Dell Goes Private w/Assistance From Microsoft, What Does The Future Hold For Alienware?

Just read this article:

Insight Broadband :: TECHNOLOGY :: Dell in talks to go private, shares surge

 

most likely, they will sell the alienware unit or will shut it down.

dell is trying to be enterprise service company (sorta like IBM after they sold PC to Lenovo) and alienware

doesn't fit into this new model.

frankly, dell has been floating for years without direction nor vision - their approach has been to imitate what others make and see what sticks.

not surprisingly, ALL of their efforts outside PC business have failed miserably. going private won't change this fundamental problem.

 

I don't like it. This could be bad. Hope they don't sell to some Chinese businessman. Bring the jobs back to the USA... If Alienware systems said "Made in America", that'd be great.

 

Really hope alienware doesn't go down in flames. I'd rather not be looking at a sager/clevo for my next system. Just not my style.

 

Agreed. I love my AW although I could now transition back to a desktop after 3-4 years. It'd be a damn shame if AW drops out from it.

PS: Dell, thanks for all the business lunches for IBM folks like me in the enterprise market

 

Going private could be the best thing ever. I don't see the announcement as being bad or something to get worked up about. Going private means that a company can focus more on meeting the needs of customers, providing a better way of life for Dell employees, improving quality control and worry none about shareholders getting a return on their investment.

Michael Dell is what made Dell successful. Bill Gates is what made Microsoft successful. Steve Jobs is what made Apple successful. Having a man with a plan, vision, mission, personal fortune and personal reputation at stake is much better for customers than a board of directors.

@bitonyman - I hear ya, brother. The thought of having to go that route for a gaming laptop if something were to happen to the "Big A" would be very displeasing. I hate downgrades, and that would be a pretty huge one.

 

I agree with Mr. Fox that it could be the best thing to happen or it could not be, but until we have more details, I'll remain optimistic.

 

Could be good, could be bad.

Regardless, Dell definitely needs a change. As stated. They were slow to enter the tablet and smartphone market, and did not aggressively market their products when they did, which is now biting them in the butt, as consumers are now picking up such items in ever increasing numbers.
Dell also has run into problems because they have tried to stay competitive with companies like lenovo by lowering prices to the point where they have also had to cut quality in many areas. Customers see this, and are not buying as many dell products as they used to. Dell's PC market share is steadily decreasing at an alarming rate.

What they need to do is reinvent themselves as a smaller, cleaner, more high end company that has an even better quality Alienware line, a high end profesional laptop line that can rival lenovo's thinkpads in quality and price, a mid range desktop and laptop line that appeals to normal consumers with a good design and marketing campaign (not necessarily price), and a line of solid lower end PC's with good quality control at the factory that will appeal to budget users, large companies for offices, and schools.

Right now Dell is trying to throw darts at the wall hoping one will stick and be the next hot item. Thats not going to happen. They need to lay out a solid restructuring plan and several reachable goals for the next decade.

Being a public corporation has several advantages and disadvantages. One advantage is that there is typically more funding for things, as investors are buying into the company, and since their are more people in the leadership positions, there are more ideas. It is a double edged sword though, as investors often demand quick returns, and there can be to many cooks in the kitchen at the top. Leading to stagnation and easy, non innovative money making solutions that don't always pan out.

Meanwhile being private typically means a business is more streamlined and organized, especially with a strong leader at the top. However, it can also lead to some of the same problems the publicly traded option can lead to. Stagnation as the leader grows lazy and content with his/her companies position, and usually private companies stay smaller than publicly traded ones (which can be seen as good or bad, depending on the company in question).

In either case the CEO can also have the problem of surrounding themselves with YES men who never disagree or challenge them, and let their ego outgrow them, no matter what the investors/partners say. Qualcomm's god awful CES keynote this past week was an example of that. Its very clear qualcomms CEO surrounds himself with YES men, or someone would have told him how freaking bad that keynote was going to be during the scripting and rehearsal process.

Whatever happens, I think dell not only needs a new plan, it needs a new leader. Micheal Dell is a great man. He built this company and made it great in the 90's. However when he retired in the early 2000's and things started going down hill, his coming back didn't help. The situation only worsened. In my opinion a new person should be brought in, either a new, hyper aggressive and energetic tech minded businessman, like Tim Cook over at Apple, or a new generation of board members who know technology, economics, and who have fresh ideas.

The world is a very different place than it was in the late 80's and 90's, and it has taken some companies, such as Dell, to long too realize that. They need fresh ideas, fresh meat, and fresh structure.

 

Or, they might do better to get back to their roots and do what they did best... computers, computers and more computers. Trying to be all things and do all things is difficult. Most companies that try that approach don't do very well. Doing only a few things and do them better than your competitors is a good plan. In fact, that is what brought them the success that still makes Dell great today, despite their struggles. When the name Dell is mentioned, the first thing that enters a person's mind is computers. We don't need a new version of the Windows Phone or another Android device, more MP3 players, or a Dell electronics and accessories web store. Leave that to HTC, Samsung, NewEgg and others businesses. The market is already too saturated with competing gadgets. The area we are sorely lacking in phenomenal quality overall is computers. Just about all of Dell's competitors kind of suck at what they do, with crappy service, mediocre build quality, lousy warranty fulfillment process. Dell already excels here, why not take what they are already good at, refine it and go to the next level in an area that other PC makers consistently fail and fall short of hitting the mark of excellence? They might also do better to shrink their geographic footprint and stop trying to be a global provider of technology of all sorts. If they can focus on going over the top with delivery of killer computer products and phenomenal service in the North American continent, they can nail it because they are already the best.

I have seen many examples where fresh ideas, fresh meat and fresh structure sealed the doom of a company because the new head honcho was too focused on things that are distractions from the primary task at hand. This is especially true of hotshot empire-builders that want to go down in history as the next Michael Dell, Bill Gates or Steve Jobs. Dell (and many other companies) need street savvy businessmen that do not care about making a name for theirself as much as rolling up the sleeves, kicking butt, taking names, getting dirty hands and making it run like a Swiss watch the way Mr. Dell did. The bigger the ship, the harder it is to steer, and an inexperienced dreamer might not be the ticket here. Those types are great for startups, because they can learn as they go, correct their own mistakes and find their groove. That is a lot different that steering a ship that already has momentum.

You're right though... it could go either way. It will be amazing to watch what happens. I expect it to turn out good.

 

Back in the early 90's when they made a name for themselves their PC's were cutting edge stuff. I remember one of my IT customers showing off his new Dell high res CRT monitor which back then was 800x600 resolution. Their laptops were stout and offered the latest PC components.

I agree that it could be a good thing for Dell to go private. It would be OK with me if they charged more but offered better quality products and brought back the CTO model which made them famous and every one else later copied.

 

I do agree mr. Fox. They need to get back to "computer, computers, computers", and perhaps a few peripherals such as printers and monitors. It's just that if they had agressively pushed their way into the smartphone and tablet market like they could have when the market was young 3-4 years ago, they would probably have a decent market share today, and a floating buisness, not one that's needing all hands to bail water.
Now that the ship has sailed in that area and its to late for anyone but a mega coprporation like Microsoft to catch up, its better if Dell goes back to doing stuff it knows. Aka desktops and laptops. All in one advancement could be their "niche" department too.

They also need to work on their image and customer service. When you ask the average person what they think when they hear the name Dell, they think dull. Dell needs a serious and well run public relations campaign. Get some tv adds going, some stuff in magazines, and other stuff. The way they have been pushing the AW x51 has been really good. A full page add for it in the last several game informer issues, and sending free ones to various well known YouTube gaming commentators, who have later done positive reviews on them and garnered the x51 several million views worth of exposure for only a few thousand dollars on Dell's part.

Dell cs, especially on business computers is pretty good, but it could be better. Bring back the call centers to America, and put techs through either serious training programs, or a screening process. Get it to the point that a few years down the road when people hear the name Dell, they think amazing cs.

 

Yes, I agree with you. Fix what's already good, make it more awesome, tighten up some loose screws, but don't waste time chasing rainbows and unicorns. I even think it would be smart to abandon the disposal trash laptops and tablets market, focus on killer business-class, high-performance and AIO models. Let HP, Asus, MSI, Acer and all the other little guys have the crap PC market. Those customers are fickle and shop based on price, not value. A reputation for quality will carry a business where the benefits of being a loss/low-cost leader are fleeting. One of the things that turned me to Dell initially was their business-class machines I used at work. It made me come to appreciate quality computers instead of low prices. It made me hate inexpensive laptops with a passion. You can instantly feel the difference by simply handling them.

The call centers are a big deal, too. A North American customer calling someone in India is a recipe for dissatisfaction and a lower customer retention rate. Keep all of the support based in Canada, US and Costa Rica, period. That's going to be more of a challenge with some of the anti-business things that are starting in 2013. The savings to be realized by foreign outsourcing will be astronomical, but we can certainly turn to places like Mexico for an affordable workforce instead of India.

 

Trouble is, it's hard to sell the idea of slimming down to your company. Nobody gets promoted who says 'I think we should take a step back, focus on computers, and ditch all the other stuff.' Nah, to be promoted you have to explain your idea to expand into all aspects of life, making the company all things to all people. ("My new idea - Dell brand sliced bread! It'll be thebest thing since... uh... OK, we'll work on that!")

This, at least, is my fear - mostly because I see this in the military all the time. The BEST course of action is to ficus on what you're good at, and get the mission done. The course of action that is normally taken (because it tends to get commanders noticed/promoted) is to try and spread your unit out so thin doing everything for everybody, until your people collapse. (We call it 'mission creep' - the idea that you slowly get expanded to do more and more as part of your 'mission' until you're hopelessly unfocused)

 

I agree with that wholeheartedly i use Dell at work every day and never have any issues with stuff and the rep is literally a call away based in Ireland ,
Yet when i try a consumer rep it gets slightly more annoying

 

There's a big market for what we would call "crap computers." It is probably larger than several of Dell's other products combined. I see people in the stores all of the time buying computers they know nothing about, and only doing so because of some salesman who doesn't know much about the computer either, was able to convince them, "it's a good machine." I don't think it would be wise for them to do so.

However, I do agree they need to focus on improving certain product lines like Alienware and XPS. Quality and durability has gone way down since the early 2000's. We have an 11 year old Dell Desktop PC and it still works, but it is extremely slow (at least compared to what we see today, obviously). I doubt any of their computers would last that long these days.

If you increase durability and quality you also have to take into account how long the PC will last, and how that affects sales. Today we see Honda vehicles from the 90's still on the road and that isn't good for business. Technology isn't designed to last, it's designed to break and become outdated so you continue to spend money. There are exceptions for higher quality goods, things like Alienware systems last much longer than an Inspiron, and it has to do, not only with quality, but with current sales, expected sales, needed sales, and overall revenue.

It is very complex, running a business...

 

It is very complex running a business. There are a lot of mistakes made in the business world based on popular modern ideologies that overlook the obvious. A few danger zones exist that are frequently the cause of errors which can be fatal. One of those is minimizing the importance of reputation. Having vehicles on the road and still running strong after 15 or 20 years and 200k miles or more does far more good than harm for reputation. Many people make buying decisions based on product longevity above all else. They tell others about their experience, so business grows exponentially as a result. There are many businesses that don't make any cheap products in markets dominated by junk, but they remain in business and enjoy ongoing success specifically because of their reputation for delivering only high quality products and services. There are serious dangers in catering to customers that shop based on price because loyalty does not exist, and without brand loyalty repeat sales and exponential growth do not occur with enough frequency to sustain long-term operations. You can also judge a company and their product by their staff. Having a customer-oriented workforce that has seasoned veterans that are truly experts in the business, committed to their brand, their product and their customers, is better than an ambitious group of worker bees with bright ideas changing jobs and switching employers as frequently as their undergarments.

 

That's true, reputation is important, but I still don't believe cutting out the lower end products is wise. Perhaps over a series of years, it may be good. But doing so in a quick manner could hurt them short-term, later affecting the future of the company.

In my opinion, you are right about the staff part. I don't appreciate how companies handle this part either. But this happens everywhere, even in small private companies. It doesn't happen as often because these smaller companies can't afford to do it, but if they could, they would.

Privatizing one of the largest computer manufacturers in the world is not something I would like to see. This brings unnecessary risk to the table. However, it is something that can be good, and also something that can turn out to be very bad.

Hope to read more about it though. I'm curious to see how this turns out. It's definitely a big decision.

 

some good reads:

What Exactly Does Michael Dell Have to Sell? - Forbes

Dell: From PC King to Buyout Fodder - Wall Street Journal

How Dell Became Entangled in Options - New York Times

let's keep in mind the crux of dell going private is to move further away from the pc industry...

More Bad News for Dell, Hewlett-Packard and Sony - NASDAQ

Dell Admits Server Death In Going Private - Seeking Alpha

Is Dell looking to kill PCs with "Project Ophelia"? - Ars Technica

Dell bets on Ophelia - Fudzilla

Dell readies for a post-PC future with Android-powered stick computers - ExtremeTech

 

The fact of the matter is that the PC market is over saturated, and to the average consumer(and even a knowledgeable one) the PC brands blend together.
I really can't think of a reason why dell could be better than Sony, or that Toshiba isn't as good as Samsung etc. In all honesty the Asus ultrabooks and lenovo think pads are the only exception to the rule, but lenovo and Asus both leave a lot to be desired in tech support...

Sent from my SCH-I535 using Tapatalk 2

 

I sure would love to hear something from senior management at Alienware. Throw us a bone on what's up.

Then again, if they knew, they prob wouldn't say anyhow.

They were private once. How much capital would it take for them to go alone again? It's certainly an established brand, that doesn't "need" Dell, IMHO.

 

I have to disagree on that brother painkiller!. Because when Alienware were a private company the basic configuration used to cost $3999, And a max out configuration about $7000.

 

to be fair, thats also back when a lot of parts were obscenely expensive compared to the types used now. Anyone remember when ram was 100 bucks for 2 Megabytes? There are plenty of other companies that dont have dells supply lines, yet use quality parts and have less expensive machines, like Sager.

 

All this talk is making me squeamish about getting something new before Dell kicks AW to the curb... I've been sitting on the fence about a new rig, presuming there will be a refresh of the lineup. Argghh... this business might also explain why there has been no significant refresh of the AW lineup in terms of design for a few years now.

 

It's expensive to refresh whole designs from a testing and validation perspective, MSI keep the same shell as do clevo a lot of the time.

It also means we can more easily get heatsinks and newer cards that will fit so it's not all bad.

 

Dell might be possibly bought out by Microsoft. Just read this a minute ago. If it happens, would Microsoft kill Alienware since the Xbox is their gaming platform of choice?

Insight Broadband :: TECHNOLOGY :: Microsoft in talks to invest up to $3 billion in Dell: CNBC

 

I think it would be a good move for Microsoft. Microsoft not only focuses on gaming, but is a major player in the gaming market. I'm fine with Microsoft taking over because I know they won't let Alienware die.

I'd actually prefer Microsoft own Dell over anyone else.

 

Dell debates going private, Microsoft to pay billions to help make it happen?

What's Really Going on Between Microsoft and Dell

 

• Microsoft to buy Dell for $3 billion? Good for Alienware?
• Alienware's Chances Of Surviving A Dell Leveraged Buyout...
• Dell possibly going private. Good for Alienware?

Not sure why we needed 3 separate threads for the same discussion.

We now have one for the topic.

 

It makes sense that Microsoft wants Dell alive. You may have the best tequila in the world but what's the point if all the bottling companies are going to bankruptcy.

Dell will be bought out, and then sold in pieces. That's a given. As for Microsoft,they wasted the last 10 years doing precisely nothing. They are still seating on enormous pile of cash and the income stream from Office products and what-nots but the time is running out. To me, Microsoft investing in Dell seems another desperate move just cuz they are not sure what to do.

I use Office products (Excel) daily but even I can see that what I do does not require hugh computing power, and something that my Android phone can do well, if there is a platform to which I can migrate. I think (and hope) it happens sooner rather than later.

The entire PC eco system seems to be collapsing almost overnight. It was in the making for many years though, thanks in no small part to Microsoft.

 

Dell going private, that I think would be good.
Microsoft buying dell I think could be bad for alienware..... the steambox is set to take a pretty big chunk from xbox... alienware happens to make the perfect steambox. So, the question comes down to taking a hit on the xbox by keeping alienware alive, or killing off alienware and a steambox maker.
Granted they could jump into the steambox making and just try to max out profits from both systems.

Remember win8 doesnt seem too gamer freindly.

 

They wouldn't kill it, as AW and dell laptops in general, use Windows. Hell, this might actually be good because MS could lower prices without lowering quality because Dell would no longer have to pay a windows licensing fee for each system.
People who buy consoles and have only ever played on consoles are not really the type of people AW and gaming laptops appeal to, so its likely very little if any Xbox sales would be cannibalized.

 

an alienware Xbox laptop would be interesting...

I have seen a few Xbox's actually converted into laptops. Maybe if MS bought Dell+AW and created a custom cooling system, they could put the internals of the new Xbox in a laptop form factor. You could get a stationary Xbox 720, or a mobile one... a gaming laptop that would still be completely relevant 5 years later... /goosebumbs.

 

Since Dell is going private, I'm hoping that they improve the quality of their laptops and move some NA customer support to 'Merica. As for Alienware, I'm hoping they're going to have Alienware return to the olden days when AW would really push the envelope. Hell, I wouldn't mind something that could compete against the Razor Blade in terms of performances AND form factor at the same price point. I wouldn't mind some really nice desktops too (that would belong to OriginPC). Aside from that, only time will tell if Dell is going to play it smart or stupid.

 

Interesting fact, the guys over at origin are the guys who left AW when it got bought out by dell.

 

they make some very like computers, but the price is beyond insane.

 

I find digital storm makes comparable quality computers at a much better price, and they have better customer service reviews on all the sites I have seen.

 

Both origin and digital storm are rebranded clevos. Getting the hint, guys?

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I was talking more about the desktops.

 

If by hint you mean locked down bios's then I got it.

 

Well they have to be as sager/clevo encrypt their bioses and have made it quite clear this is intentional.

 

update:

Dell's Going Private. Now What? - Gizmodo

HP Gets Real Underminey In Response To Dell Going Private - Gizmodo

 

Updated the thread title for further discussion: Dell Goes Private w/Assistance From Microsoft: What Does The Future Hold For Alienware?

 

So this should not affect our current warranties and customer support correct? Even if they do decide to shut down/sell off Alienware many of us,me included, have a 2-3 year full accidental coverage on my laptop and I feel like its going to become most useful near the end of that time frame when parts start to break down haha... might need to hold off on my high voltage overclocks for now

 

It doesn't necessarily mean that the AW division or us customers are going to suffer from It. Maybe it will all be for the better. Let see how this new turnaround will unveil.

Sent from my iPad using Tapatalk HD

 

I expect everything will turn out fine with Alienware.

 

Here have another news about Dell going private

 

From my old enough experience: In Michael we (can) trust...

He is proud of his name and I think that he will take Dell back the future it was built for in the beginning...

Just my one cent

 

This is good. Dell now won't have to answer to the whims of stockholders who just want fast cash and don't know the meaning of long term plans.

Now they need to introduce fresh idea's and products. I remember a certain other computer company MS helped out financially a long time ago that is doing extremely well now. Might know them for creating the Ipod...

 

I agree with both of you. When stockholders realizing a dividend or return on their investment is the primary focus, often the customer and ultimately the company both turn out to be on the losing end of the relationship. Focus shifts toward cutting costs and maximizing short-term capital gains instead of maximizing product quality, repeat sales, customer retention, and brand loyalty. The latter translates into long-term profitability and financial stability. When a true leader (whether a sole proprietor or an executive leadership team) is calling the shots and doing what is best for their brand and their customers, things almost always turn out better. Mr. Dell does care about his good name, and he cares about customers. I wrote to him at one point to acknowledge the superior service of one of the Alienware Level 3 support reps in Costa Rica that bent over backwards to take care of some issues I was having with an M17x R2, and the guy responded in a very personable manner. It was pretty amazing.

 

That's something Alienware suffered from from the beginning. Their products were very expensive yet very unreliable. From what I've seen the latest models are getting better. Let's hope this trend continues.