Dell is still at its core a PC maker, with 50 percent of its revenues coming from building computers (which drives 50 percent of all of its enterprise sales). It is now the third largest PC maker behind Lenovo and HP, according to Gartner's latest figures of the shrinking PC market. According to Dell's most recent quarterly earnings report its PC business' operating income dropped 71 percent.
Despite losses, it's unlikely Dell will be getting out of the PC business anytime soon, say experts. Michael Dell has said 50 percent of all its enterprise business came through sales of PCs.
Dell has also struggled to bring together the various business units from 20 acquisitions made since 2009 into one unified solution. Some partners say it has taken on too much too quickly and needs to regain its focus on helping channel partners go to market with Dell solutions.
Wally Lang, general manager of Hipskind Technology Solutions Group, echoed the sentiments of other Dell channel partners interviewed. "Dell can't be everything to everybody. Hopefully, going private will tighten their focus and that will help all of us. I think they need a more defined go-to-market strategy especially with their enterprise products."
The Dell buyout will saddle the company with a mountain of debt, including $15 million of new debt from MSD capital and the $2 billion loan from Microsoft. That, according to experts, will impede Dell’s ability to grow via investing in new businesses and technologies. Credit rating agency Standard and Poor’s downgraded Dell’s credit rating four levels on Wednesday to BB- from BBB.
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