The New Dell is More Entrepreneurial and Innovative

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By LAURA LOREK
Founder of Silicon Hills News

At Dell World, Michael Dell unveiled his new, private innovative and entrepreneurial technology company.
The Round Rock-based company, which employs about 14,000 people in Central Texas, no longer has to adhere to the demands of the public stock market.
As a result, Dell said the company can invest in new startups and take a long term view on innovation.
Earlier this year, Dell took the company private in a $25 billion buyout deal which left him with a 75 percent ownership stake. Silver Lake Partners controls the rest.
And the “world’s largest startup” kicked off its new outlook by announcing a $300 million Dell Ventures fund, which will invest in early to growth stage companies. Already, Dell has invested in 14 companies. It expects to invest $60 million within the next three to five years.
Dell also announced new partnerships with Dropbox, Google, Microsoft Azure, Accenture and Red Hat OpenStack to develop new products for the Cloud.
Dell is not abandoning its hardware business, Dell said, during a press conference following his keynote talk at Dell World. This is the third year Dell has hosted Dell World, but its first time as a private company. About 6,000 people are attending the three day conference, which ends Friday at the Austin Convention Center.
During his morning keynote address, Dell outlined the company’s strategy as a private company. It’s a lot like the strategy he has outlined since 2008 when the company began acquiring software and other businesses to complement its technology and expand its services and solutions business.
“We’re disrupting and democratizing software, services and solutions, the way we did PCs and servers.” Dell said. “And we’ve seen the power of technology to enfranchise and empower people. And today the forces of cloud, mobility, social, big data, security are creating a new model for technology, in fact, a new model for society.”
“They’re the foundation of the modern infrastructure, the highways, the bridges, the telephone lines, the airports of the 21st Century,” Dell said. “Connecting and networking our world. And now we’re going to do what Dell does best. We’re going to innovate and make the technology behind these forces more accessible, more affordable, easier to own, easier to capture value from and easier to operate.”
Dell will focus on helping entrepreneurial ventures launch and expand, along with small businesses, and it also will focus on improving and supporting large enterprises. The company also plans to collaborate more and focus on the global economy.
Dell has been pursuing this vision with a consistent strategy for the last five years. It has invested $13 billion to diversify its business and to offer more software, services and cloud solutions to its customers. Dell has doubled its solutions business from $10 billion to $20 billion.
As a private company, Dell can accelerate its strategy and take a longer-term view of innovation.
Dell announced two new programs focused on innovation at Dell World.
The first program is an internal or organic innovation program through the Dell research division focused on disruptive technology, Dell said. It has a long-range focus of five to ten years out, Dell said. It will also collaborate with leading research institutions to harvest the latest technology.
The second announcement is the $300 million Dell Venture Fund focused on early to growth stage companies in core technology areas. Dell plans to make investments in its four core business groups: end user computing, enterprise solutions, software and services.
“At Dell our commitment to innovation has never been greater,” Dell said.
Despite all the changes, Dell is also still committed to its hardware business of PCs, tablets and servers.
The server is becoming the center of the data center and Dell plans to be number one in market share worldwide, Dell said.
“We’re in it to win it,” he said.
Beyond that, Dell has dramatically expanded its capabilities in storage, networking and security.
“The real innovation comes when you combine these together,” Dell said.
At the heart of Dell’s new initiatives is the cloud.
“The cloud is the new model for tech,” Dell said. “At Dell, we’re making sure you’re positioned to be in a Cloud-based world.”
Dell also announced a new partnership with Red Hat to co-engineer products for Openstack, the free cloud-based architecture.

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