Update: It's official. Microsoft has a hand in taking Dell private to the tune of 2 billion. Is this a loan like the 'investment' was in Apple?
Dell is considering taking itself private. This is nothing odd, most successful companies with a large cash pile will consider buying back their public shares, taking them private. They would then do business as usual for a time before taking themselves public again, this time at a higher value. If you are interested why, there are some possible reasons why explained at the end.
So while Dell considering taking themselves private is not really interesting to technology watchers, the rumor that Microsoft and Silverlake Partners is reported to be involved in the buy back of those shares and coming in as investors is interesting. So why now? And why Dell? Microsoft has not been successful with hardware (other than their mouse and keyboards). Xbox is a success but it's success comes from games software and subscription services rather than just hardware alone. Case in point, the Microsoft Tablets and the Zune. So the question is what would Microsoft gain from having a say in the running of a PC manufacturer.
This could be another front Microsoft is pursuing against Linux. Dell made it no secret that they were investigating the viability of having Linux as a desktop OS option. The well reviewed Dell XPS 13 Developer Edition or Project Sputnik and regional versions of laptops pre-loaded with Linux are examples of their efforts. The adoption of Linux as a Desktop OS option by a major PC manufacturer would spell big trouble for Microsoft. While Dell has offered several Linux OSes such as RedHat and Ubuntu as options for a server OS, this has not been a real threat to Microsoft. This is because of the use of Linux on servers has a low consumer profile and the fact that Microsoft makes more money on the connection licences on the server than the sale of the server OS itself.
Another interesting twist to this story is the involvement of Silverlake Partners. While many know of their collaboration with Microsoft on the Skype deal, the people behind both companies share a more darker past in relation to Linux. Both are entangled in some way with SCO as it was launching it's legal battle against Linux.
Is there something more to this?
Dell is considering taking itself private. This is nothing odd, most successful companies with a large cash pile will consider buying back their public shares, taking them private. They would then do business as usual for a time before taking themselves public again, this time at a higher value. If you are interested why, there are some possible reasons why explained at the end.
So while Dell considering taking themselves private is not really interesting to technology watchers, the rumor that Microsoft and Silverlake Partners is reported to be involved in the buy back of those shares and coming in as investors is interesting. So why now? And why Dell? Microsoft has not been successful with hardware (other than their mouse and keyboards). Xbox is a success but it's success comes from games software and subscription services rather than just hardware alone. Case in point, the Microsoft Tablets and the Zune. So the question is what would Microsoft gain from having a say in the running of a PC manufacturer.
This could be another front Microsoft is pursuing against Linux. Dell made it no secret that they were investigating the viability of having Linux as a desktop OS option. The well reviewed Dell XPS 13 Developer Edition or Project Sputnik and regional versions of laptops pre-loaded with Linux are examples of their efforts. The adoption of Linux as a Desktop OS option by a major PC manufacturer would spell big trouble for Microsoft. While Dell has offered several Linux OSes such as RedHat and Ubuntu as options for a server OS, this has not been a real threat to Microsoft. This is because of the use of Linux on servers has a low consumer profile and the fact that Microsoft makes more money on the connection licences on the server than the sale of the server OS itself.
Another interesting twist to this story is the involvement of Silverlake Partners. While many know of their collaboration with Microsoft on the Skype deal, the people behind both companies share a more darker past in relation to Linux. Both are entangled in some way with SCO as it was launching it's legal battle against Linux.
Is there something more to this?