Gartner Research

Dell's Leveraged Buyout Necessitates Scenario Planning for Customers

Published: 15 February 2013

ID: G00250137

Analyst(s): Adrian O'Connell

Summary

The full consequences of Dell's leveraged buyout will take time to become clear. In the meantime, users can take immediate actions to seek commitment to support their key investment areas.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The Dell leveraged buyout (LBO) will have little impact on the majority of enterprise users in the short term, but Dell will quickly need to affirm a more-detailed strategy and articulate specific priorities in any restructuring
  • Beyond the short term, the Dell LBO will result in a rationalization, renovation and repositioning of product/service offerings and/or divestments, particularly in low-margin areas
  • The LBO will facilitate an acceleration in the execution of Dell's corporate strategy, with the goal of a more rapid and robust transition to a service and solution focus

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