Michael Dell, founder and chief executive officer of Dell Inc. (NASDAQ:DELL) explained to the employees of the company that his objective and reasons in taking the company private is very clear.
He emphasized that he wants take Dell Inc. (NASDAQ:DELL) private because it allows the company to continue its transformation efforts but in a “much faster” pace. In addition, he explained that the private investors that share the company’s strategic vision to achieve it and are willing make some tough trade-offs, attain success down the road.
Furthermore, Mr. Dell believed that it would be more difficult for the PC maker to move fast and aggressively if Dell Inc. (NASDAQ:DELL) remains as a public company because of the short-term focus of the market.
Mr. Dell is confident that the company still has an opportunity in its PC business. He pointed out. “The fact is, we can’t afford not to continue investing for the future when you look at the opportunity ahead for us and our customers.”
According to Mr. Dell, the company’s “strategy is solid” and the management aligned its business with the end-to-end needs of its customers—end user computing, enterprise solutions, and software and services. He also said that Dell Inc. (NASDAQ:DELL) invested roughly $10 billion to build its portfolio solutions.
“We’ve built or acquired a number of forward-looking capabilities that I believe are truly best in class. The world is headed in our direction toward modern, open, scalable architectures, and there are no plans to alter the strategy,” said Mr. Dell.
He explained that the company invested in its PC business. Mr. Dell emphasized that PC’s are significant for the company’s business and an important tool for its customers, although the IDC’s recently released report indicated that PC shipments continue to decline.
Mr. Dell said, “Dell was the only one of the top-five PC companies to gain shares sequentially and year over year. Great work team! There is still an opportunity in PC’s. The global PC installed base is roughly a billion-and-a-half, and millions of people in emerging markets continue to come online every week. Overwhelmingly, PC’s are still how business gets done around the world. We are fine tuning and investing in our business to innovate and compete more aggressively where growth is happening.”
He also said that Dell Inc. (NASDAQ:DELL) is different from its competitors in the market because it does not protect legacy systems, and it doesn’t care about mainframes, niche chipsets, or any other industry relics.
Mr. Dell said, “We’re about the future and helping customers transition to next-generation solutions.” Its mid-market focus is a huge differentiator because it is the biggest segment of addressable market where growth is happening.
“None of the big IT companies are giving these customers much love, but we are. We are bringing a new class of capabilities within their reach,” he added.
Furthermore, Mr. Dell emphasized that he is “more committed than ever to Dell Inc. (NASDAQ:DELL) and to its employees.” He is part of the conversations regarding the future of the company, which is a dynamic situation. He also mentioned the Blackstone Group (NYSE:BX)’s decision to exit from its bid, but his pending transaction with Silver Lake to take the company private is moving forward.