Michael Dell returns for Dell 2.0

 

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By Maggie Holland

Posted on 1 Feb 2007 at 14:38

More than twenty years after he founded the company, Michael Dell is back in the driving seat as Dell's chief executive (CEO), a position he handed over to Kevin Rollins in 2004.

The company had suffered another blow by having to announce that its fiscal year 2007 revenues will be below expectations.

Rollins who was, until yesterday, the company's CEO has resigned forthwith from his leadership position and as a member of the board.

His departure is the second sharp exit from a Dell executive recently, following former chief financial officer (CFO) James Schneider's departure last December.

'The Board believes that Michael's vision and leadership are critical to building Dell's leadership in the technology industry for the long term,' said Samuel Nunn, presiding director of Dell's Board.

'There is no better person in the world to run Dell at this time than the man who created the direct model and who has built this company over the last 23 years.'

Rollins' departure has led to speculation that it is related to the annus horribilis Dell has endured, in which it was roasted under the US Security and Exchange Commission (SEC) spotlight for alleged accounting irregularities, as well as feeling the additional heat generated by stiff competition.

But Michael Dell suggested otherwise towards the end of 2006 by saying: 'Characterisations of the company's challenges being only of Kevin's doing are inaccurate.'

In further support of Rollins, Dell added: 'Kevin and I run the business together. If you want to blame somebody, you can blame me, too.'

Despite the change of management and bleak financial news, Michael Dell remained upbeat about the future.

'Dell has tremendous opportunities ahead of it,' he said.

'I am enthusiastic about Dell 2.0, which includes our plan to provide the best customer experience, build a strong global services business and ensure our products deliver the best long-term customer value.

'Kevin has been a great business partner and friend. He has made significant contributions to our business over the past 10 years. I wish him much success in the future.'