As 
the OEMs change in size, an article discusses their business strategies.
The New York Times reported that while Dell is expanding, HPE is selling off its software assets. This week Michael Dell completed a merger worth $67 billion (€59 billion) with data storage company EMC, reported last year and changed the name of his business to Dell Technologies. Meanwhile, Meg Whitman, CEO of HPE (Hewlett Packard Enterprise), announced that she had sold off most of HPE’s software to Micro Focus, a British company, for $8.8 billion (€7.7 billion), and shares in the company saw a fall of two percent later that day.
Whitman consistently talks about “building shareholder value” and talks about “growth strategies for HPE” noted the article, which adds that in May she sold off the services group, which “employed 110,000 people”; and announced after the sale that HPE would have “50,000 to 60,000 employees”. She was quoted at the time as saying “we have to understand our place in the world, there are elements of our world that are shrinking”.
Dell, however, has made his company private and taken on a $33.4 billion (€29 billion) debt with very “little personal risk”, and as he owns 70 percent of the company he is hoping that it will make enough money to pay off the debt qu
ickly. If this gamble is successful, his personal fortune could “multiply by several times” to add to the $18.5 billion (€16 billion) he is already worth.
Dell Technologies employees 140,000 people, and its revenue is said to be $74 billion (€65 billion), with Dell himself saying that “things are going well on a personal basis, market consolidation is definitely occurring”. Summing up, the article said that “both Dell and HPE. make the computers and related devices that amount to the infrastructure necessary to this new economy”, but that gradually the “profit margins can be found above the computing guts”, which is more so with “artificial intelligence technology”.
Dell has invested in research and development in the past three years, has spent $12.7 billion (€11 billion), and is also acquiring some AI technology in the merger with EMC. At HPE there have been “changes to its server and storage businesses”, and the procurement of Silicone Graphics, a “high performance computing company that peaked in the 1990s”.