Dell Says Success of Buyout to Be Judged Over 10-20 YearsAaron Ricadela
Dell Inc. Chief Executive Officer Michael Dell said his company’s success as it exits the public markets will be judged on where it stands in 10 to 20 years.
“This is going to take a long-term vision and strategy coupled with even more aggressive long-term investing,” Dell said today in a keynote address at Oracle Corp.’s OpenWorld Conference in San Francisco.
Dell and his partner, Silver Lake Management LLC, are taking the company he founded private in a $24.9 billion leveraged buyout after prevailing in a Sept. 12 shareholder vote on the deal. After years of ceding business to Apple Inc. and Samsung Electronics Co. in mobile computing, Dell is going private to reduce its reliance on personal computers and expand in hardware and software for corporate data centers.
The Round Rock, Texas-based company plans to expand through acquisitions while investing in higher-speed data centers, mobile devices and data analysis, the CEO said. Dell said the company will introduce a consumer tablet in a few weeks.
Dell’s presence at Oracle’s conference was also used to announce an expanded partnership with the software maker around data management, he said. Dell called out International Business Machines Corp. in his speech as one competitor his company is going after, with a focus on moving businesses away from IBM’s mainframes to Dell’s mass-market servers.
“We’re the folks to call to help you get off of that,” he said. “We’re unencumbered by an old legacy.”
Dell and Oracle said today that they will provide technology to manage Dell servers when running Oracle software. The announcement follows an agreement in June to test Oracle’s version of the Linux open-source operating system and virtualization software on Dell servers. The partnership is designed to reduce challenges information-technology departments have when installing hardware and software from different companies.
Oracle, the world’s largest supplier of database software, holds its OpenWorld conference through Sept. 26, when it will host a meeting with analysts to discuss the company’s financial performance.