Dell To Make More Acquisitions

    October 29, 2007

The CEO of Dell recently discussed his company’s future, and things are not going to be business as usual; “acquisition” and “innovation” were two of the talk’s main themes.

“I think the pace of consolidation will increase,” stated Michael Dell.  “I think that it favours the larger companies, particularly as the growth is skewed towards emerging countries.

Dell To Make More Acquisitions

So that means money will be spent more quickly and in larger amounts.  Shareholders may or may not be in love with the idea, but potential acquisition targets are almost surely dancing with delight right now.

And however investors view that last plan, they’re likely to appreciate this other one.  Dell “estimated that 70 percent of IT spending at Japanese companies over the next year will be related to maintenance of old systems and management and only 30 percent on new hardware,” according to Martyn Williams, and then said, “We need to flip that 70/30.”

This plan of attack sounds almost Google-ish in nature, and that’s hardly a bad thing.  One might even wonder if the two companies haven’t been doing a little chatting; they’re both involved in the Climate Savers Computing Initiative, and Dell manufactures the Google Search Appliance.