Page 2 of 2
The move gives Dell the flexibility to make the changes it needs to turn a bigger profit without having to worry as much about its bottom line, said Jack Narcotta, an analyst at Technology Business Research, Inc.
"Dell wants to get away from that spotlight so they can reorganize the company. They're in a period of transition. They're trying to get away from the vertical product approach, and they're trying to become a more horizontal play where they're intertwining services and software into the products they make. HP is doing a similar thing but more in the spotlight," Narcotta said.
Narcotta said that business overall was healthy for Dell, but a declining revenue base made it difficult to keep up with Wall Street expectations for a high bottom line. He said he didn't expect much change from the company from an operating standpoint, with the only change being that it doesn't have to report every 90 days.
"The company can really put a focus on its viability without having to maintain near-term targets," said Kreher. He said the move will allow Dell to put up a better fight against its competitors, such as HP and IBM, because it can focus more on developing its business model instead of the bottom line.
Roger Kay, president of Endpoint Technologies Associates, said that the next couple of years will definitely be a challenge for Dell as it works to reinvent itself. He said that Dell isn't guaranteed to succeed now that it is private, but he said it was the best option the company had.
"Listen, they finally got to this moment. Let them take one breath and let them get to work," Kay said.