Michael Dell hints at more, bigger acquisitions

Company shopping for more takeover targets?

Dell CEO Michael Dell hinted that his company could be shopping for more acquisition targets, and that they could be larger than the companies it has acquired to date.

Speaking in Tokyo, Dell made the comments after giving his views on a recent run of acquisitions in the PC market, such as the purchase of Gateway by Taiwan's Acer.

"I think the pace of consolidation will increase," he said. "It think that it favors the larger companies, particularly as the growth is skewed towards emerging countries. In the last two years Dell has acquired five companies, two related to the consumer business, one related to software and two related to services. These have all been relatively small companies but I would not be surprised if the nature and pace of acquisitions increases somewhat."

He added that his company had looked at Gateway when it was available but decided against purchasing the company.

Dell was in Tokyo to launch the company's "simplify IT" program. It aims to cut corporate IT management costs, thus freeing up spending for use on new computers and servers. He estimated that 70 percent of IT spending at Japanese companies over the next year will be related to maintenance of old systems and management and only 30 percent on new hardware.

"We need to flip that 70/30," he said.

On the consumer side of Dell's business the company has recently begun offering PCs through retailers -- a break with its successful direct sales model. With a handful of retailers already selling its systems, Dell said more are on the way.

"The first steps that we have taken with the partners mentioned earlier are really just that, first steps," he said. "So I think you can expect over the next several quarters or year or two, that in all major countries around the world like Japan, Korea, China, India, U.S., France, U.K., Russia, etc., you would see Dell having a small number of key partnerships which allow consumers to purchase Dell products at retail. It's really about making our products available in more places."

"I believe we can grow the direct business both on telephone and online and I believe we can grow a channel, a partner business. And we are also working very hard to extend the capabilities that Dell has to our channel partners," he said.

Looking ahead, Dell promised new x86-architecture based products during his speech at Oracle Open World on November 14. The products, which he didn't detail, will have "breakthrough performance and power capability relative to others in the industry.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Skywatcher Dobsonian 8″ Collapsible Telescope

Learn more >

Family Friendly

Whodunnit™ Duo-Scope MFL-007 Microscope Kit

Learn more >

Stocking Stuffer

Logitech Ultimate Ears Wonderboom 2 Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?