Dell To Stay Out Of Smartphones, Focus On Enterprise

Dell To Stay Out Of Smartphones, Focus On Enterprise
By mikeandryan [CC BY 2.0], via Wikimedia Commons

This week shareholders finally cleared Dell Inc. (NASDAQ:DELL) founder, chairman and CEO Michael Dell to complete the leveraged buyout he proposed seven months ago. Now he’s talking about the future of his company after he takes it private.

Dell To Stay Out Of Smartphones, Focus On Enterprise

Michael on CNBC

He appeared on CNBC’s “Squawk on the Street” today to discuss his plans for the struggling company. He listed five main areas the company will focus on as it moves forward. Dell Inc. (NASDAQ:DELL) will now focus on enhancing its solutions for enterprise customers, increasing sales capacity, cloud client computing services, emerging market sales, and just simply enhancing the experiences of the company’s customers.

Seth Klarman’s Foundation Invested In These Three Hedge Funds

Seth KlarmanMany well-known hedge fund managers are also philanthropists, and many of them have their own foundations. Seth Klarman of Baupost is one of those with his own foundation, and he invested in a handful of hedge funds through his foundation. This list of Klarman's favorite hedge funds is based on the Klarman Family Foundation's 990 Read More

Mr. Dell said they would work on changing the company’s focus from a quarterly one to a five or even 10-year focus as well while “doubling down” on investments that are designed to serve the company’s customers.

Dell and the private cloud

Right now he estimates that the computing industry is about $3 trillion a year, and Dell Inc. (NASDAQ:DELL) has about a 2 percent share of that. He said the industry is very large and has so many players that no one has a 4 or 5 percent share of the industry. According to Dell’s estimates, the computing industry will grow to be $6 trillion in the mediam term.

One of the big trends he noted right now is clients developing their own private clouds. He also said the increasing number of tech companies in business now will need servers and storage and infrastructure capabilities. These are the enterprise customers Dell said they will begin focusing on.

No mobile phones for Dell

He also noted that while the company will continue to sell mobile phones made by other companies, they will not be moving into the industry themselves. However, he also said that Dell will be competing in the tablet industry and other devices.

According to Dell, the company’s main business is enabling customers to keep their data secure and allow them to access it whenever they need to, from wherever they need to.

Updated on

No posts to display