created an internal sales and marketing group dedicated to serving the home market and introduced a product line designed especially for individual users. From 1997 to 2004, Dell steadily grew and it gained market share from competitors even during industry slumps. During the same period, rival PC vendors such as Compaq, Gateway, IBM, Packard Bell, and AST Research struggled and eventually left the market or were bought out.ZDNET Asia
Michael Dell back as CEO
February 1, 2007. Visited: April 10, 2012
Dell surpassed Compaq to become the largest PC manufacturer in 1999. Operating costs made up only 10 percent of Dell's $35 billion in revenue in 2002, compared with 21 percent of revenue at Hewlett-Packard, 25 percent at Gateway, and 46 percent at Cisco. In 2002, when Compaq merged with Hewlett-Packard (the fourth-place PC maker), the newly combined Hewlett-Packard took the top spot for a time but struggled and Dell soon regained its lead. Dell grew the fastest in the early 2000s. In 2002, Dell expanded its product line to include televisions, handhelds, digital audio players, and printers. Chairman and CEO Michael Dell had repeatedly blocked President and COO
Kevin Rollins Kevin Barney Rollins (born November 15, 1952) is an American businessman and philanthropist. The former President and CEO of Dell Inc., in 2006 Rollins was named by London's ''CBR'' as the 9th Most Influential person in the Enterprise IT sector. ...
's attempt to lessen the company's heavy dependency on PCs, which Rollins wanted to fix by acquiring EMC Corporation; a move that would eventually occur over 12 years later. In 2003, at the annual company meeting, the stockholders approved changing the company name to "Dell Inc." to recognize the company's expansion beyond computers. In 2004, the company announced that it would build a new assembly-plant near Winston-Salem, North Carolina; the city and county provided Dell with $37.2 million in incentive packages; the state provided approximately $250 million in incentives and tax breaks. In July, Michael Dell stepped aside as chief executive officer while retaining his position as
chairman of the board The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the grou ...
.
Kevin Rollins Kevin Barney Rollins (born November 15, 1952) is an American businessman and philanthropist. The former President and CEO of Dell Inc., in 2006 Rollins was named by London's ''CBR'' as the 9th Most Influential person in the Enterprise IT sector. ...
, who had held a number of executive posts at Dell, became the new CEO. Despite no longer holding the CEO title, Dell essentially acted as a de facto co-CEO with Rollins. Under Rollins, Dell purchased the computer hardware manufacturer Alienware in 2006. Dell Inc.'s plan anticipated Alienware continuing to operate independently under its existing management. Alienware expected to benefit from Dell's efficient manufacturing system.


Key events

In 2005, while earnings and sales continued to rise, sales growth slowed considerably, and the company stock lost 25% of its value that year.Bloomberg-Businesswee
Its Dell vs the Dell way
February 2006. Visited: April 10, 2012
By June 2006, the stock traded around US$25 which was 40% down from July 2005—the high-water mark of the company in the post-dotcom era. The slowing sales growth has been attributed to the maturing PC market, which constituted 66% of Dell's sales, and analysts suggested that Dell needed to make inroads into non-PC business segments such as storage, services, and servers. Dell's price advantage was tied to its ultra-lean manufacturing for desktop PCs, but this became less important as savings became harder to find inside the company's supply chain, and as competitors such as Hewlett-Packard and Acer made their PC manufacturing operations more efficient to match Dell, weakening Dell's traditional price differentiation. Throughout the entire PC industry, declines in prices along with commensurate increases in performance meant that Dell had fewer opportunities to upsell to their customers (a lucrative strategy of encouraging buyers to upgrade the processor or memory). As a result, the company was selling a greater proportion of inexpensive PCs than before, which eroded profit margins. The laptop segment had become the fastest-growing of the PC market, but Dell produced low-cost notebooks in China like other PC manufacturers which eliminated Dell's manufacturing cost advantages, plus Dell's reliance on Internet sales meant that it missed out on growing notebook sales in big box store

ref name="nytimes2006"/> ''CNET'' has suggested that Dell was getting trapped in the increasing commoditization of high volume low margin computers, which prevented it from offering more exciting devices that consumers demanded. Despite plans of expanding into other global regions and product segments, Dell was heavily dependent on US corporate PC market, as desktop PCs sold to both commercial and corporate customers accounted for 32 percent of its revenue, 85 percent of its revenue comes from businesses, and sixty-four percent of its revenue comes from North and South America, according to its 2006 third-quarter results. US shipments of desktop PCs were shrinking, and the corporate PC market, which purchases PCs in upgrade cycles, had largely decided to take a break from buying new systems. The last cycle started around 2002, three or so years after companies started buying PCs ahead of the perceived Year 2000 problem, Y2K problems, and corporate clients were not expected to upgrade again until extensive testing of Microsoft's Windows Vista (expected in early 2007), putting the next upgrade cycle around 2008. Heavily dependent on PCs, Dell had to slash prices to boost sales volumes, while demanding deep cuts from suppliers. Dell had long stuck by its direct sales model. Consumers had become the main drivers of PC sales in recent years, yet there had a decline in consumers purchasing PCs through the Web or on the phone, as increasing numbers were visiting consumer electronics retail stores to try out the devices first. Dell's rivals in the PC industry, HP, Gateway and Acer, had a long retail presence and so were well poised to take advantage of the consumer shift. The lack of a retail presence stymied Dell's attempts to offer consumer electronics such as flat-panel TVs and MP3 players. Dell responded by experimenting with mall kiosks, plus quasi-retail stores in Texas and New York. Dell had a reputation as a company that relied upon supply chain efficiencies to sell established technologies at low prices, instead of being an innovator. By the mid-2000s many analysts were looking to innovating companies as the next source of growth in the technology sector. Dell's low spending on R&D relative to its revenue (compared to IBM,
Hewlett Packard The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company headquartered in Palo Alto, California. HP developed and provided a wide variety of hardware components ...
, and Apple Inc.)—which worked well in the commoditized PC market—prevented it from making inroads into more lucrative segments, such as MP3 players and later mobile devices. Increasing spending on R&D would have cut into the operating margins that the company emphasized. Dell had done well with a horizontal organization that focused on PCs when the computing industry moved to horizontal mix-and-match layers in the 1980s, but by the mid-2000 the industry shifted to vertically integrated stacks to deliver an end-to-end IT product, and Dell lagged far behind competitors like Hewlett Packard and Oracle. Dell's reputation for poor customer service, since 2002, which was exacerbated as it moved call centers offshore and as its growth outstripped its technical support infrastructure, came under increasing scrutiny on the Web. The original Dell model was known for high customer satisfaction when PCs sold for thousands but by the 2000s, the company could not justify that level of service when computers in the same line-up sold for hundreds. Rollins responded by shifting Dick Hunter from the head of manufacturing to head of customer service. Hunter, who noted that Dell's DNA of cost-cutting "got in the way," aimed to reduce call transfer times and have call center representatives resolve inquiries in one call. By 2006, Dell had spent $100 million in just a few months to improve on this and rolled out ''DellConnect'' to answer customer inquiries more quickly. In July 2006, the company started its Direct2Dell blog, and then in February 2007, Michael Dell launched IdeaStorm.com, asking customers for advice including selling Linux computers and reducing the promotional "bloatware" on PCs. These initiatives did manage to cut the negative blog posts from 49% to 22%, as well as reduce the "Dell Hell" prominent on Internet search engines. There was also criticism that Dell used faulty components for its PCs, particularly the 11.8 million OptiPlex desktop computers sold to businesses and governments from May 2003 to July 2005, that suffered from faulty capacitors. A battery recall in August 2006, as a result of a Dell laptop catching fire caused much negative attention for the company though later, Sony was found responsible for the manufacturing of the batteries, however spokesman for Sony Yoshikazu Ochiai said the problem concerned the combination of the battery with a charger, which is specific to Dell in this case. 2006 marked the first year that Dell's growth was slower than the PC industry as a whole. By the fourth quarter of 2006, Dell lost its title of the largest PC manufacturer to rival Hewlett Packard whose Personal Systems Group was invigorated thanks to a restructuring initiated by their CEO Mark Hurd.


SEC investigation

In August 2005, Dell became the subject of an informal investigation by the US SEC. In 2006, the company disclosed that the US Attorney for the Southern District of New York had subpoenaed documents related to the company's financial reporting dating back to 2002. The company delayed filing financial reports for the third and fourth fiscal quarter of 2006, and several class-action lawsuits were filed. Dell Inc's failure to file its quarterly earnings report could have subjected the company to de-listing from the
NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
, but the exchange granted Dell a waiver, allowing the stock to trade normally. In August 2007, the Company announced that it would restate its earnings for fiscal years 2003 through 2006 and the first quarter of 2007 after an internal audit found that certain employees had changed corporate account balances to meet quarterly financial targets. In July 2010, the SEC announced charges against several senior Dell executives, including Dell Chairman and CEO Michael Dell, former CEO Kevin Rollins, and former CFO James Schneider, "with failing to disclose material information to investors and using fraudulent accounting to make it falsely appear that the company was consistently meeting Wall Street earnings targets and reducing its operating expenses." Dell, inc. was fined $100 million, with Michael Dell personally fined $4 million.


Michael Dell resumes CEO role

After four out of five quarterly earnings reports were below expectations, Rollins resigned as president and CEO on January 31, 2007, and founder Michael Dell assumed the role of CEO again. On March 1, 2007, the company issued a preliminary quarterly earnings report showing gross sales of $14.4 billion, down 5% year-over-year, and net income of $687 million (30 cents per share), down 33%. Net earnings would have declined even more if not for the effects of eliminated employee bonuses, which accounted for six cents per share. NASDAQ extended the company's deadline for filing financials to May 4.


Dell 2.0 and downsizing

Dell announced a change campaign called "Dell 2.0," reducing the number of employees and diversifying the company's products. While chairman of the board after relinquishing his CEO position, Michael Dell still had significant input in the company during Rollins' years as CEO. With the return of Michael Dell as CEO, the company saw changes in operations, the exodus of many senior vice-presidents and new personnel brought in from outside the company. Michael Dell announced a number of initiatives and plans (part of the "Dell 2.0" initiative) to improve the company's financial performance. These include elimination of 2006 bonuses for employees with some discretionary awards, reduction in the number of managers reporting directly to Michael Dell from 20 to 12, and reduction of "
bureaucracy The term bureaucracy () refers to a body of non-elected governing officials as well as to an administrative policy-making group. Historically, a bureaucracy was a government administration managed by departments staffed with non-elected offi ...
". Jim Schneider retired as CFO and was replaced by
Donald Carty Donald J. Carty, (born July 23, 1946) is a Canadian-American businessman who serves as chairman of Porter Airlines. Carty also serves as a director of VMWare, Hawaiian Airlines and Betterez. He was previously chairman and chief executive officer ...
, as the company came under an SEC probe for its accounting practices. On April 23, 2008, Dell announced the closure of one of its biggest Canadian call-centers in Kanata, Ontario, terminating approximately 1100 employees, with 500 of those redundancies effective on the spot, and with the official closure of the center scheduled for the summer. The call-center had opened in 2006 after the city of
Ottawa Ottawa (, ; Canadian French: ) is the capital city of Canada. It is located at the confluence of the Ottawa River and the Rideau River in the southern portion of the province of Ontario. Ottawa borders Gatineau, Quebec, and forms the core ...
won a bid to host it. Less than a year later, Dell planned to double its workforce to nearly 3,000 workers add a new building. These plans were reversed, due to a high
Canadian dollar The Canadian dollar ( symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style ...
that made the Ottawa staff relatively expensive, and also as part of Dell's turnaround, which involved moving these call-center jobs offshore to cut costs. The company had also announced the shutdown of its Edmonton, Alberta, office, losing 900 jobs. In total, Dell announced the ending of about 8,800 jobs in 2007–2008 — 10% of its workforce. By the late 2000s, Dell's "configure to order" approach of manufacturing—delivering individual PCs configured to customer specifications from its US facilities was no longer as efficient or competitive with high-volume Asian contract manufacturers as PCs became powerful low-cost commodities. Dell closed plants that produced desktop computers for the North American market, including the Mort Topfer Manufacturing Center in Austin, Texas (original location) and
Lebanon, Tennessee Lebanon is the county seat of Wilson County, Tennessee, United States. The population was 38,431 at the 2020 census. Lebanon is located in Middle Tennessee, approximately east of downtown Nashville. Lebanon is part of the Nashville Metropolit ...
(opened in 1999) in 2008 and early 2009, respectively. The desktop production plant in Winston-Salem, North Carolina, received US$280 million in incentives from the state and opened in 2005, but ceased operations in November 2010. Dell's contract with the state required them to repay the incentives for failing to meet the conditions, and they sold the North Carolina plant to Herbalife.The Register
Dell cuts North-Carolina plant despite $280m sweetener
October 8, 2009. Visited: April 10, 2012
Much work was transferred to manufacturers in Asia and Mexico, or some of Dell's own factories overseas. On January 8, 2009, Dell announced the closure of its manufacturing plant in Limerick, Ireland, with the loss of 1,900 jobs and the transfer of production to its plant in Łodź in Poland.


Attempts at diversification

The release of Apple's iPad tablet computer had a negative impact on Dell and other major PC vendors, as consumers switched away from desktop and laptop PCs. Dell's own mobility division has not managed success with developing smartphones or tablets, whether running Windows or Google Android. The
Dell Streak Dell Streak 5 (previously known as the Dell Mini 5) is a smartphone/ tablet hybrid ("phablet") from Dell that uses the Android operating system. It comes with a capacitive touchscreen and two cameras, a 5 MP one with dual- LED flash on the ba ...
was a failure commercially and critically due to its outdated OS, numerous bugs, and low resolution screen. ''InfoWorld'' suggested that Dell and other OEMs saw tablets as a short-term, low-investment opportunity running Google Android, an approach that neglected user interface and failed to gain long term market traction with consumers. Dell has responded by pushing higher-end PCs, such as the XPS line of notebooks, which do not compete with the Apple iPad and Kindle Fire tablets. The growing popularity of smartphones and tablet computers instead of PCs drove Dell's consumer segment to an operating loss in Q3 2012. In December 2012, Dell suffered its first decline in holiday sales in five years, despite the introduction of Windows 8. In the shrinking PC industry, Dell continued to lose market share, as it dropped below
Lenovo Lenovo Group Limited, often shortened to Lenovo ( , ), is a Chinese Multinational corporation, multinational technology company specializing in designing, manufacturing, and marketing consumer electronics, Personal computer, personal computers, ...
in 2011 to fall to number three in the world. Dell and fellow American contemporary Hewlett Packard came under pressure from Asian PC manufacturers Lenovo, Asus, and Acer, all of which had lower production costs and were willing to accept lower profit margins. In addition, while the Asian PC vendors had been improving their quality and design—for instance, Lenovo's ThinkPad series was winning corporate customers away from Dell's laptops—Dell's customer service and reputation had been slipping. Dell remained the second-most profitable PC vendor, as it took 13 percent of operating profits in the PC industry during Q4 2012, behind Apple's Mac that took 45 percent, seven percent at Hewlett Packard, six percent at Lenovo and Asus, and one percent for Acer. Dell attempted to offset its declining PC business, which still accounted for half of its revenue and generates steady cash flow, by expanding into the enterprise market with servers, networking, software, and services. It avoided many of the acquisition write-downs and management turnover that plagued its chief rival Hewlett Packard. Despite spending $13 billion on acquisitions to diversify its portfolio beyond hardware, the company was unable to convince the market that it could thrive or made the transformation in the post-PC world, as it suffered continued declines in revenue and share price. Dell's market share in the corporate segment was previously a "moat" against rivals but this has no longer been the case as sales and profits have fallen precipitously.


2013 buyout

After several weeks of rumors, which started around January 11, 2013, Dell announced on February 5, 2013, that it had struck a $24.4 billion leveraged buyout deal, that would have delisted its shares from the NASDAQ and Hong Kong Stock Exchange and taken it private. Reuters reported that Michael Dell 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 ...
, aided by a $2 billion loan from Microsoft, would acquire the public shares at $13.65 apiece. The $24.4 billion buyout was projected to be the largest leveraged buyout backed by private equity since the
2007 financial crisis 7 (seven) is the natural number following 6 and preceding 8. It is the only prime number preceding a cube. As an early prime number in the series of positive integers, the number seven has greatly symbolic associations in religion, mythology, s ...
. It is also the largest technology buyout ever, surpassing the 2006 buyout of Freescale Semiconductor for $17.5 billion. The founder of Dell, Michael Dell, said of the February offer "I believe this transaction will open an exciting new chapter for Dell, our customers and team members". Dell rival Lenovo responded to the buyout, saying, "the financial actions of some of our traditional competitors will not substantially change our outlook." In March 2013, the Blackstone Group and Carl Icahn expressed interest in purchasing Dell. In April 2013, Blackstone withdrew their offer, citing deteriorating business. Other private equity firms such as KKR & Co. and TPG Capital declined to submit alternative bids for Dell, citing the uncertain market for personal computers and competitive pressures, so the "wide-open bidding war" never materialized. Analysts said that the biggest challenge facing Silver Lake would be to find an "exit strategy" to profit from its investment, which would be when the company would hold an IPO to go public again, and one warned "But even if you can get a $25bn enterprise value for Dell, it will take years to get out." In May 2013, Dell joined his board in voting for his offer. The following August he reached a deal with the special committee on the board for $13.88 (a raised price of $13.75 plus a special dividend of 13 cents per share), as well as a change to the voting rules. The $13.88 cash offer (plus a $.08 per share dividend for the third fiscal quarter) was accepted on September 12 and closed on October 30, 2013, ending Dell's 25-year run as a publicly-traded company. After the buyout, the newly private Dell offered a Voluntary Separation Program that they expected to reduce their workforce by up to seven percent. The reception to the program so exceeded the expectations that Dell may be forced to hire new staff to make up for the losses.


Recent history

On November 19, 2015, Dell, alongside
ARM Holdings Arm is a British semiconductor and software design company based in Cambridge, England. Its primary business is in the design of ARM processors (CPUs). It also designs other chips, provides software development tools under the DS-5, RealView an ...
, Cisco Systems, Intel, Microsoft, and Princeton University, founded the OpenFog Consortium, to promote interests and development in fog computing.


Acquisition of EMC

On October 12, 2015, Dell Inc. announced its intent to acquire EMC Corporation in a cash-and-stock deal valued at $67 billion, which has been considered the largest-ever acquisition in the technology sector. As part of the acquisition, Dell would take over EMC's 81% stake in the cloud-computing and virtualization company VMWare. This would combine Dell's enterprise server, personal computer, and mobile businesses with EMC's enterprise storage business in a significant Vertical merger of IT giants. Dell would pay $24.05 per share of EMC, and $9.05 per share of tracking stock in VMware. The announcement came two years after Dell Inc. returned to private ownership, claiming that it faced bleak prospects and would need several years out of the public eye to rebuild its business. It's thought that the company's value has roughly doubled since then. EMC was being pressured by
Elliott Management 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 holding 2.2% of EMC's stock, to reorganize their 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 products was confusing the market and hindering both companies. '' The Wall Street Journal'' estimated that in 2014 Dell had revenue of $27.3billion from personal computers and $8.9bn from servers, while EMC had $16.5bn from EMC II, $1bn from RSA Security, $6bn from VMware, and $230million from Pivotal Software. EMC owns around 80 percent of the stock of VMware. The proposed acquisition will maintain VMware as a separate company, held via a new tracking stock, while the other parts of EMC will be rolled into Dell. Once the acquisition closes Dell will again publish quarterly financial results, having ceased these on going private in 2013. The combined business was expected to address the markets for scale-out architecture, converged infrastructure and private cloud computing, playing to the strengths of both EMC and Dell. Commentators have questioned the deal, with
FBR Capital Markets FBR & Co. (Nasdaq:FBRC, formerly known as ''Friedman, Billings, Ramsey Group'') was a capital markets firm headquartered in Arlington, Virginia. Founded in 1989 by Emanuel J. Friedman, Eric F. Billings, and W. Russell Ramsey, the company provide ...
saying that though it makes a "ton of sense" for Dell, it's a "nightmare scenario that would lack strategic synergies" for EMC. ''Fortune'' said there was a lot for Dell to like in EMC's portfolio, but "does it all add up enough to justify tens of billions of dollars for the entire package? Probably not." '' The Register'' reported the view of William Blair & Company that the merger would "blow up the current IT chess board", forcing other IT infrastructure vendors to restructure to achieve scale and vertical integration. The value of VMware stock fell 10% after the announcement, valuing the deal at around $63–64bn rather than the $67bn originally reported. Key investors backing the deal besides Dell were Singapore's Temasek Holdings 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 ...
. 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. At the time, some analysts claimed that Dell's acquisition of the former Iomega could harm the
LenovoEMC Iomega (later LenovoEMC) produced external, portable, and networked data storage products. Established in the 1980s in Roy, Utah, United States, Iomega sold more than 410 million digital storage drives and disks, including the Zip drive floppy d ...
partnership. In July 2018, Dell announced intentions to become a publicly traded company again by paying $21.7 billion in both cash and stock to buy back shares from its stake in VMware, offering shareholders roughly 60 cents on the dollar as part of the deal. In November, Carl Icahn (9.3% owner of Dell) sued the company over plans to go public. As a result of pressure from Icahn and other activist investors, Dell renegotiated the deal, ultimately offering shareholders about 80% of market value. As part of this deal, Dell once again became a public company, with the original Dell computer business and Dell EMC operating under the newly created parent, Dell Technologies. Post-acquisition, Dell was re-organized with a new parent company, Dell Technologies; Dell's consumer and workstation businesses are internally referred to as the Dell Client Solutions Group, and is one of the company's three main business divisions alongside Dell EMC and VMware. In January 2021, Dell reported $94 billion in sales and $13 billion operating cash flow during 2020.


Dell and AMD

When Dell acquired Alienware early in 2006, some Alienware systems had AMD chips. On August 17, 2006, a Dell press release stated that starting in September, Dell Dimension desktop computers would have AMD processors and that later in the year Dell would release a two-socket, quad-processor server using AMD Opteron chips, moving away from Dell's tradition of only offering Intel processors in Dell PCs.
CNet ''CNET'' (short for "Computer Network") is an American media website that publishes reviews, news, articles, blogs, podcasts, and videos on technology and consumer electronics globally. ''CNET'' originally produced content for radio and televi ...
's News.com on August 17, 2006, cited Dell's CEO Kevin Rollins as attributing the move to AMD processors to lower costs and to AMD technology. AMD's senior VP in commercial business, Marty Seyer, stated: "Dell's wider embrace of AMD processor-based offerings is a win for Dell, for the industry and most importantly for Dell customers." On October 23, 2006, Dell announced new AMD-based servers — the PowerEdge 6950 and the PowerEdge SC1435. On November 1, 2006, Dell's website began offering notebooks based on AMD processors (the Inspiron 1501 with a display) with the choice of a single-core MK-36 processor, dual-core Turion X2 chips or Mobile Sempron. In 2017, Dell released the AlienWare 17. The model was primarily based on NVIDIA GeForce GTX 1080 systems.


Dell and desktop Linux

In 1998, Ralph Nader asked Dell (and five other major OEMs) to offer alternate operating systems to
Microsoft Windows Windows is a group of several proprietary graphical operating system families developed and marketed by Microsoft. Each family caters to a certain sector of the computing industry. For example, Windows NT for consumers, Windows Server for serv ...
, specifically including Linux, for which "there is clearly a growing interest". Possibly coincidentally, Dell started offering Linux notebook systems that "cost no more than their Windows 98 counterparts" in 2000, and soon expanded, with Dell becoming "the first major manufacturer to offer Linux across its full product line". However, by early 2001 Dell had "disbanded its Linux business unit." On February 26, 2007, Dell announced that it had commenced a program to sell and distribute a range of computers with pre-installed Linux distributions as an alternative to
Microsoft Windows Windows is a group of several proprietary graphical operating system families developed and marketed by Microsoft. Each family caters to a certain sector of the computing industry. For example, Windows NT for consumers, Windows Server for serv ...
. Dell indicated that
Novell Novell, Inc. was an American software and services company headquartered in Provo, Utah, that existed from 1980 until 2014. Its most significant product was the multi-platform network operating system known as Novell NetWare. Under the lead ...
's
SUSE SUSE ( , ) is a German-based multinational open-source software company that develops and sells Linux products to business customers. Founded in 1992, it was the first company to market Linux for enterprise. It is the developer of SUSE Linux Ent ...
Linux would appear first. However, the next day, Dell announced that its previous announcement related to certifying the hardware as ready to work with Novell SUSE Linux and that it (Dell) had no plans to sell systems pre-installed with Linux in the near future. On March 28, 2007, Dell announced that it would begin shipping some desktops and laptops with Linux pre-installed, although it did not specify which distribution of Linux or which hardware would lead. On April 18, a report appeared suggesting that Michael Dell used Ubuntu on one of his home systems. On May 1, 2007, Dell announced it would ship the Ubuntu Linux distribution. On May 24, 2007, Dell started selling models with Ubuntu Linux 7.04 pre-installed: a laptop, a budget computer, and a high-end PC. On June 27, 2007, Dell announced on its Direct2Dell blog that it planned to offer more pre-loaded systems (the new Dell Inspiron desktops and laptops). After the IdeaStorm site supported extending the bundles beyond the US market, Dell later announced more international marketing. On August 7, 2007, Dell officially announced that it would offer one notebook and one desktop in the UK, France and Germany with Ubuntu "pre-installed". At LinuxWorld 2007 Dell announced plans to provide
Novell Novell, Inc. was an American software and services company headquartered in Provo, Utah, that existed from 1980 until 2014. Its most significant product was the multi-platform network operating system known as Novell NetWare. Under the lead ...
's
SUSE Linux Enterprise Desktop SUSE Linux Enterprise (often abbreviated to SLE) is a Linux-based operating system developed by SUSE. It is available in two editions, suffixed with Server (SLES) for servers and mainframes, and Desktop (SLED) for workstations and desktop compu ...
on selected models in China, "factory-installed". On November 30, 2007, Dell reported shipping 40,000 Ubuntu PCs. On January 24, 2008, Dell in Germany, Spain, France, and the United Kingdom launched a second laptop, an XPS M1330 with Ubuntu 7.10, for 849 euro or GBP 599 upwards. On February 18, 2008, Dell announced that the Inspiron 1525 would have Ubuntu as an optional operating system. On February 22, 2008, Dell announced plans to sell Ubuntu in Canada and in Latin America From September 16, 2008, Dell has shipped both
Dell Ubuntu Netbook Remix Ubuntu Netbook Edition (UNE), known as Ubuntu Netbook Remix (UNR) prior to the release of Ubuntu 10.04, is a discontinued version of the Ubuntu operating system (OS) that had been optimized to enable it to work better on netbooks and other devic ...
and Windows XP Home versions of the Inspiron Mini 9 and the Inspiron Mini 12. Dell shipped the Inspiron Mini laptops with Ubuntu version 8.04. As of 2021, Dell continues to offer select laptops and workstations with Ubuntu Linux pre-installed, under the "Developer Edition" moniker.


List of Dell marketing slogans

* Be direct (1998-2001) * Easy as Dell (2001-2004) * Get more out of now (2004–2005) * It's a Dell (2005-2006) * Dell. Purely You (2006–2007) * Yours is Here (2007–2011) * The power to do more (2011–present)


Senior leadership


List of chairmen

# Michael Dell (1984– )


List of chief executives

# Michael Dell (1984–2004) #
Kevin Rollins Kevin Barney Rollins (born November 15, 1952) is an American businessman and philanthropist. The former President and CEO of Dell Inc., in 2006 Rollins was named by London's ''CBR'' as the 9th Most Influential person in the Enterprise IT sector. ...
(2004–2007) # Michael Dell (2007–present); second term


Acquisitions


Dell facilities

Dell's headquarters is located in Round Rock, Texas. the company employed about 14,000 people in central Texas and was the region's largest private employer,Austin American-Statesman
The Dell deal: what would be different if...
, January 19, 2013. Visited: January 23, 2013
which has of space.Staff.

" ''
New Mexico Business Weekly American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes The Business Journals, which contains local business news for 44 markets in the United States, Hemmings Motor New ...
''. Wednesday April 2, 2008. Retrieved May 4, 2010.
As of 1999 almost half of the general fund of the city of Round Rock originated from sales taxes generated from the Dell headquarters. Dell previously had its headquarters in the
Arboretum An arboretum (plural: arboreta) in a general sense is a botanical collection composed exclusively of trees of a variety of species. Originally mostly created as a section in a larger garden or park for specimens of mostly non-local species, man ...
complex in northern Austin, Texas.Pope, Kyle.
Dell chief disbands project
" ''
Austin American-Statesman The ''Austin American-Statesman'' is the major daily newspaper for Austin, the capital city of Texas. It is owned by Gannett. The paper prints Associated Press, ''New York Times'', ''The Washington Post'', and ''Los Angeles Times'' internation ...
''. February 25, 1990. A1. Retrieved May 4, 2010. "Dell is headquartered at the Arboretum complex in North Austin and employs about 1200 people."
In 1989 Dell occupied in the Arboretum complex. In 1990, Dell had 1,200 employees in its headquarters. In 1993, Dell submitted a document to Round Rock officials, titled "Dell Computer Corporate Headquarters, Round Rock, Texas, May 1993 Schematic Design." Despite the filing, during that year the company said that it was not going to move its headquarters. In 1994, Dell announced that it was moving most of its employees out of the Arboretum, but that it was going to continue to occupy the top floor of the Arboretum and that the company's official headquarters address would continue to be the Arboretum. The top floor continued to hold Dell's board room, demonstration center, and visitor meeting room. Less than one month prior to August 29, 1994, Dell moved 1,100 customer support and telephone sales employees to Round Rock. Dell's lease in the Arboretum had been scheduled to expire in 1994. By 1996, Dell was moving its headquarters to Round Rock.Ladendorf, Kirk.
Dell expanding in Central Texas
" ''
Austin American-Statesman The ''Austin American-Statesman'' is the major daily newspaper for Austin, the capital city of Texas. It is owned by Gannett. The paper prints Associated Press, ''New York Times'', ''The Washington Post'', and ''Los Angeles Times'' internation ...
''. October 1, 1996. A1. Retrieved May 4, 2010.
As of January 1996, 3,500 people still worked at the current Dell headquarters. One building of the Round Rock headquarters, Round Rock 3, had space for 6,400 employees and was scheduled to be completed in November 1996. In 1998 Dell announced that it was going to add two buildings to its Round Rock complex, adding of office space to the complex. In 2000, Dell announced that it would lease of space in the
Las Cimas Las Cimas (Spanish: "Summit" or "Top"Overview
." Last Cimas Phase IV. Retrieved on May 16, 2010.
) is an office complex ...
office complex in unincorporated Travis County, Texas, between Austin and
West Lake Hills West Lake Hills (locally referred to as "Westlake") is a city in Travis County, Texas, United States. The population was 3,444 at the 2020 census. The city developed rapidly in the 1970s and 1980s on the south side of the Colorado River. Accordin ...
, to house the company's executive offices and corporate headquarters. 100 senior executives were scheduled to work in the building by the end of 2000. In January 2001, the company leased the space in Las Cimas 2, located along
Loop 360 Loop 360 is a loop route in Austin in the U.S. state of Texas. Loop 360 is a scenic highway winding through the hills of West Austin. The road is described by the Texas Department of Transportation (TxDOT) as "a 4-lane depressed median arteri ...
. Las Cimas 2 housed Dell's executives, the investment operations, and some corporate functions. Dell also had an option for of space in Las Cimas 3.Dell seeks to sublease Las Cimas offices
" ''
Austin Business Journal American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes The Business Journals, which contains local business news for 44 markets in the United States, Hemmings Motor News ...
''. Friday March 8, 2002. Retrieved May 4, 2010.
After a slowdown in business required reducing employees and production capacity, Dell decided to sublease its offices in two buildings in the Las Cimas office complex. In 2002 Dell announced that it planned to sublease its space to another tenant; the company planned to move its headquarters back to Round Rock once a tenant was secured. By 2003, Dell moved its headquarters back to Round Rock. It leased all of Las Cimas I and II, with a total of , for about a seven-year period after 2003. By that year roughly of that space was absorbed by new subtenants. In 2008, Dell switched the power sources of the Round Rock headquarters to more environmentally friendly ones, with 60% of the total power coming from TXU Energy wind farms and 40% coming from the Austin Community Landfill gas-to-energy plant operated by
Waste Management, Inc. Waste Management, Inc., doing business as WM, is a waste management, comprehensive waste, and environmental services company operating in North America. Founded in 1968, the company is headquartered in the Bank of America Tower in Houston, Tex ...
Dell facilities in the United States are located in Austin, Texas;
Nashua, New Hampshire Nashua is a city in southern New Hampshire, United States. At the 2020 United States census, 2020 census, it had a population of 91,322, the second-largest in northern New England after nearby Manchester, New Hampshire, Manchester. Along with Manc ...
; Nashville, Tennessee; Oklahoma City, Oklahoma;
Peoria, Illinois Peoria ( ) is the county seat of Peoria County, Illinois, United States, and the largest city on the Illinois River. As of the United States Census, 2020, 2020 census, the city had a population of 113,150. It is the principal city of the Peoria ...
;
Hillsboro, Oregon Hillsboro ( ) is the fifth-largest city in the U.S. state of Oregon and is the county seat of Washington County. Situated in the Tualatin Valley on the west side of the Portland metropolitan area, the city hosts many high-technology companies, ...
(Portland area); Winston-Salem, North Carolina;
Eden Prairie, Minnesota Eden Prairie is a city southwest of downtown Minneapolis in Hennepin County and the 16th-largest city in the State of Minnesota, United States. As of the 2020 census, it has a population of 64,198. The city is adjacent to the north bank of th ...
(
Dell Compellent Dell Compellent, formerly Compellent Technologies, Inc., was an American manufacturer of enterprise computer data storage systems that provided block-level storage resources to small and medium sized IT infrastructures. The company was founded in ...
); Bowling Green, Kentucky; Lincoln, Nebraska; and Miami, Florida. Facilities located abroad include Penang, Malaysia; Xiamen, China;
Bracknell Bracknell () is a large town and civil parish in Berkshire, England, the westernmost area within the Greater London Built-up Area, Greater London Urban Area and the administrative centre of the Bracknell Forest, Borough of Bracknell Forest. It l ...
, UK; Manila, Philippines
Chennai, India Chennai (, ), formerly known as Madras (List of renamed Indian cities and states#Tamil Nadu, the official name until 1996), is the capital city of Tamil Nadu, the southernmost states and territories of India, Indian state. The largest city ...
; Hyderabad, India; Noida, India; Hortolandia and Porto Alegre, Brazil;
Bratislava Bratislava (, also ; ; german: Preßburg/Pressburg ; hu, Pozsony) is the Capital city, capital and largest city of Slovakia. Officially, the population of the city is about 475,000; however, it is estimated to be more than 660,000 — approxim ...
, Slovakia; Łódź, Poland; Panama City, Panama; Dublin and Limerick, Ireland;
Casablanca Casablanca, also known in Arabic as Dar al-Bayda ( ar, الدَّار الْبَيْضَاء, al-Dār al-Bayḍāʾ, ; ber, ⴹⴹⴰⵕⵍⴱⵉⴹⴰ, ḍḍaṛlbiḍa, : "White House") is the largest city in Morocco and the country's econom ...
, Morocco and Montpellier, France. The US and India are the only countries that have all Dell's business functions and provide support globally: research and development, manufacturing, finance, analysis, and customer care.


Manufacturing

From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time (JIT) manufacturing approach, which minimizes
inventory Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying the shap ...
costs. Low inventory is another signature of the Dell business model—a critical consideration in an industry where components depreciate very rapidly. Dell's manufacturing process covers assembly, software installation, functional testing (including "burn-in"), and quality control. Throughout most of the company's history, Dell manufactured desktop machines in-house and contracted out the manufacturing of base notebooks for configuration in-house. The company's approach has changed, as cited in the 2006 Annual Report, which states, "We are continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships." ''The Wall Street Journal'' reported in September 2008 that "Dell has approached contract computer manufacturers with offers to sell" their plants. By the late 2000s, Dell's "configure to order" approach of manufacturing—delivering individual PCs configured to customer specifications from its US facilities was no longer as efficient or competitive with high-volume Asian contract manufacturers as PCs became powerful low-cost commodities. Assembly of desktop computers for the North American market formerly took place at Dell plants in Austin, Texas, (original location) and
Lebanon, Tennessee Lebanon is the county seat of Wilson County, Tennessee, United States. The population was 38,431 at the 2020 census. Lebanon is located in Middle Tennessee, approximately east of downtown Nashville. Lebanon is part of the Nashville Metropolit ...
, (opened in 1999), which were closed in 2008 and early 2009, respectively. The plant in Winston-Salem, North Carolina, opened in 2005 but ceased operations in November 2010. Most of the work that used to take place in Dell's US plants was transferred to contract manufacturers in Asia and Mexico, or some of Dell's own factories overseas. The Miami, Florida, facility of its Alienware subsidiary remains in operation, while Dell continues to produce its servers (its most profitable products) in Austin, Texas. Dell assembled computers for the EMEA market at the Limerick facility in the Republic of Ireland, and once employed about 4,500 people in that country. Dell began manufacturing in Limerick in 1991 and went on to become Ireland's largest exporter of goods and its second-largest company and foreign investor. On January 8, 2009, Dell announced that it would move all Dell manufacturing in Limerick to Dell's new plant in the Polish city of Łódź by January 2010. European Union officials said they would investigate a €52.7million aid package the Polish government used to attract Dell away from Ireland. European Manufacturing Facility 1 (EMF1, opened in 1990) and EMF3 form part of the
Raheen Industrial Estate Raheen () is a large suburb of Limerick, Ireland. Initially developed to ease population overspill from the city of Limerick, Raheen is socioeconomically diverse, ranging from older, poor class housing estates to relatively affluent areas. His ...
near Limerick. EMF2 (previously a Wang facility, later occupied by Flextronics, situated in Castletroy) closed in 2002, and Dell Inc. has consolidated production into EMF3 (EMF1 now contains only offices). Subsidies from the Polish government did keep Dell for a long time. After ending assembly in the Limerick plant the Cherrywood Technology Campus in Dublin was the largest Dell office in the republic with over 1200 people in sales (mainly UK & Ireland), support (enterprise support for EMEA) and research and development for cloud computing, but no more manufacturing exceptIDA Ireland website o
Dell
visited October 12, 2012
Dell's Alienware subsidiary, which manufactures PCs in an Athlone, Ireland, plant. Whether this facility will remain in Ireland is not certain. Dell started production at EMF4 in Łódź, Poland, in late 2007. Dell moved desktop, notebook and PowerEdge server manufacturing for the South American market from the
Eldorado do Sul Eldorado do Sul is a municipality in the state of Rio Grande do Sul, Brazil. It is located in the metropolitan area of Porto Alegre, the state's capital and largest city, opposite the capital on the right bank of Guaíba River. Population: 41,902 ...
plant opened in 1999, to a new plant in Hortolandia, Brazil, in 2007.


Products


Scope and brands

The corporation markets specific brand names to different market segments. Its Business/Corporate class includes: *
OptiPlex OptiPlex (a portmanteau of "optimal" and "-plex") is a line of business-oriented desktop and all-in-one computers aimed at corporate enterprises, healthcare, government, and education markets released in 1993 by Dell. The systems typically cont ...
(office
desktop computer A desktop computer (often abbreviated desktop) is a personal computer designed for regular use at a single location on or near a desk due to its size and power requirements. The most common configuration has a case that houses the power supply ...
systems) * Dimension (home desktop computer systems) * Vostro (office/small business desktop and
notebook A notebook (also known as a notepad, writing pad, drawing pad, or legal pad) is a book or stack of paper pages that are often ruled and used for purposes such as note-taking, journaling or other writing, drawing, or scrapbooking. History ...
systems) * n Series (desktop and notebook computers shipped with Linux or FreeDOS installed) * Latitude (business-focused notebooks) * Precision ( workstation systems and high-performance "Mobile Workstation" notebooks), * PowerEdge (business servers) * PowerVault (direct-attach and network-attached storage) * Force10 ( network switches) * PowerConnect ( network switches) *
Dell Compellent Dell Compellent, formerly Compellent Technologies, Inc., was an American manufacturer of enterprise computer data storage systems that provided block-level storage resources to small and medium sized IT infrastructures. The company was founded in ...
( storage area networks) * EqualLogic (enterprise class iSCSI SANs)
Dell EMR
(electronic medical records) Dell's Home Office/Consumer class includes: * Inspiron (budget desktop and notebook computers) * XPS (high-end desktop and notebook computers) * G Series (high/medium-performance gaming laptops) * Alienware (high-performance gaming systems) * Venue (Tablets Android / Windows) Dell's Peripherals class includes USB keydrives,
LCD televisions Liquid-crystal-display televisions (LCD TVs) are television sets that use liquid-crystal displays to produce images. They are, by far, the most widely produced and sold television display type. LCD TVs are thin and light, but have some disadvanta ...
, and printers;
Dell monitors Dell sells LCD-based computer monitors. Dell bundles monitors with its desktop computers as package deals, as well as selling them separately through their online store and some other retailers. CRT monitors Dell no longer sells CRT monitors ...
includes LCD TVs, plasma TVs and
projectors A projector or image projector is an optical device that projects an image (or moving images) onto a surface, commonly a projection screen. Most projectors create an image by shining a light through a small transparent lens, but some newer types ...
for HDTV and
monitors Monitor or monitor may refer to: Places * Monitor, Alberta * Monitor, Indiana, town in the United States * Monitor, Kentucky * Monitor, Oregon, unincorporated community in the United States * Monitor, Washington * Monitor, Logan County, West Vir ...
. Dell UltraSharp is further a high-end brand of
monitors Monitor or monitor may refer to: Places * Monitor, Alberta * Monitor, Indiana, town in the United States * Monitor, Kentucky * Monitor, Oregon, unincorporated community in the United States * Monitor, Washington * Monitor, Logan County, West Vir ...
. Dell service and support brands include the ''Dell Solution Station'' (extended domestic support services, previously "Dell on Call"), '' Dell Support Center'' (extended support services abroad), ''Dell Business Support'' (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), ''Dell Everdream Desktop Management'' (" Software as a Service"
remote-desktop management In computing, the term remote desktop refers to a software- or operating system feature that allows a personal computer's desktop environment to be run remotely off of one system (usually a PC, but the concept applies equally to a server (comp ...
, originally a SaaS company founded by Elon Musk's cousin, Lyndon Rive, which Dell bought in 2007), and ''Your Tech Team'' (a support-queue available to home users who purchased their systems either through Dell's website or through Dell phone-centers). Discontinued products and brands include
Axim Axim is a coastal town and the capital of Nzema East Municipal district, a district in Western Region of South Ghana. Axim lies 64 kilometers west of the port city of Sekondi-Takoradi in the Western Region, west of Cape Three Points. Axim has ...
(
PDA PDA may refer to: Science and technology * Patron-driven acquisition, a mechanism for libraries to purchase books *Personal digital assistant, a mobile device * Photodiode array, a type of detector * Polydiacetylenes, a family of conducting poly ...
; discontinued April 9, 2007), Dimension (home and small office desktop computers; discontinued July 2007), Dell Digital Jukebox (MP3 player; discontinued August 2006), Dell PowerApp (application-based servers), Dell Optiplex (desktop and tower computers previously supported to run server and desktop operating systems), Dell Unix (an
SVR4 Unix System V (pronounced: "System Five") is one of the first commercial versions of the Unix operating system. It was originally developed by AT&T and first released in 1983. Four major versions of System V were released, numbered 1, 2, 3, an ...
-based Unix operating system for its Dell-branded PCs and workstations; discontinued in 1993) and Dell Mobile Connect(Windows Mobile application; discontinued July 31st, 2022).


Security


Self-signed root certificate

In November 2015, it emerged that several Dell computers had shipped with an identical pre-installed root certificate known as "eDellRoot". This raised such security risks as attackers impersonating HTTPS-protected websites such as Google and Bank of America and malware being signed with the certificate to bypass Microsoft software filtering. Dell apologized and offered a removal tool.


Dell Foundation Services

Also in November 2015, a researcher discovered that customers with diagnostic program Dell Foundation Services could be digitally tracked using the unique service tag number assigned to them by the program. This was possible even if a customer enabled private browsing and deleted their
browser cookie HTTP cookies (also called web cookies, Internet cookies, browser cookies, or simply cookies) are small blocks of data created by a web server while a user is browsing a website and placed on the user's computer or other device by the user's we ...
s. ''
Ars Technica ''Ars Technica'' is a website covering news and opinions in technology, science, politics, and society, created by Ken Fisher and Jon Stokes in 1998. It publishes news, reviews, and guides on issues such as computer hardware and software, sci ...
'' recommended that Dell customers uninstall the program until the issue was addressed.


Commercial aspects


Organization

The board consists of nine directors. Michael Dell, the founder of the company, serves as chairman of the board and chief executive officer. Other board members include Don Carty,
Judy Lewent Judith Carol Lewent is a business executive who served as chief financial officer of Merck & Co. from 1990 until her retirement from the company in 2007. Since her retirement from Merck, she has continued to serve on multiple Board of directors, c ...
,
Klaus Luft Klaus Siegfried Luft (born October 22, 1941) is a German executive and entrepreneur. He is the founder and chairman of the Alex Mandl, and Sam Nunn">Alex J. Mandl">Alex Mandl, and Sam Nunn. Shareholder">Sam_Nunn.html" ;"title="Alex J. Mandl">Alex Mandl, and Sam Nunn">Alex J. Mandl">Alex Mandl, and Sam Nunn. Shareholders elect the nine board members at meetings, and those board members who do not get a majority of votes must submit a resignation to the board, which will subsequently choose whether or not to accept the resignation. The board of directors usually sets up five committees having oversight over specific matters. These committees include the Audit Committee, which handles accounting issues, including auditing and reporting; the Compensation Committee, which approves compensation for the CEO and other employees of the company; the Finance Committee, which handles financial matters such as proposed mergers and acquisitions; the Governance and Nominating Committee, which handles various corporate matters (including the nomination of the board); and the Antitrust Compliance Committee, which attempts to prevent company practices from violating antitrust laws. Day-to-day operations of the company are run by the Global Executive Management Committee, which sets Strategic management, strategic direction. Dell has regional senior vice-presidents for countries other than the United States.


Marketing

Dell advertisements have appeared in several types of media including television, the Internet, magazines, catalogs, and newspapers. Some of Dell Inc's marketing strategies include lowering prices at all times of the year, free bonus products (such as Dell printers), and free shipping to encourage more sales and stave off competitors. In 2006, Dell cut its prices in an effort to maintain its 19.2% market share. This also cut profit margins by more than half, from 8.7 to 4.3 percent. To maintain its low prices, Dell continues to accept most purchases of its products via the Internet and through the telephone network, and to move its customer-care division to India and
El Salvador El Salvador (; , meaning " The Saviour"), officially the Republic of El Salvador ( es, República de El Salvador), is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south b ...
. A popular United States television and print ad campaign in the early 2000s featured the actor Ben Curtis playing the part of "Steven", a lightly mischievous blond-haired youth who came to the assistance of bereft computer purchasers. Each television advertisement usually ended with Steven's catch-phrase: "Dude, you're gettin' a Dell!" A subsequent advertising campaign featured interns at Dell headquarters (with Curtis' character appearing in a small cameo at the end of one of the first commercials in this particular campaign). In 2007, Dell switched advertising agencies in the US from BBDO to Working Mother Media. In July 2007, Dell released new advertising created by Working Mother to support the Inspiron and XPS lines. The ads featured music from the Flaming Lips and
Devo Devo (, originally ) is an American rock band from Akron, Ohio, formed in 1973. Their classic line-up consisted of two sets of brothers, the Mothersbaughs (Mark and Bob) and the Casales (Gerald and Bob), along with Alan Myers. The band had a ...
who re-formed especially to record the song in the ad "Work it Out". Also in 2007, Dell began using the slogan "Yours is here" to say that it customizes computers to fit customers' requirements. Beginning in 2011, Dell began hosting a conference in Austin, Texas, at the Austin Convention Center titled "Dell World". The event featured new technology and services provided by Dell and Dell's partners. In 2011, the event was held October 12–14. In 2012, the event was held December 11–13. In 2013, the event was held December 11–13. In 2014, the event was held November 4–6.


Dell partner program

In late 2007, Dell Inc. announced that it planned to expand its program to value-added resellers (VARs), giving it the official name of "Dell Partner Direct" and a new Website. Dell India has started Online Ecommerce website with its Dell Partner www.compuindia.com GNG Electronics Pvt Ltd termed as Dell Express Ship Affiliate(DESA). The main objective was to reduce the delivery time. Customers who visit Dell India official site are given the option to buy online which then will be redirected to Dell affiliate website compuindia.com.


Global analytics

Dell also operates a captive analytics division which supports pricing, web analytics, and supply chain operations. DGA operates as a single, centralized entity with a global view of Dell's business activities. The firm supports over 500 internal customers worldwide and has created a quantified impact of over $500 million.


Criticisms of marketing of laptop security

In 2008, Dell received press coverage over its claim of having the world's most secure laptops, specifically, its Latitude D630 and Latitude D830. At Lenovo's request, the (US) National Advertising Division (NAD) evaluated the claim, and reported that Dell did not have enough evidence to support it.


Retail

Dell first opened their retail stores in India.


United States

In the early 1990s, Dell sold its products through
Best Buy Best Buy Co. Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebra ...
, Costco and Sam's Club stores in the United States. Dell stopped this practice in 1994, citing low profit margins on the business, exclusively distributing through a direct-sales model for the next decade. In 2003, Dell briefly sold products in Sears stores in the US. In 2007, Dell started shipping its products to major retailers in the US once again, starting with Sam's Club and Wal-Mart. Staples, the largest office-supply retailer in the US, and
Best Buy Best Buy Co. Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebra ...
, the largest electronics retailer in the US, became Dell retail partners later that same year.


=Kiosks

= Starting in 2002, Dell opened
kiosk Historically, a kiosk () was a small garden pavilion open on some or all sides common in Iran, Persia, the Indian subcontinent, and in the Ottoman Empire from the 13th century onward. Today, several examples of this type of kiosk still exist ...
locations in the United States to allow customers to examine products before buying them directly from the company. Starting in 2005, Dell expanded
kiosk Historically, a kiosk () was a small garden pavilion open on some or all sides common in Iran, Persia, the Indian subcontinent, and in the Ottoman Empire from the 13th century onward. Today, several examples of this type of kiosk still exist ...
locations to include shopping malls across Australia, Canada, Singapore and Hong Kong. On January 30, 2008, Dell announced it would shut down all 140 kiosks in the US due to expansion into retail stores. By June 3, 2010, Dell had also shut down all of its mall kiosks in Australia.


Retail stores

, Dell products shipped to one of the largest office supply retailers in Canada, Staples Business Depot. In April 2008, Future Shop and
Best Buy Best Buy Co. Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebra ...
began carrying a subset of Dell products, such as certain desktops, laptops, printers, and monitors. Since some shoppers in certain markets show reluctance to purchase technological products through the phone or the Internet, Dell has looked into opening retail operations in some countries in Central Europe and Russia. In April 2007, Dell opened a retail store in Budapest. In October of the same year, Dell opened a retail store in Moscow. In the UK, HMV's flagship Trocadero store has sold Dell XPS PCs since December 2007. From January 2008 the UK stores of DSGi have sold Dell products (in particular, through Currys and PC World stores). As of 2008, the large supermarket chain Tesco has sold Dell laptops and desktops in outlets throughout the UK. In May 2008, Dell reached an agreement with the office supply chain, Officeworks (part of
Coles Group Coles Group Limited is an Australian public company operating several retail chains. Its chief operations are primarily concerned with the sale of food and groceries through its flagship supermarket chain Coles Supermarkets, and the sale of l ...
), to stock a few modified models in the Inspiron desktop and notebook range. These models have slightly different model numbers, but almost replicate the ones available from the Dell Store. Dell continued its retail push in the Australian market with its partnership with Harris Technology (another part of Coles Group) in November of the same year. In addition, Dell expanded its retail distributions in Australia through an agreement with the discount electrical retailer, The Good Guys, known for "Slashing Prices". Dell agreed to distribute a variety of makes of both desktops and notebooks, including
Studio A studio is an artist or worker's workroom. This can be for the purpose of acting, architecture, painting, pottery (ceramics), sculpture, origami, woodworking, scrapbooking, photography, graphic design, filmmaking, animation, industrial design ...
and XPS systems in late 2008. Dell and
Dick Smith Electronics Dick Smith Holdings Limited (formerly Dick Smith, Dick Smith Electronics or DSE) was an Australian chain of retail stores that sold consumer electronics goods, hobbyist electronic components, and electronic project kits. The chain expanded succ ...
(owned by Woolworths Limited) reached an agreement to expand within Dick Smith's 400 stores throughout Australia and New Zealand in May 2009 (1 year since Officeworks—owned by Coles Group—reached a deal). The retailer has agreed to distribute a variety of Inspiron and
Studio A studio is an artist or worker's workroom. This can be for the purpose of acting, architecture, painting, pottery (ceramics), sculpture, origami, woodworking, scrapbooking, photography, graphic design, filmmaking, animation, industrial design ...
notebooks, with minimal Studio desktops from the Dell range. , Dell continues to run and operate its various kiosks in 18 shopping centers throughout Australia. On March 31, 2010, Dell announced to Australian Kiosk employees that they were shutting down the Australian/New Zealand Dell kiosk program. In Germany, Dell is selling selected smartphones and notebooks via Media Markt and Saturn, as well as some shopping websites.


Competition

Dell's major competitors include
Lenovo Lenovo Group Limited, often shortened to Lenovo ( , ), is a Chinese Multinational corporation, multinational technology company specializing in designing, manufacturing, and marketing consumer electronics, Personal computer, personal computers, ...
Hewlett-Packard (HP), Hasee, Acer,
Fujitsu is a Japanese multinational information and communications technology equipment and services corporation, established in 1935 and headquartered in Tokyo. Fujitsu is the world's sixth-largest IT services provider by annual revenue, and the la ...
, Toshiba, Gateway, Sony, Asus, MSI, Panasonic, Samsung and Apple. Dell and its subsidiary, Alienware, compete in the enthusiast market against AVADirect, Falcon Northwest, VoodooPC (a subsidiary of HP), and other manufacturers. In the second quarter of 2006, Dell had between 18% and 19% share of the worldwide personal computer market, compared to HP with roughly 15%. , Dell lost its lead in the PC business to Hewlett-Packard. Both Gartner and IDC estimated that in the third quarter of 2006, HP shipped more units worldwide than Dell did. Dell's 3.6% growth paled in comparison to HP's 15% growth during the same period. The problem got worse in the fourth quarter, when Gartner estimated that Dell PC shipments declined 8.9% (versus HP's 23.9% growth). As a result, at the end of 2006 Dell's overall PC market share stood at 13.9% (versus HP's 17.4%). IDC reported that Dell lost more server market share than any of the top four competitors in that arena. IDC's Q4 2006 estimates show Dell's share of the server market at 8.1%, down from 9.5% in the previous year. This represents an 8.8% loss year-over-year, primarily to competitors EMC and IBM. As of 2021, Dell is the third-largest PC manufacturer after Lenovo and HP.


Partnership with EMC

In 2001, Dell and EMC entered into a partnership whereby both companies jointly design products, and Dell provided support for certain EMC products including midrange storage systems, such as
fibre channel Fibre Channel (FC) is a high-speed data transfer protocol providing in-order, lossless delivery of raw block data. Fibre Channel is primarily used to connect computer data storage to servers in storage area networks (SAN) in commercial data cen ...
and iSCSI storage area networks. The relationship also promotes and sells OEM versions of backup, recovery, replication and archiving software. On December 9, 2008, Dell and EMC announced the multi-year extension, through 2013, of the strategic partnership with EMC. In addition, Dell expanded its product lineup by adding the EMC Celerra NX4 storage system to the portfolio of Dell/EMC family of networked storage systems and partnered on a new line of
data deduplication In computing, data deduplication is a technique for eliminating duplicate copies of repeating data. Successful implementation of the technique can improve storage utilization, which may in turn lower capital expenditure by reducing the overall amou ...
products as part of its TierDisk family of
data storage device Data storage is the recording (storing) of information (data) in a storage medium. Handwriting, phonographic recording, magnetic tape, and optical discs are all examples of storage media. Biological molecules such as RNA and DNA are conside ...
s. On October 17, 2011, Dell discontinued reselling all EMC storage products, ending the partnership 2 years early. Later Dell would acquire and merge with EMC in the largest tech merger to date.


Environmental record

Dell committed to reducing greenhouse gas emissions from its global activities by 40% by 2015, with the 2008 fiscal year as the baseline year. It is listed in
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...
's Guide to Greener Electronics that scores leading electronics manufacturers according to their policies on sustainability, climate and energy and how green their products are. In November 2011, Dell ranked 2nd out of 15 listed electronics makers (increasing its score to 5.1 from 4.9, which it gained in the previous ranking from October 2010). Dell was the first company to publicly state a timeline for the elimination of toxic polyvinyl chloride (PVC) and brominated flame retardants (BFRs), which it planned to phase out by the end of 2009. It revised this commitment and now aims to remove toxics by the end of 2011 but only in its computing products. In March 2010, Greenpeace activists protested at Dell offices in Bangalore, Amsterdam and Copenhagen calling for Dell's founder and CEO Michael Dell to "drop the toxics" and claiming that Dell's aspiration to be 'the greenest technology company on the planet' was "hypocritical". Dell has launched its first products completely free of PVC and BFRs with the G-Series monitors (G2210 and G2410) in 2009. In its 2012 report on progress relating to conflict minerals, the Enough Project rated Dell the eighth-highest of 24 consumer electronics companies.


Green initiatives

Dell became the first company in the information technology industry to establish a product- recycling goal (in 2004) and completed the implementation of its global consumer recycling-program in 2006. On February 6, 2007, the National Recycling Coalition awarded Dell its "Recycling Works" award for efforts to promote producer responsibility.Winners of NRC's "Recycling Works" Award
National Recycling Coalition
On July 19, 2007, Dell announced that it had exceeded targets in working to achieve a multi-year goal of recovering 275 million pounds of computer equipment by 2009. The company reported the recovery of 78 million pounds (nearly 40,000 tons) of IT equipment from customers in 2006, a 93-percent increase over 2005; and 12.4% of the equipment Dell sold seven years earlier.Dell Ahead of Schedule to Achieve Multi-Year Product Recycling Goal
Dell. July 19, 2007
On June 5, 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term. The company launched a zero-carbon initiative that includes: # reducing Dell's carbon intensity by 15 percent by 2012 # requiring primary suppliers to report carbon emissions data during quarterly business reviews # partnering with customers to build the "greenest PC on the planet" # expanding the company's carbon-offsetting program, "Plant a Tree for Me" Dell reports its environmental performance in an annual
Corporate Social Responsibility Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
(CSR) Report that follows the Global Reporting Initiative (GRI) protocol. Dell's 2008 CSR report ranked as "Application Level B" as "checked by GRI". The company aims to reduce its external environmental impact through an energy-efficient evolution of products, and also reduce its direct operational impact through energy-efficiency programs.


Criticism

In the 1990s, Dell switched from using primarily ATX
motherboard A motherboard (also called mainboard, main circuit board, mb, mboard, backplane board, base board, system board, logic board (only in Apple computers) or mobo) is the main printed circuit board (PCB) in general-purpose computers and other expand ...
s and
PSU PSU may refer to: Organizations Military *Police Support Unit, a paramilitary wing of the Zimbabwe Republic Police *Port Security Unit, a U.S. Coast Guard expeditionary force protection unit Political parties * Parti Socialiste Unifié (disambig ...
to using boards and power supplies with mechanically identical but differently wired connectors. This meant customers wishing to upgrade their hardware would have to replace parts with scarce Dell-compatible parts instead of commonly available parts. While motherboard power connections reverted to the industry standard in 2003, Dell remains secretive about their motherboard pin-outs for peripherals (such as MMC readers and power on/off switches and LEDs). In 2005, complaints about Dell more than doubled to 1,533, after earnings grew 52% that year. In 2006, Dell acknowledged that it had problems with customer service. Issues included call transfers of more than 45% of calls and long wait times. Dell's blog detailed the response: "We're spending more than a $100 million—and a lot of blood, sweat, and tears of talented people—to fix this." Later in the year, the company increased its spending on customer service to $150 million. Since 2018, Dell has seen significant increase in consumer satisfaction. Moreover, their customer service has been praised for its prompt and accurate answers to most questions, especially those directed to their social media support. On August 17, 2007, Dell Inc. announced that after an internal investigation into its accounting practices it would restate and reduce earnings from 2003 through to the first quarter of 2007 by a total amount of between $50 million and $150 million, or 2 cents to 7 cents per share. The investigation, begun in November 2006, resulted from concerns raised by the US Securities and Exchange Commission over some documents and information that Dell Inc. had submitted. It was alleged that Dell had not disclosed large exclusivity payments received from Intel for agreeing not to buy processors from rival manufacturer AMD. In 2010 Dell finally paid $100 million to settle the SEC's charges of fraud. Michael Dell and other executives also paid penalties and suffered other sanctions, without admitting or denying the charges. In July 2009, Dell apologized after drawing the ire of the Taiwanese Consumer Protection Commission for twice refusing to honor a flood of orders against unusually low prices offered on its Taiwanese website. In the first instance, Dell offered a 19" LCD panel for $15. In the second instance, Dell offered its Latitude E4300 notebook at NT$18,558 (US$580), 70% lower than the usual price of NT$60,900 (US$1900). Concerning the E4300, rather than honor the discount taking a significant loss, the firm withdrew orders and offered a voucher of up to NT$20,000 (US$625) a customer in compensation. The consumer rights authorities in Taiwan fined Dell NT$1 million (US$31250) for customer rights infringements. Many consumers sued the firm for unfair compensation. A court in southern Taiwan ordered the firm to deliver 18 laptops and 76 flat-panel monitors to 31 consumers for NT$490,000 (US$15,120), less than a third of the normal price. The court said the event could hardly be regarded as mistakes, as the prestigious firm said the company mispriced its products twice in Taiwanese website within 3 weeks. After Michael Dell made a $24.4 billion buyout bid in August 2013, activist shareholder Carl Icahn sued the company and its board in an attempt to derail the bid and promote his own forthcoming offer. In 2020, the
Australian Strategic Policy Institute The Australian Strategic Policy Institute (ASPI) is a defence and strategic policy think tank based in Canberra, Australian Capital Territory, founded by the Australian government and funded by the Australian and overseas governments, industry ...
accused at least 82 major brands, including BYD, of being connected to forced Uyghur labor in Xinjiang.


See also

* List of computer system manufacturers *
List of Dell ownership activities This list of Dell ownership activities delineates mergers, acquisitions, divestitures, and stakes of Dell. Acquisitions and mergers Stakes Divestitures Notes References {{List of mergers and acquisitions by Dell 01 Dell Del ...
* Configurator * Mass customization


References


Further reading


Dell Company Information
* Michael Dell, Catherine Fredman, ''Direct From Dell'', *
Dell as the seventh-most-admired computer company in the USAeighth overalland seventh worldwide
''
Fortune Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck * Wealth * Fortune, a prediction made in fortune-telling * Fortune, in a fortune cookie Arts and entertainment Film and television * ''The Fortune'' (1931 film) ...
'', ''Most Admired Companies 2006''. * '' BBC News'', August 21, 2003
''Dell makes grab for market share''
* '' USA Today'', January 20, 2001
''Dell business model turns to muscle as rivals struggle''
* ''
Ubuntu Forums __NOTOC__ The Ubuntu Forums is the official forum for the Ubuntu operating system. As of May 2022, The Ubuntu Forums has 2.1 million registered members and more than 2.2 million threads. The Ubuntu Forums currently runs on the forum software vBul ...
'', June 7, 2007
''Dell's with Ubuntu called Dellbuntu''


External links

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