Michael Dell has had a very busy month. He has been snarfing up top executives fromthe consumer electronics industry and hitting the consumer feedback loop to fix his ailing company that was recently over taken in PC sales by notoriously scandalous HP.
Dell has been on a hiring and firing blitzkrieg this month. He’s nabbed Ron Garriques, a famous Motorola, can-do insider that was largely responsible for many of the good things that have managed to come out of Motorola in past years. Garriques will report directly to Michael Dell as the head of consumer goods.
Stock Tip – After Mike Zafirovsky lost out to Ed Zandr’s for the CEO role and left, it looks like the company has suffered another insider punch with the loss of Ron Garriques indicating an inability to keep the top brains in a company once famous for employee loyalty. I wouldn’t pick up Motorola as a bargain stock today if I were you.
Dell had also recently picked up Michael Cannon the former CEO of Solectron a major service provider of electronics repairs and refurbished units that has contracts with Motorola and many carriers and retailers. Cannon will head operations.
Meanwhile Dell has been doing some house cleaning. The company has seen its SV of Human Resources, SVP of Worldwide Operations, CFO, SP of Consumer Products, SVP of America, and SVP of Marketing that have either already left or anounced their departure to take place within the next two months.
Open Source Offering
Dell has not sat back doing interviews for new brains. He’s also been engaged in gathering valuable focus group data that is now being used to offer up Linux pre-installed on Dell machines to provide computers running the OS and Open Office platform at prices hundreds of dollars lower than Microsoft Operating Systems and Microsoft Office Products.
The consumer demand for these products is growing and the premium for office products is rapidly losing its luster to even staunch Business consumers, especially small business. When the price is right, the price is right and its possible that Dell will also be able to leverage this offering to its large corporate base of customers that may not be eager to go through another 6 years of Microsoft OS image problems issues and more. This could prove to be the time for those corporate customers to vote with their IT resource pocket books and go for cheaper OS’s and push those remaining funds to more useful server side tools and business intelligence systems.