Nearly 40 years ago, Michael Dell launched PC’s Limited from his dorm room at the University of Texas with just $1,000, aiming to sell customized personal computers directly to consumers.
Fast forward to today, and that small venture has evolved into Dell Technologies Inc., a multinational technology powerhouse with a global workforce exceeding 120,000 and annual revenues of $88.4 billion as of 2024. Under Michael Dell’s leadership as CEO and Chairman, the company has expanded far beyond PCs to become a leader in enterprise solutions, data storage, and cloud services, continuing its legacy of innovation and growth in a rapidly evolving tech landscape.
A quick history of Dell
Current CEO: Michael Dell
HQ: Round Rock, Texas, USA
Annual revenue: $88.4 billion (2024)
When Michael Dell started the company in 1984, he likely didn’t anticipate leaving university after his first year to run it full-time. His vision was to sell IBM-compatible PCs directly to consumers, assembling each machine from stock components to better match customer needs. This innovative approach allowed customers to select options tailored to their preferences, setting Dell apart in a rapidly growing market.
In 1985, Dell introduced its first in-house designed computer, powered by an Intel processor, and priced competitively at $795. By the end of its first full year, PC’s Limited had generated an impressive $73 million in revenue. In 1987, the company rebranded as Dell Computer Corporation and launched its first international subsidiary in the UK. A year later, fueled by an 80% growth rate, Dell went public. The company expanded its manufacturing footprint, opening a center in Ireland in 1990 to better serve customers across Europe, the Middle East, and Africa (EMEA).
As the internet gained momentum, Dell embraced e-commerce in 1996, one of the first in its industry to do so. The success of its online sales model spurred further international expansion, including a significant push into the Asia-Pacific market.
By the turn of the millennium, it would have manufacturing centers in China, Ireland, Brazil, and the United States. By 2001, Dell would become the number one computer systems provider worldwide; this year would also mark the beginning of its relationship with EMC, the data storage experts founded back in 1979.
While rivals such as Compaq, Gateway, and Packard Bell faltered, Dell continued to innovate across markets. In 2003, another rebrand would create Dell Inc., in recognition of its growing product line, such as the first Dell brand printers.
In 2006, Dell bought gaming hardware specialists Alienware. The same year, it saw growth stall and lost its title of the largest PC manufacturer to Hewlett Packard.
The late 2000s were challenging. Downsizing and closures reduced headcount at the company and the release of Apple’s first iPad tablet cannibalised PC sales. Dell Technologies’ own attempts to create a popular handheld with the Dell Streak were not commercially successful and its PC business declined.
But in 2013, things began to turn around. This was the year Michael Dell bought the company back from shareholders with help from a private equity firm, with a vision to focus on innovation.
Three years later in 2016, Dell merged with EMC to create Dell Technologies, a deal which then was the biggest in tech history. EMC had an 80% equity stake in VMware, which passed into the hands of Dell Technologies. VMware was held as a separate company until it successfully spun off from Dell in 2021.
In 2021, Dell Technologies also released Dell Apex, its anything as a service (Xaas) portfolio that covers cloud, storage, and infrastructure.
In 2022, Dell Technologies introduced new advancements to its Apex portfolio, expanding its 'as-a-service' offerings to meet increasing demand for flexible cloud and infrastructure solutions. The company also continued to invest heavily in artificial intelligence and multi-cloud capabilities, positioning itself as a major player in AI-ready infrastructure. In 2023, Dell executed its largest-ever expansion of Apex, with a focus on facilitating multi-cloud deployments that allow customers to streamline management across diverse cloud environments.
With the growing demand for AI-driven data centers, 2024 saw a strategic partnership with Nvidia to support AI workloads. Ahead of the 2024 Dell Technologies World conference, the company’s stock hit an all-time high, driven by expectations of increased demand for its AI servers designed with NVIDIA GPUs. Industry analysts estimate that Dell’s AI-focused server business could reach $10 billion in revenue by fiscal 2025, reflecting the company's strong positioning in the future of AI infrastructure.
What does Dell Technologies sell?
Dell Technologies is a leading provider of end-to-end solutions – everything from personal computers to high-end business laptops to servers, monitors, storage, and network security. It has the No1 position in high-end PC gaming with a near 20% share, the same position it holds for PC workstations (42.2% share) and PC monitors (19.7% share).
In addition to its hardware, Dell Technologies has a range of professional services related to multi-cloud, data and applications, and security.
Dell Apex provides infrastructure on-premises and in the cloud on a self-service access basis. This is available in the United States, United Kingdom, France, Germany, Denmark, Norway, Australia, New Zealand, Spain, Italy, Sweden, Finland, Ireland and Singapore.
Like many in the tech sector, Dell is also heavily invested in generative AI. Customers can expect to make use of Dell services that support AI strategies, training, and deployment including the use of chatbots for customer service or AI models for coding.
As part of a strategic partnership with Nvidia, Dell has launched infrastructure optimized for AI and machine learning, including servers equipped with Nvidia GPUs to meet the rising demand for AI-driven applications across industries. This focus on AI server infrastructure has positioned Dell to capture new growth in AI applications, with expected revenue from AI-specific servers projected to reach $10 billion by fiscal 2025.
Dell Technologies M&A activity
Dell Technologies has a rich history of mergers and acquisitions, using strategic investments to strengthen its position across diverse technology sectors. Beyond major acquisitions like EMC in 2016, which positioned Dell as a leader in enterprise storage, and Alienware in 2006, which solidified its dominance in gaming hardware, Dell has pursued a targeted M&A strategy to enhance its offerings in cloud, security, and data analytics.
According to its Investment Thesis, Dell focuses on "leveraging our strengths to extend our leadership positions and capture new growth opportunities". This includes investments to create a resilient and agile supply chain capable of adapting to global fluctuations and market disruptions.
Over the years, Dell has acquired a variety of companies to broaden its capabilities:
- EqualLogic (2008): Strengthening Dell’s position in storage with iSCSI storage solutions for enterprise-level applications.
- Boomi (2010): Expanding into cloud integration with Boomi’s platform-as-a-service, a foundational asset in Dell's hybrid and multi-cloud strategies.
- SonicWall (2012): Enhancing Dell’s security portfolio with next-generation firewall and cybersecurity solutions, bolstering its network security capabilities.
- StatSoft (2014): Adding advanced analytics and data science tools, enabling Dell to support clients in predictive analytics and big data processing.
- EMC Corporation (2016): In a landmark deal, Dell acquired EMC Corporation for $67 billion, marking the largest tech acquisition to date. This acquisition included EMC's 80% stake in VMware, a leader in virtualization and cloud infrastructure.
- Cloudify (2023): Dell acquired Cloudify, a cloud orchestration startup, to enhance its cloud management solutions.
In recent years, Dell has continued this trend with acquisitions aligned with its focus on cloud computing, AI, and cybersecurity. The spinoff of VMware in 2021, after previously holding an 80% stake, provided Dell with capital to further invest in these key areas while allowing VMware to operate more independently.
This targeted acquisition approach is part of Dell’s broader strategy to position itself as a leader in multi-cloud, edge computing, and AI-ready infrastructure. It remains focused on M&A opportunities that align with emerging technologies and customer needs, enabling Dell to continue innovating and expanding its market reach.
Doing business with Dell Technologies
According to the company’s mission statement, Dell sets "ambitious goals that reflect who we are and what we stand for, even when we don’t yet know the path forward". As the technology landscape evolves, Dell is committed to "innovating to achieve our goals and empower our customers to achieve theirs".
The company has established several core sustainability targets to be achieved by 2030. These include recycling or reusing an equivalent product for every unit sold, using 100% recycled or renewable materials in its packaging, and ensuring over 50% of its product content comes from recycled or renewable sources.
In collaboration with Intel, Dell unveiled Concept Luna in 2022, a sustainable PC prototype designed to minimize environmental impact. Luna’s modular architecture eliminates adhesives and reduces the number of screws, making the device easy to repair and dismantle. This design also aims to extend the life cycle of components, promoting reusability and supporting a more circular economy in tech.
Dell has further embraced a "multi-cloud by design" strategy, with its Apex platform undergoing a significant expansion in 2023. Apex now offers a broader range of services, giving customers seamless multi-cloud solutions for their IT needs.
Dell Technologies World 2024 underscored Dell’s focus on AI infrastructure and partnerships. During the event, Dell highlighted its collaboration with Nvidia to address rising AI server demand, which has driven the company’s stock to new highs. Analysts project that Dell’s AI server division, bolstered by this demand, could generate $10 billion in revenue by fiscal 2025.
