Solution providers Tuesday hailed the completion of Dell Chairman and CEO Michael Dell's $24.9 billion buyout of the company he founded as a direct sales PC builder 27 years ago in his dorm room as a channel game changer.
Dell partners see the Dell and private equity player Silver Lake Partners' completion of the deal as opening the door to faster sales growth for the company and for the channel.
Partners, in fact, said they see Michael Dell moving quickly to drive a bigger enterprise computing and channel footprint for the company. They expect the private company, under Dell's leadership, to deliver more innovative products and services at a much more rapid rate than it could have as a publicly held company.
Trading in Dell's common stock on the Nasdaq market will end at the close of the market on Tuesday with Dell shareholders receiving $13.88 per share in cash. Dell has already begun the process to delist its common shares from Nasdaq.
Michael Dell himself, appearing at the recent BoB channel thought leadership conference, told solution provider partners that the $60 billion company could grow its $15 billion channel footprint from about one-third of the company's global commercial sales to as much as 60 percent of sales with no limit set on just how big the channel business could grow in the future.
Bob Venero, the CEO of Future Tech, a Holbrook, N.Y.-based solution provider, No. 266 on the SP500, said he sees a private Dell driving its channel business from just $15 billion to $30 billion over the next three years.
"This is a great day and victory on many fronts," said Venero. "It's a great victory for Michael who can now take Dell from the company that it is today to the company that it can be and will be tomorrow. This is going to mean more channel engagement, more channel growth and a deeper strategic alignment between the company and partners. At the end of the day, it is going to mean growth for Future Tech with Dell. Michael went from zero to $15 billion in the channel in five years. With a more nimble and energized company, that is going to grow exponentially. Dell has already made the steepest climb. Now that the channel engine is running, there is no question that number can go to $30 billion in three years."
Venero and other partners rejoiced that Dell was able to beat back a bitterly contested six-month challenge from corporate raider Carl Icahn, saying if Icahn was successful, the company would have floundered without Michael Dell at the helm.
"Icahn had no interest in supporting the customers, partners or employees of Dell," said Venero. "Anytime the bully in the schoolyard gets his butt kicked is a great day. There is no better leader for Dell than Michael. This is going to allow Dell to be a lot more nimble, to react quicker and to focus strategically rather than tactically ... on stock-holders in 90 day time frames."
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