Digital Edition

SYS-CON.TV
Dell Dumps Rollins
Michael Dell has come back to clean up the mess left by CEO Kevin Rollins

Michael Dell has come back to clean up the mess left by CEO Kevin Rollins, whose immediate resignation was accepted late Wednesday after the market closed.

Rollins is gone from the Dell board as well as its executive suite.

His departure has been widely expected, despite Michael's insistent public backing of his lieutenant. Dell offered no reason why Rollins is gone now. It may be that he was given a performance deadline and failed because along with the notice of his resignation, Dell said that it expects its fiscal Q4 results to be below First Call estimates of both earnings and revenues.

Wall Street was expecting 32 cents a share on revenues of $15.3 billion. Dell's financial results are due March 1.

Michael has taken over as CEO - permanently, he says - and retains his position as chairman.

Dell's board issued a statement saying that it "believes that Michael's vision and leadership are critical to building Dell's leadership in the technology industry for the long term. There is no better person in the world to run Dell at this time than the man who created the Direct Model and who has built this company over the last 23 years."

It remains to be seen whether that optimism is well placed. Building a company is a lot different than clawing back with a new vision and Michael hasn't really run the company on his own since Rollins got there in 1996 and they created the Office of the CEO. Highly placed ex-Dell guys doubt Michael's the boy.

Under Rollins, CEO for only two-and-a-half years, Dell tanked. Growth evaporated. Service went to hell. Dell lost its pricing advantage and its lack of retail channels has proved disastrous. The company had to recall four million laptop batteries. HP, itself a comeback story, started eating Dell's market share. Dell missed several quarters and it's had a completely opaque internal investigation into its books going on seemingly forever, the SEC and the Justice Department have been crawling all over it, its long-time CFO resigned in December, and it hasn't filed a financial report with the SEC since last spring.

Dell's battered stock, down 31% the last few years, perked up briefly on the news but closed down 42 cents Thursday at $23.80.

About the vision thing… Credit Suisse remarks that "innovative products and solutions are once again resonating with customers, a dynamic which favors companies with IP." It suggests that Dell buy itself some, offering blade servers and storage as possible areas as well as "tweaking its delivery model to include indirect distribution in certain geographies and product segments."

On his reappointment, Michael said he would build up the company's higher-margin consulting services. Dell recently hired Stephen Schuckenbrock, an EDS veteran, to run that unit. Otherwise Michael seems determined to stick with his direct model and improve its supply chain and manufacturing.

About Security News Desk
SYS-CON's Security News desk trawls the world of security for news of software, hardware, products, and services that seems likely to be of interest to infosec professionals and summarizes them for easy assimilation by busy IT managers and staff.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1



ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an over...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily ...
The need for greater agility and scalability necessitated the digital transformation in the form of ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection...
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - w...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Ser...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know ...
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they respon...
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every ...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting ch...
While some developers care passionately about how data centers and clouds are architected, for most,...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy hig...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis too...
"Cloud4U builds software services that help people build DevOps platforms for cloud-based software a...
The question before companies today is not whether to become intelligent, it’s a question of how and...
Kubernetes is an open source system for automating deployment, scaling, and management of containeri...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't com...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for ma...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't com...