Dell's criticism of HP's impending split continues. This time, the jabs come from the very top of the company.
(Photo : Charlie Brewer | Creative Commons)
As HP moves closer to executing its decision to split into two units, Dell's founder says he's still shocked by his rivals plans and points to all of the "dis-synergies" that could result from company's break up.
Michael Dell, CEO and founder of Dell, appeared to speak candidly with several reporters at his company's Dell World Conference, which was recently held in Austin, Texas.
Dell is still surprised that HP has decided to split itself into two companies, especially when considering all of the reasons the Dell rival had listed in arguing for remaining whole, he says.
"You heard about some of the companies that are splitting up and slicing and dicing themselves," Dell says. "And you have to ask yourselves, 'Who is this really for? Is this for the customers or the partners?' "
In answering his rhetorical question, Dell says the shearing and shakeups in the technology industry aren't all executed with the consumer's best interests in mind.
In early October, HP announced that it intends to spin its enterprise divisions and personal computing business into two separate companies in early 2015. The enterprise side of the company will be known as Hewlett-Packard Enterprise, while the consumer technology side will be branded HP Inc. and deal with printers and PCs.
HP CEO Meg Whitman said the move to spin in two underscores and exemplifies the efforts that company has been making to stay afloat since she stepped in to head up the company back in 2011. The company says the split will make it more nimble, but Dell's top officers were critical of the move long before the Dell CEO voiced his opinion on the matter.
Marius Haas, Dell's chief commercial officer, leveraged news of HP's split to encourage his company's investors when the news first broke. History shows that one or both halves of a split company fail, according to Haas' comments.
"[Our] customers and partners should be assured that working with Dell will remain streamlined and require a single interaction, and you will not have to navigate two companies with different compensation structures and channel offerings," Haas stated.
While the Dell CEO spent a good deal of time hurling some not-so-subtle criticism at HP during the Austin conference, the company founder indicated that stumbles by other rivals have made his organization feel especially bullish. IBM is struggling to cloud-lift itself and Apple is just now testing the enterprise market.
"We gained five times as much share as Apple in the most recent quarter in the U.S.; that's just a fact," said Dell. "Last quarter we gained more commercial business worldwide than any of our peers."
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