Key Stats
Dell Inc. is a multinational technology corporation providing a comprehensive range of computer products and enterprise solutions. The company supplies desktop and notebook PCs, network servers, data storage systems, printers, Ethernet switches, and peripherals to consumer, education, enterprise, and government sectors worldwide.
Founded in 1984 by Michael Dell from his University of Texas dorm room, the company pioneered a direct-sales model for custom-configured computers. Starting as PC’s Limited with approximately $300,000 in family capital, Dell built IBM PC-compatible computers from stock components and sold them directly to consumers.
Dell revolutionized the computer industry through its build-to-order business model, eliminating retail markup and inventory costs. The company became the world’s third-largest PC manufacturer and expanded into enterprise technology solutions, culminating in the 2016 merger with EMC to form Dell Technologies.
Dell Founder
Founded PC’s Limited in 1984 from his University of Texas at Austin dorm room while still a student. Dell dropped out of school to focus full-time on the business after securing about $300,000 in expansion capital from his family, building the company into a technology industry leader.
Dell History
Michael Dell created PC’s Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components, establishing the direct-sales model that would define the company.
The company produced its first computer of original design, the Turbo PC, which sold for $795. PC’s Limited advertised systems in national computer magazines for direct sale and custom assembly, grossing more than $73 million in its first year.
Michael Dell brought in Lee Walker, a 51-year-old venture capitalist, as president and chief operating officer. Walker served as Michael’s mentor and was instrumental in recruiting board members for the eventual public offering.
The company changed its name to Dell Computer Corporation and went public in June with an initial public offering of 3.5 million shares at $8.50 per share. Market capitalization grew by $30 million to $80 million, and the company began expanding globally.
Lee Walker retired due to health issues. Michael Dell hired Morton Meyerson, former CEO and president of Electronic Data Systems, to transform Dell from a fast-growing medium-sized firm into a billion-dollar enterprise.
Fortune magazine included Dell Computer Corporation in its list of the world’s 500 largest companies, making Michael Dell the youngest CEO of a Fortune 500 company ever at that time.
Dell planned to sell PCs at big-box retail outlets like Wal-Mart to generate additional $125 million in annual revenue. However, Bain consultant Kevin Rollins persuaded Michael Dell to abandon retail deals due to thin margins.
Dell left the reseller channel completely, returning to its core direct-sales model. Kevin Rollins, who advised against retail expansion, joined Dell full-time and would eventually become company President and CEO.
Dell’s 25-year history as a public company ended in September when shareholders voted in favor of Michael Dell and Silver Lake Partners’ $25 billion bid to take the company private.
On October 12th, Dell Inc. announced its intent to acquire EMC in what would become a significant vertical merger combining Dell’s enterprise server, personal computer, and mobile businesses with EMC’s enterprise storage capabilities.
Dell Inc. completed the merger with EMC Corp on September 7th, which later became Dell EMC. The company was reorganized with a new parent company, Dell Technologies, with business divisions including Dell Client Solutions Group, Dell EMC, and VMware.
Dell Acquisitions
Dell has pursued strategic acquisitions throughout its history to expand capabilities beyond its core PC business into enterprise solutions and infrastructure. The company’s acquisition strategy evolved from component suppliers to major technology corporations, culminating in one of the largest technology mergers in history.
During the early years, Dell focused on organic growth through its innovative direct-sales model rather than acquisitions. The company built its reputation by custom-assembling computers from stock components and selling directly to consumers, avoiding the need to acquire other PC manufacturers.
As Dell matured, the company began making selective acquisitions to enter adjacent markets. These transactions added capabilities in areas like data storage, networking equipment, and enterprise software, helping Dell transition from a PC manufacturer to an integrated technology solutions provider.
The relationship with consultant Kevin Rollins, who joined from Bain, proved transformative. Rollins convinced Michael Dell to abandon planned retail partnerships in 1993 and joined Dell full-time in 1994, eventually becoming President and CEO. His influence shaped Dell’s strategic direction away from traditional retail.
The 2013 privatization represented a different type of transaction, with Michael Dell and Silver Lake Partners acquiring Dell Inc. for $25 billion. This leveraged buyout removed the company from public markets, allowing management to pursue long-term transformation without quarterly earnings pressure.
Dell’s acquisition of EMC Corp, announced on October 12, 2015 and completed September 7, 2016, represented the largest technology merger at that time. The transaction combined Dell’s strength in PCs and servers with EMC’s leadership in data storage, creating a comprehensive enterprise technology provider.
Following the EMC merger, Dell reorganized under a new parent company, Dell Technologies. The structure included Dell Client Solutions Group for consumer and workstation businesses, Dell EMC for enterprise infrastructure, and VMware for virtualization software, creating an integrated technology powerhouse.
These strategic moves transformed Dell from a dorm-room startup selling custom PCs into a diversified technology corporation serving enterprise, government, education, and consumer markets with comprehensive hardware, software, and services solutions across the IT infrastructure stack.
Dell Revenue
Dell generates substantial revenue through its diversified technology product portfolio including PCs, servers, storage systems, and enterprise solutions. The company’s financial performance reflects its position as the world’s third-largest PC supplier and major enterprise technology provider.
Dell Market Cap
Dell was taken private in 2013 for $25 billion and later reorganized under Dell Technologies following the EMC merger. As a private company, market capitalization fluctuated with ownership structure changes and the eventual partial return to public markets.
Dell Competitors
Dell competes in the global computer hardware and enterprise technology markets against manufacturers offering PCs, servers, storage systems, and IT solutions. The competitive landscape includes both traditional computer makers and newer technology companies across multiple product categories.
| Competitor | Country |
|---|---|
| HP Inc. | United States |
| Lenovo Group | China |
| Apple Inc. | United States |
| Acer Inc. | Taiwan |
| ASUS | Taiwan |
| IBM | United States |
| Cisco Systems | United States |
| Microsoft | United States |
| Oracle Corporation | United States |
| NetApp | United States |
FAQs
When was Dell founded?
Dell was founded in 1984 by Michael Dell from his University of Texas dorm room under the name PC’s Limited. The company was renamed Dell Computer Corporation in 1988.
How did Dell start?
Michael Dell started the company while a university student, building IBM PC-compatible computers from stock components. He dropped out of school after securing about $300,000 from family to focus full-time on the business.
Is Dell still a public company?
Dell went private in 2013 for $25 billion with Michael Dell and Silver Lake Partners. After the 2016 EMC merger forming Dell Technologies, the company partially returned to public markets.
What is Dell’s direct-sales model?
Dell pioneered selling custom-configured computers directly to consumers, bypassing retail stores. This build-to-order approach eliminated retail markup and inventory costs, allowing competitive pricing and customization.
When did Dell acquire EMC?
Dell announced its intent to acquire EMC on October 12, 2015, and completed the merger on September 7, 2016. The transaction created Dell Technologies, combining Dell’s and EMC’s enterprise technology businesses.