Dell Goes Private: What’s In It For Microsoft?
Dell announced today that it will be taken private in a deal that will include a $2 billion loan from Microsoft. Could this be a game-changing partnership for both players? In a new blog post, Senior Analyst David K. Johnson argues that the deal could help Microsoft in some key areas:
- “Microsoft needs more supply chain expertise and capacity for PC hardware and needs more dedicated focus from an OEM like Dell to execute on a strategy of better integration between the operating system and hardware — both on the desktop and in the data center.
- Microsoft also needs an enterprise channel for hardware sales and support for in-house hardware — the Microsoft Store concept will not build buyer momentum fast enough, and this is not a trivial exercise.
- Thirdly, converged infrastructures for cloud could get a boost through tighter integration between the hardware and OS, thanks to performance optimizations, better resource automation, and fault management throughout the stack.
- Finally, hardware + core systems + management + packaged apps + services will belong to large companies with a lot of leverage in all the categories: IBM, HP, and Oracle are getting there. To be competitive, Dell has to be there too, and so does Microsoft.”
To read the full analysis, visit the Forrester blog here.