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MICHAEL DELL-
FOUNDER,CHAIRMAN,CEO OF
DELL COMPUTERS
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EARLY LIFE AND EDUCATION
Michael Dell was born to a well-off, TexanJewish family, on February 23, 1965. Theson of an orthodontist and a stockbroker,Dell attended Herod Elementary School in
Houston, Texas. In a bid to enter business early, he applied
to take a high school equivalency exam atage eight. In his early teens, he invested
his earnings from part-time jobs in stocksand precious metals.
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At age 15, after playing with computers atRadio Shack, he got his first computer, an
Apple II, which he promptly disassembled tosee how it worked. Dell attended Memorial High School in
Houston, selling subscriptions to the Houston
Post in the summer. , Dell observed thatnewlyweds and people moving into newhomes were most likely to buy asubscription. He targeted this demographic
group by collecting names from marriageand mortgage applications. Dell earned$18,000 that year, exceeding the annualincome of his history and economics teacher.
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CAREER
While a pre-med student at the University ofTexas at Austin, Dell started an informalbusiness upgrading computers.
He then applied for a vendor license to bid
on contracts for the State of Texas, winningbids by not having the overhead of acomputer store.
In January 1984, Dell registered his company
as "PC's Limited". Operating out of acondominium, the business sold between$50,000 and $80,000 in upgraded PCs, kits,and add-on components.
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In May, Dell incorporated the company as"Dell Computer Corporation" and relocated itto a business center in North Austin.
The venture's capitalization cost was $1,000. In 1992 at the age of 27, Dell became the
youngest CEO to have his company ranked inFortune magazine's list of the top 500corporations.
In 1996, Dell started selling computers overthe Web, the same year his companylaunched its first servers. Dell Inc. soonreported about $1 million in sales per dayfrom dell.com.
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In the first quarter of 2001, Dell Inc. reacheda world market share of 12.8 percent,
passing Compaq to become the world'slargest PC maker. In 1998, Dell founded MSD Capital L.P. to
exclusively manage his and his family's
investments. Investment activities includepublicly-traded securities, private equityactivities, and real estate.
On March 4, 2004, Dell stepped down as CEO
of Dell Inc. but stayed as chairman of theboard, while Kevin B. Rollins, then presidentand COO, became president and CEO. On
January 31, 2007, Dell returned as CEO at
the request of the board, succeeding Rollins.
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AWARDS AND RECOGNITION
AWARDS: "Entrepreneur of the Year" (at age 24) fromInc. magazine.
"Top CEO in American Business" from Worth
magazine. "CEO of the Year" from Financial World,
Industry Week and Chief Executivemagazines.
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RECOGNITION: Dell serves on the Foundation Board of the
World Economic Forum, the executivecommittee of the International BusinessCouncil, the U.S. Business Council, and thegoverning board of the Indian School ofBusiness in Hyderabad, India.
He previously served as a member of theU.S. Presidents Council of Advisors onScience and Technology.
In 2004, Susan and Michael Dell were among53 contributors of $250,000 (the maximumlegal donation) to the second inauguration of
President George W. Bush.
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WRITINGS
Dell's 1999 book, Direct from Dell: StrategiesThat Revolutionized an Industry, is an accountof his early life, his company's founding,growth and missteps, as well as lessons
learned. The book was written in collaborationwith Catherine Friedman.
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WEALTH AND PERSONAL LIFE
WEALTH :
As of 2011, Forbes estimates Dell's net worthat $14.6 billion.
He is one of the richest people in the world,ranked 44.
Plans to open 1,000 retail outlets in China in2012.
According to industry estimates, has arevenue of nearly $2 billion in India, has
been historically perceived as a technologycompany.
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PERSONAL LIFE: Michael Saul Dell was born in Houston,Texas, on February 23, 1965. The son ofAlexander (an orthodontist) and Lorraine Dell(a stockbroker)
He married susan dell, The elite-level athlete
competed in the 2003 Ironman endurancecompetition. She chairs the Dell philanthropic foundation. Michael Dell has four children. Their names
are Kira, Alexa, Zachary and Juilette.
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MICHAEL DELL HOUSE Michael Dell's house is the stuff of Texas
legend. Apparently the most expensive everbuilt in the state. It sits on 33,000 sq ft of hilltop outside
Austin, boasting eight bedrooms, a
conference room, indoor and outdoor pools,cabanas, five-level terraced lawn and astunning view over Lake Austin.
The property tax on the house runs about a
quarter of a million dollars per year.
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PHILANTHROPHY Michael and susan dell had been involved in
a number of philanthropic activities. In 1999, Michael and Susan Dell established
the Michael and Susan Dell Foundation,which focuses on childrens causes.
By 2010, the foundation had committedmore than $530 million to assist nonprofitorganizations serving urban communities inthe United States and India.
The foundation has also provided $65 millionin grants to three health-relatedorganizations associated with the Universityof Texas
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The Michael & Susan Dell Center forAdvancement of Healthy Living, the DellPediatric Research Institute, and the Dell
Childrens Medical Center, as well as fundingfor a new computer science building on theUniversity of Texas campus.
In 2002, Dell received an honorary doctorate
in Economic Science from the University ofLimerick in honor of his investment in Irelandand the local community and for his supportfor educational initiatives.
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DELL COMPUTERCORPORATION
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Industry:
>Computer Systems>Computer Peripherals>Computer Software>IT consulting>IT services
Founded: Austin, Texas November 4, 1984Founder(s):Michael Dell (Chairman & CEO)Headquarters: Round Rock, Texas, US
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Products:Desktops
ServersNotebooks
NetbooksPeripheralsPrinters
Televisions
ScannersStorageSmart Phones
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US$ 61.49 billion (FY 2011)Operating income
US$ 3.43 billion (FY 2011)
Net incomeUS$ 2.63 billion (FY 2011)Total assets
US$ 38.59 billion (FY 2011)
Total equityUS$ 5.64 billion (FY 2011)
Revenue:
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Dell Services Alienware Force10
Subsidiaries
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Dell traces its origins to 1984, when MichaelDell created PCs Limited while a student atthe University of Texas at Austin
In 1985, the company produced the firstcomputer of its own designthe "Turbo PC",sold for US$795
The company changed its name to "DellComputer Corporation" in 1988 and beganexpanding globallyfirst in Ireland.
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In June 1988, Dell's market capitalizationgrew by $30 million to $80 million from its
June 22 initial public offering of 3.5 millionshares at $8.50 a share
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In 1999 Converge Net Technologies. Laterrebranded as Dell Inc
Next is Alienware, which introduced severalnew items to Dell products, including AMD
microprocessors.
Acquisitions:
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. The company acquired EqualLogic onJanuary 28, 2008 to gain a foothold in theiSCSI storage market
In 2009, Dell acquired Perot Systems, a
technology services and outsourcingcompany founded by H. Ross Perot
On February 10, 2010, Dell acquired KACENetworks a leader in Systems ManagementAppliances.
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Business/Corporate class brands:OptiPlex (office desktop computer systems)Vostro (office/small business desktop and
notebook systems)n Series (desktop and notebook computers
shipped with Linux or FreeDOS installed)Latitude (business-focused notebooks)
Precision (workstation systems and high-performance notebooks),
PowerEdge (business servers)
BRANDS:
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PowerVault (direct-attach and network-attached storage)
PowerConnect (network switches)Dell/Compellent (storage area networks)EqualLogic (enterprise class iSCSI SANs)
Home Office/Consumer class brands:Inspiron (budget desktop and notebook
computers)Studio (mainstream desktop and laptop
computers)
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XPS (high-end desktop and notebookcomputers)
Studio XPS (high-end design-focus of XPSsystems and extreme multimedia capability)
Alienware (high-performance gamingsystems)
Adamo (high-end luxury laptop)
Dell EMR
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Dell uses JUST IN TIMELow inventory is the another signature of
Dell business model
Manufacturing
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Assembly
software installation
functional testing (including "burn-in")
quality control.
Manufacturing process:
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. Dell Inc. has invested an estimated$60 million in a new manufacturing unit inChennai, India, to support the sales of itsproducts in the Indian subcontinent.
Indian-made products will bear the "Made inIndia" mark.
In 2007 the Chennai facility had the target ofproducing 400,000 desktop PCs, and plansenvisaged it starting to produce notebookPCs and other products in the second half of2007
Dell India
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In 2008 Dell switched the power sources ofthe Round Rock headquarters to moreenvironmentally friendly ones, with 60% ofthe total power coming from TXU Energy
wind farms and 40% coming from the AustinCommunity Landfill gas-to-energy plantoperated by Waste Management, Inc
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