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Microsoft plus Dell: Could it be a Match Made in Heaven?

by Sam Kappelsky
on January 31
with Comments Off

Microsoft plus Dell: Could it be a Match Made in Heaven?

With the evolving speculations that Dell is considering going private in the near future, the latest rumor has it that Microsoft might be getting involved in the transition. The Redmond, Washington-based software giant is said to be thinking about putting in anywhere from $1 to $3 billion into the buyout. Would it be a good deal for Dell, Microsoft or both?

Even though Dell CEO Michael Dell states that his company is not only a PC business, most people think of PCs right away when they hear Dell. This just may be one of the reasons behind Dell’s slowing sales in the recent years, since the PC market has been suffering somewhat of a drop lately.

What would Dell gain by going private? Mainly, the company would be able to take risks it would never be allowed by shareholders if it remained public. Anything considered too bold or unconventional is usually looked upon with a big frown in the Wall Street circles.

Dell could really use some extra cash if it really plans to go private, while Microsoft has the cash that isn’t giving it much return at the moment anyway, and it is also believed to have an interest in a closer relationship with Dell. The rumor that Microsoft is going to buy a big stake in taking Dell private isn’t hard to believe at all when you consider these factors. Since the two companies are already in a pretty close business relationship, the transition should be expected to go quite smoothly.

As editor of Windows8Update.com, Onuora Amobi says, “The Microsoft Dell marriage would be a match made in heaven. It would be perfect synergy as it would give Microsoft the reach and the instant credibility as a “device company”.” Other experts agree by saying that as a private company, Dell has the potential to become a significantly more powerful player in the technology market, and being a private company plus becoming so closely tied to Microsoft might make it a superpower. As analyst Rob Enderle of the Enderle Group speculates, a Dell-Microsoft partnership would be vastly more powerful than the combination of Google and Motorola.

What are the possible scenarios of a Microsoft-Dell partnership? The first idea that comes to mind would be Dell taking over the production of Surface tablets. Since making hardware has never really been Microsoft’s ‘thing’, handing off hardware production to Dell, an established hardware manufacturer, would make perfect sense.  This kind of a partnership would carry a risk of upsetting Dell’s other partners and vendors, so Dell would have to remain firewalled from Microsoft to a large enough extent to prevent that from happening.

It looks like very soon we should be able to see whether any of these rumors have ground. The actual developments may end up being much more interesting than any speculations we have heard so far.

Sam is an IT specialist with over 10 years of experience in tweaking, fixing and supporting computers and networks of all types and sizes. He enjoys exploring new developments in the field of technology and sharing his experiences and experiments with the world.