Monday, April 1, 2013

An interesting view on why Dell Computer wants to go private.

   "There’s a good reason Dell (DELL) wants to go private and back out of the traditional PC business: Because it thinks selling computers based on Microsoft’s (MSFT) Windows operating system is quickly becoming a dead end. Forbes points us to a recent proxy statement filed with the Securities and Exchange Commission where Dell outlines the risks of remaining a private PC manufacturer and paints a very grim picture for the PC industry overall.

One big reason that Dell wants to go private is that it reportedly plans to reinvent itself by developing a computer the size of a USB stick that’s capable of giving users access to every major operating system, from Windows to Mac OS X to Google’s (GOOG) Chrome OS. Given its own dim view of the PC industry, and of the market for Windows-based PCs in particular, it isn’t surprising that Dell seems willing to take such a big risk in overturning its traditional business model."

It takes mighty huevos to completely turn over your business model this way, but I guess in the computer industry, that is what it takes to survive for very long.  Good luck to Dell.

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