Do you think going private will help Dell’s storage business?

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Even after Dell's announcement that the company will go private this week, several experts are still not sure what effect it will have on its storage business. While Dell has spent billions of dollars on storage acquisitions, it still remains in a state of transition. Do you think going private will help Dell's storage business?
ASKED: February 8, 2013  3:47 PM

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The only benefit about Dell going private is that they can now makes
decisions without the concern of board members or investors. Now,
whether this helps them in their changing targets, that is still a wait and see aspect.  They are already going up against a couple of strong competitors, NetApp and RackSpace, but only time will tell and the investors need not worry about losing any money if it fails.  So, taking the company private does good for the investors, kudos for Dell in making that decision, investors will not not be losing any money, but then again, if the wrong decision is made, we could be looking at the end of a major corporation.Can you think of other technology companies that have gone this route and are no longer here today?  Tandy comes to mind…

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  • Kevin Beaver
    With the strangling government regulations businesses are up against today, I suspect we'll see other IT and security companies go private over the next few years. Going private could permit Dell to use their capital and human resources more wisely and efficiently which could bolster their storage efforts.
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  • Harisheldon
    Kevin, you bring up an outstanding point, one which I had not even considered.  I work for the government and with the cutbacks and having to do more with less personnel, it is taking its toll on everyone.  The one problem that I do see with your point is if the government currently has a SLA with a company and they do something like this and the government does not like it, what would be the ramifications of it?  We know how this administration loves to dictate things with their "czar's" but if other companies follow suite, I guess not much can be done, especially if the end result id for the better.  So, as I said before, excellent point.
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  • Kevin Beaver
    Thanks Harisheldon. I guess government agencies might take the Wal-Mart route and try to strong-arm companies into following through. In the end, if the company cannot commit, it cannot commit. Contracts/SLAs are met and then no one but the lawyers win. Perhaps our "leaders" in D.C. could create yet another pointless position and have someone monitor all of this. :)
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  • Harisheldon
    Kevin, You used a word that is non-existent in Washington D.C., leadership... At the moment, it is dead in D.C. and needs a serious jolt to bring it back.  Leadership left D,C, when Reagan left the top seat.  Now THAT was a leader!!!
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  • TomLiotta
    In the USA, government servants in Washington, DC, are not intended to be, nor should be considered to be, "leaders". The fundamental problem in that respect is with the 'people' who think of them as "leaders". In this country, "We the People" are and should be the "leaders". As long as that fails to be understood, it ain't gonna work. -- Tom
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