Tomahawk, WI 9/17/2013 (BasicsMedia) –  There aren’t many companies which have influenced the direction the global information technology industry has taken in the same way as Dell Inc. (NASDAQ:DELL). The products and services which Dell offers are delivered to its customers directly, or in certain cases, through its many distributors. It has remained a holding company which has always operated its businesses in every corner of the globe through a network of subsidiaries. The company had been forced to examine how it conducts its business due to poor PC sales. Is it on the right path?

 Dell Intends to Take HP and IBM On

Michael Dell recently purchased the company back and with this move, ensured that it will henceforth operate as a privately-traded company. No sooner had he done this than he declared that the company would embark on a mission of fighting other behemoths such as HP and IBM. Some analysts have declared that this is nothing other than a desperate move and quite insane which won’t achieve much in the long run. However, I beg to differ since I believe that if DELL fights this battle strategically, it might just be what it needs in order to remain alive.

 Michael Dell bought the company back with the help of his partner in this venture, Silver lake Partners to the tune of $25 billion. Once this was done, the company announced through its CFO that it would embark on investing more in areas such as cloud computing which is the new battle ground for companies such as DELL. However, it will do this while continuing to make top notch PCs like it has always done, and invest more money on producing tablets. This is vital since more customers are choosing to buy tablets and not PCs in this day and age.

 Dell Doesn’t Have Responsibilities to Shareholders

 The fight which DELL wants to engage in with its competitors such as IBM and HP is a welcome one. If this fight will help DELL in the long run, why should we not welcome it? IBM recently sold its desktop operations to Lenovo on China.  While the new areas which DELL wants to move into are riddled with numerous pitfalls, this does not negate the fact that it bodes well both for the company and industry as a whole. If DELL had remained as it was in the past, I don’t think it could have embarked on such a path. It had to go private to try out such a move.

 As a private company, DELL can now focus on building its presence in the new areas and businesses which it has embarked on. This would have been impossible to carry out as a public company primarily due to the responsibility it owed the shareholders. As a private company, there is no limit as to how much risk DELL can afford to carry going forward. This is quite different from what it would have been allowed to carry as a public company. I firmly believe that the company is on the right path to recovery as a top performer in this sector.

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