I’ve just returned from Dell World 2014. Dell has been a private company for about a year now. While I’ve been bullish about Dell for a number of years, it’s now clear that privatization has been a transformative triggering event for Dell.
“Going private has unleashed us. It’s allowed us to be bold. We’ve redefined and focused on our customer’s success,” said Michael Dell. The excitement was palpable.
The mere fact that Dell doesn’t have to report quarter-to-quarter results, file with the SEC for any material changes in the company, etc., has unburdened Michael Dell and the Dell leadership team.
While many are declaring the PC market “dead,” it’s probably because that market grew only 0.2% if you exclude Dell’s growth. Dell’s growth was over 19%. It takes a solid product line-up to achieve this. This is just one marker. Dell did not discuss details about growth in Dell Software, Dell Services, Dell Security, Dell Enterprise. Based on generalities, growth in these areas is quite impressive.
I reunited with a few executives who sold their companies to Dell. They couldn’t be happier. How often do you hear that several years later?
I’ve long said that public companies tend to be myopic and operate with a short-term focus.
- Amazon’s investors are beginning to beat up Jeff Bezos for not doing enough to “maximize shareholder value.” They are growing weary of waiting while the stock is getting hammered.
- Carl Icahn looks at companies for the cash he can extract and return to investors while burdening the company with debt. Michael Dell said “no thank you” to Carl.
Michael Dell accelerated growth through change by privatizing Dell. Michael Dell’s singular focus is satisfying customers by offering end-to-end solutions that excite and delight them. He doesn’t have to be distracted by Wall Street. And he gets to focus on running “the world’s biggest start-up.”
I wonder how many other CEOs in the Fortune 500 are paying close attention and view Dell’s privatization with great envy?
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Thought for the week:
Read Rob Enderle’s entire post here.