Looking to rebound from its recent lacklustre performance, Nasdaq-listed Dell is seeking to make acquisitions to fast-track growth.
However, Dell SA chief Stewart van Graan says the local operation is more interested in putting its money in enterprise development.
Once an investor darling, the international technology vendor has been beset with problems in the last 18 months. It lost its top spot in the US PC market, and was investigated by the US Securities and Exchange Commission for irregular accounting and financial reporting matters. The company also saw its CEO exit amid lack of investor confidence. It continues to face a delisting for failing to meet Nasdaq's reporting requirements.
The re-entry of founder Michael Dell appears to have halted the company's slide, at least on the bourse.
Van Graan explains: "[Michael] Dell has brought in some really key people to help drive the turnaround of the company. He is looking for acquisitions to boost the company's offerings or presence in certain areas. And, of course, he is looking at operational efficiency. I believe we are on the right road."
Under pressure
Last week, Dell announced it had entered an agreement to acquire privately-held SilverBack Technologies for an undisclosed sum. SilverBack provides the vendor with entry into the service delivery platform arena. The purchase has led to some concern within the channel that Dell may be going after the managed services market.
Having delivered strong growth in recent years, the local operation is under pressure to continue its upward trajectory, Van Graan admits.
"We won't pursue this through acquisitions though; we are far more interested in getting people started in their own businesses and investing in enterprise development," he explains.
Additionally, it has several other avenues that have the potential to deliver high growth.
"We've just been given oversight over sub-Saharan Africa, so we are looking at the opportunities that region offers and, of course, looking to where we can grow our market locally. You'll probably see us creeping into the retail space," concludes Van Graan.
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