#dell

Jason Evangelho:

Last month Dell launched a pair of UltraSharp monitors boasting 4K resolution, and dangled a sweet carrot in front of our early adopting paws: a forthcoming 28-inch Ultra HD monitor that would retail for less than $1000. Today at CES 2014 Dell revealed it, along with an aggressive price tag: $699.

Spec-wise, there are some caveats (like the refresh rate). But that price is pretty amazing. And so you have to wonder: can an Apple “Retina” Cinema Display be far behind? Sure, it may cost 2x what Dell is charging, but I still have imagine we see it at some point this year.

Serena Saitto, Peter Burrows & Aaron Ricadela dive deep into just what it took to take Dell private. One anecdote from this past summer:

Durban sketched out the LBO idea as they wandered for two hours through the grounds of the beach resort — a practice Dell had picked up from walking meetings he’d had with Apple CEO Steve Jobs in years past.

We often hear about Steve "Fuck Michael Dell" Jobs. But the two clearly had a professional relationship throughout the years as well — such as taking long walks on the beach…

But seriously, what a pain in the ass it was to just give the money back to the shareholders.

Shira Ovide:

Mr. Dell’s proposal to buy the computer company for nearly $25 billion is expected to win approval in a stockholder vote that ends Thursday, according to people familiar with the matter. Dell has said it expects to be a private company by the end of October.

So Dell, for the first time since it went public 25 years ago, will largely become a one-man show, just as it was when Mr. Dell started the company in his college dorm room in 1984. He is set to own about 75% of the company and remain CEO, while private-equity firm Silver Lake will be a minority owner.

This will be nothing if not fascinating to watch. If Dell succeeds, who will be the next of the former tech titans to go private? If Dell fails, will it effectively take that possibility off the table for everyone else?

The competition has been aggressive during this period of uncertainty, but we are, as we have always been, determined to prove to you why Dell is the best solutions provider to meet your needs.

Michael Dell, in an open letter to Dell’s “customers and partners” about his ongoing efforts to take the struggling company private. 

Just how bad is the PC industry right now? Focus on the “solutions provider” part. IBM doesn’t get nearly enough credit for being way ahead on this move.

They’re feeling confident. … There’s going to be a few years of pain for the rest of the industry, and Dell is going to provide it.

Patrick Moorhead, head of Moor Insights and Strategy, who attended a recent gathering of analysts to hear the new vision for the (presumably) soon-to-be-private Dell.

Dell is going back on the offensive. And if I were a PC or server-maker, these statements would scare the shit out of me.

Michael Mace on the plummeting PC sales:

This is an existential shock for the PC companies. It’s like discovering that your house was built over a vast, crumbling sinkhole.

Great read. Just as much about Microsoft’s future as Dell’s. And he makes a good case for Dell seeing the signs of the PC industry decline (slightly) early and the bid to go private being a direct result of that. It’s easier to transform a ship into a submarine when it’s not already underwater.

Good reminder from Alex Wilhelm of The Next Web about Microsoft’s involvement in Dell’s bid to take itself private (which is now under attack from a few directions):

Microsoft is providing just over 8 percent of the needed funds to take Dell private. Why would it do that, if it will not pick up any control over the massive OEM partner that is ailing? In short, Microsoft is currently incredibly cash-rich. With more than $60 billion in cash and equivalents and short-term investments, the company can afford the loan.

And, the general scuttlebutt is that Microsoft is getting a pretty decent interest rate on the loan itself as well as using non-repatriated funds, allowing its foreign cash to be useful.

Seems like a smart way to use some overseas money.

The company faces an extended period of uncertainty and transition that will not be good for its customers.

HP Chief Meg Whitman in a statement about the Dell buyout deal.

But what’s great about the comment is that it just as easily could apply to HP. From October of last year:

Ms. Whitman told a meeting of Wall Street analysts that they should expect sharply lower revenue and profits. She also told them not to expect the company to fully right itself before 2016. “We have much more work to do,” she said.

In other words, the company faces an extended period of uncertainty and transition that will not be good for its customers.

Mary Jo Foley for ZDNet:

It’s a tumultous time to be a Microsoft OEM, no doubt about it. The PC market is in decline, revenue-wise. Microsoft is competing with its own OEMs with its Surface line of products. And now Microsoft is providing $2 billion loan to one of its largest OEMs, Dell. I wonder how many Windows OEMs will still be in existence in a year or two, and how many will be backing Windows as just one of several different platforms to hedge their bets.

Glory days, well they’ll pass you by.

theonion
theonion:



Dell Acquired By Gateway 2000 In Merger Of 2 Biggest Names In Computer Technology: Full Story

"At press time, the web was abuzz with rumors that the new company will roll out a revamped version of the iconic Dell Dimension Pentium desktop, which sources said will come preloaded with Windows 95 and be sold in Gateway’s beloved and ubiquitous cow-print boxes."

Nailed it.

theonion:

Dell Acquired By Gateway 2000 In Merger Of 2 Biggest Names In Computer Technology: Full Story

"At press time, the web was abuzz with rumors that the new company will roll out a revamped version of the iconic Dell Dimension Pentium desktop, which sources said will come preloaded with Windows 95 and be sold in Gateway’s beloved and ubiquitous cow-print boxes."

Nailed it.

Ben Worthen and Anupreeta Das for WSJ:

Partly at issue is their commercial relationship. Dell, the world’s third-largest maker of personal computers, is one of the biggest channels for Microsoft’s Windows operating software. The sides are discussing how Microsoft’s investment in Dell would alter that commercial arrangement. Under one scenario being discussed, Dell would agree to use Microsoft’s Windows software to power the vast majority of its devices, one of the people has said.

If you can’t get them to use your software because they want to, pay em. Always a winning strategy.