New Dell theme song:
Dell still hasn’t decided what to do with itself, or VMware. A new form 8-K filed with the United States Securities and Exchange Commission on May 17th says Dell “continues to evaluate potential business opportunities, including a potential public offering of shares of DHI Common Stock of Dell, a potential business combination …
“potential business opportunities”
“potential public offering of shares“
“potential business combination between Dell and VMware”
“potential conversion of shares of Class V Common Stock”
“potential business opportunity to pursue”
“potential business opportunity will be pursued”
“potential business opportunities currently being evaluated by Dell do not include the sale to a third party of Dell or VMware.”
So full of potential. Well, full of something, anyways.
They want to be a Technology company, but in order to do that, they need to employ and retain technologists. The currently have a problem with that - they're competing against publicly traded companies that can offer employees long term incentives in the form of stock. Dell can't do that, so any LTI has to come from cash - which they need to pay off that mountain of debt they took on. Their salaries tend to be middle-of -the-road for the software biz, with crappy performance bonus, and then there's the LTI - usually not much (<8% of salary) and fully vested in 2 year, with no followup.
They gotta do something. But they don't know what.
They seem to be employing a lot of 'journeymen' (and women) type salespeople at the moment. It smacks of a short term fix due to their poor performance in the past few quarters. It's like Harry Redknapp or Sam Allardyce trying to avoid relegation and picking up the Crouch's and Defoe's of this world. Big 6 months ahead for Dell!
The Register 
Biting the hand that feeds IT
Copyright. All rights reserved © 1998–2024
