Dell back under Dell's control

Author: Tim Smalley
Published: 1st February 2007
Comments (12) Stumble
Micheal Dell is back in charge of the company he founded.

Micheal Dell is back in charge of the company he founded.

Michael Dell has returned to run the company he founded and turned into one of the world's largest system builders after Kevin Rollins, formerly Chief Executive Officer, resigned yesterday.

Rollins also resigned from the board of directors with immediate effect, too.

On Wednesday, representatives from the system builder warned that its fourth-quarter profits would be lower than expected, too.

The company has started to feel the strain in the wake of disappointing earnings and after the recall of 4.1 million potentially flammable notebook batteries manufactured by Sony.

Dell was CEO of his company between 1984 and 2004, at which point he hand picked Mr. Rollins as his successor.

"Kevin has been a great business partner and friend," said Mr. Dell. "He has made significant contributions to our business over the past ten years. I wish him much success in the future."

He also added that "Dell has tremendous opportunities ahead of it. I am enthusiastic about Dell 2.0, which includes our plan to provide the best customer experience, build a strong global services business and ensure our products deliver the best long-term customer value."

Discuss in the forums.
Quote samkiller42 1st February 2007, 18:15
So what was the reason behind his leaving?

Sam
Quote Tim S 1st February 2007, 18:23
Wall St. has been after his head for a while
Quote Veles 1st February 2007, 20:05
In a "Bring me his head on a silver platter" way or a "You're awesome we want you" way?
Quote DXR_13KE 1st February 2007, 20:38
maybe the first.
Quote Tyinsar 1st February 2007, 21:55
Hopefully the bit about making customer service better is true - a friend of mine recently went to buy a computer from Dell and after the hassle he got after trying to make a change to his order he canceled the order (which was an even bigger hassle).
Quote HourBeforeDawn 1st February 2007, 22:24
So does that mean Dell will no longer be a ****** company and be like how they use to be when the company first started when it was for the people not for the money, I mean I know it will still be for the money but maybe he will restore so of dells old values about not releasing ****** product, eh either way Im not going to buy from Dell ever again for the hell I had to go through with my crap laptop.
Quote Bladestorm 2nd February 2007, 00:52
I think "Customer experience" can be interpreted in a good many ways and doesn't neccessarily mean customer service, but hey it would be good if such a big company turned around and made a stand to actually improve on customer service :).
Quote Tim S 2nd February 2007, 07:30
We were dealing with Dell tech support the other day for some of machines we've got in the office. I was actually really impressed with their service and knowledge.
Quote sinizterguy 2nd February 2007, 14:49
What is with the "2.0" crap? Is it the new "XP" ?
Quote sinizterguy 2nd February 2007, 14:51
Quote:
Originally Posted by Tim S
We were dealing with Dell tech support the other day for some of machines we've got in the office. I was actually really impressed with their service and knowledge.

Every time I have had to deal with them, once you communicated what it is that you wanted, they deal with it as well as they can and pretty efficiently. If they say they will call you back - they will, multiple times if required, until you are happy that the problem has been sorted, unlike some companies who will say so, but never do ...
Quote mikeuk2004 5th February 2007, 13:21
Quote:
Originally Posted by samkiller42
So what was the reason behind his leaving?

Sam

This is the reason

Dell sued for chip kickbacks
Quote:
Dell shareholders are suing the computer maker over allegations it took kickbacks from Intel to maintain an exclusive relationship with the chipmaker. The class action suit alleges Dell's profits were inflated by as much as $800m a year by the payments. The money was paid as long as Dell rejected chips from rival supplier AMD. Dell only started offering machines with AMD processors last year.

The case, filed in Austin, Texas, alleges the computer maker failed to properly account for the money and defrauded shareholders. The filing was made Wednesday last week - the same day Dell announced Kevin Rollins would be replaced as CEO by Michael Dell.

The filing was made by law firm Lerach, Coughlin, Stoia, Geller, Rudman & Robbins LLP acting for two institutional investors.

One of the lawyers involved told AP that they do not allege that the payments were illegal, just incorrectly accounted for. The suit names 16 current and former Dell staff as well as accountancy firm PriceWaterhouseCoopers and Intel.

Dell is also under investigation by the Securities and Exchange Commission, and faces other suits over allegations that it knowingly sold faulty laptops.

In other news, returning CEO Michael Dell sent an email to staff on Friday which said the company would not be paying bonuses this year - but there would be some discretionary awards and pay rises. He said the last year had seen great efforts, but not great results, and blamed bureaucracy for the problems.

He said the company would cut the number of top managers from 20 to 12 and would not be hiring a chief operating officer.

The company's European boss Paul Bell is taking over the US business.

http://www.theregister.co.uk/2007/02/05/dell_amd_class_action/
Quote DougEdey 5th February 2007, 13:51
I hope they don't go all curved edges on their text and boxes and stuff.

Damned Dell 2.0, they'll write a book on it soon and sell it with conferences. How to make your system Dell 2.0.
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