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Dell Reflects on 25 Years of PCs

An anonymous reader writes "Michael Dell, founder of the world's largest computer company, took a few minutes with CNet News.com to reflect on the past 25 years and offer a few personal notes. While Dell certainly has an impressive business history, he still thinks the best is yet to come. From the article: 'Michael Dell started off using PCs to create homework shortcuts, the way many young people at the time discovered the new devices. Few people, including Dell's parents, realized exactly how large the potential was for the personal computer. More than 20 years after he founded PC's Limited, he admits his parents never quite embraced his decision to leave the University of Texas at Austin to start the company that would eventually bear his name and record $56 billion in revenue during its last fiscal year.'"

48 of 198 comments (clear)

  1. Have you hugged your inheritence today? by Anonymous Coward · · Score: 3, Funny

    "More than 20 years after he founded PC's Limited, he admits his parents never quite embraced his decision to leave the University of Texas at Austin to start the company that would eventually bear his name and record $56 billion in revenue during its last fiscal year.'"

    Did they "embrace" the money?

  2. If she's like MY mom... by Bandman · · Score: 5, Funny

    "...but think about what could have happened if you'd have stayed in school"

    1. Re:If she's like MY mom... by kfg · · Score: 2, Funny

      "...but think about what could have happened if you'd have stayed in school"

      Paying off $100k in student loans with your tips from Denny's?

      KFG

    2. Re:If she's like MY mom... by DysenteryInTheRanks · · Score: 2, Interesting

      At least if he'd stayed in school he would never have met his loser, dropout friends Bill, Larry and Steve, who are CONSTANTLY in trouble with the law.

  3. Re:hmmm, some generic info about CEO Dell's home P by Kuj0317 · · Score: 3, Insightful

    Fun as it is to complain that xyz people have superfast computers that they'll never use, realize this: computers work on an economy of scale. If less people bought high end computers: - Computer technology would not update as fast - High end computers would cost several times more So, the fact that they use these

  4. Re:hmmm, some generic info about CEO Dell's home P by laffer1 · · Score: 5, Funny

    Even he knows the lowend dimensions and optiplex are crap.

  5. Business, Not Computer, Skills by truthsearch · · Score: 5, Insightful

    His skill was in streamlining a business model. AFAIK he hasn't done anything directly to improve computers. He helped lower the cost to consumers. He deserves a lot of business credit, but I'm not sure he deserves any geek cred. He's already been written up in BusinessWeek. I don't think he warrants a /. article.

    1. Re:Business, Not Computer, Skills by avronius · · Score: 2, Interesting

      Volume sales will, in general, lower the price of a commodity. Assuming that there is demand for the product, lower price will result in greater accessibility and, potentially, faster adoption rates. As there is demand for product, companies hope to innovate to win market share. In this case, Dell's lower prices and [reasonably] consistent quality has led manufacturers to compete with innovative products.

      Of course, I may have taken too much cold medicine...

    2. Re:Business, Not Computer, Skills by truthsearch · · Score: 2, Insightful

      I can buy a Ferrari. That doesn't give me racing cred.

  6. Other dropouts... by nascarguy27 · · Score: 3, Insightful

    Who did well include Bill Gates and Steve Jobs. I think it's strange how 20-30 years ago, college dropouts could do so well. Now, it's almost expected to have a Bachelor's degree or even a Master's for some occupations.

    --
    Funny createSig(Witty remark, Odd reference)
    {
    return (Funny)remark + (Funny)reference;
    }
    1. Re:Other dropouts... by 192939495969798999 · · Score: 3, Informative

      Yeah, Gates dropped out of Harvard... that's not exactly a rags to riches story, it's more like a riches to ridiculous riches story. Dell is an equally well connected and savvy businessman, he didn't drop out and then go for it from scratch, he more than likely had a good idea that money was coming in before he dropped out. That's the key part -- make sure to have some $ coming in (with signs of more) BEFORE you drop out!

      --
      stuff |
    2. Re:Other dropouts... by vertinox · · Score: 2, Insightful

      Well the point of their stories is that they dropped out to start their own business. No one ever got rich by getting a college degree and then sitting in a cubicle all day filling out TPS reports for a corporation.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
    3. Re:Other dropouts... by kfg · · Score: 2, Insightful

      I think it's strange how 20-30 years ago, college dropouts could do so well. Now, it's almost expected to have a Bachelor's degree or even a Master's for some occupations.

      This isn't a difference in the times, it's the difference between being the master or the slave. There's nothing to stop someone from dropping out of High School, founding a company and refusing to hire Phds because they haven't done any post doc work.

      As a caveat in support of your thesis, however, I'll note that's its becoming increasingly common for parents to demand a Masters degree in pedegogy to pay someone to teach their little princess how to play Twinkle, Twinkle Little Star on the violin.

      A greater waste of everybody's resources is hard to imagine, until you start thinking of government.

      KFG

    4. Re:Other dropouts... by Anonymous Coward · · Score: 3, Informative

      I knew Michael back when he was starting, and you're correct that the money was coming in before he dropped out. The guy was making about $20K/year in high school by hiring friends to help him sell subscriptions to the Houston Post at the same time as he was gray marketing IBM PCs out of his house.

      When he went to UT in 1983 (he was pre-med, IIRC, because being a doctor is "an honorable profession"), there were exactly two licensed IBM dealers in the Austin area. Since IBM allocated machines per store rather than by regional demand, this meant that there was a 4-8 week wait to get an official IBM PC in the Austin area.

      Michael walked into that environment and used his significant negotiating skills to start bringing bare bones PCs in from all over the country (persuading people to "bend" their IBM contracts) and selling them at a significant discount from IBM's prices with a turnaround in the neighborhood of a week. As a result, his revenues from PCs Limited were around 7 figures by the end of his freshman year... So Sophomore year probably seemed a bit pointless to him.

      He definitely had the technical skills to put the computers together himself and he understands and likes the technology, but it has always been the money that interests him most. He has always had a remarkable ability to identify the talents in others and put them to work for him, but he's never personally been the source of actual technical innovations.

      Gates, on the other hand, really is an uebergeek. And a shrewd businessman, of course, but the biggest difference between Gates and Dell is that Gates has always been interested in making lots of money by creating innovative technology, while Dell has always been interested in making lots of money by selling technology, innovative or otherwise.

  7. IBM? by mrxak · · Score: 4, Funny

    Why does this slashdot story have the IBM logo?

    1. Re:IBM? by mrxak · · Score: 2, Interesting

      But the article is not really about IBM itself, it's about PCs in general. Why not put it down as Hardware or IT? Or even Businesses or Technology?

    2. Re:IBM? by Anonymous Coward · · Score: 3, Funny

      Wrong. IBM is taking business from Dell left & right. The logo is there to stick it to the Dell man.

    3. Re:IBM? by Himring · · Score: 3, Funny

      Why does this slashdot story have the IBM logo?

      I bet you read eula's too

      --
      "All great things are simple & expressed in a single word: freedom, justice, honor, duty, mercy, hope." --Churchill
  8. looking back... by dosle · · Score: 2, Funny

    "Ah, we at Dell have sure come a long wa-- BOOM "

  9. Re:hmmm, some generic info about CEO Dell's home P by timeOday · · Score: 4, Insightful
    Dell and everyone else is welcome to their over-configured machines, but (and related to today's previous slashdot article) PCs are becoming overconfigured underused status symbols and far less utilitarian. Dell's vision of PCs importance in the future is distorted by the company he must continue to make profitable.
    I would not assume that Dell's plan for continued profitability is for everybody to buy high-end, high-margin machines. Quite the opposite. Dell is really not a starry-eyed futurist, either. The company never came to prominance until the late 90s when the traditional $2500-$3000 average PC price started to plunge. Dell is all about efficiency and low overhead. I'm guessing Dell sees its future in selling millions (billions?) of cheap PCs to developing markets around the world.
  10. Re:hmmm, some generic info about CEO Dell's home P by Chemical · · Score: 4, Interesting
    Operating System: XP Professional

    guessing not a single web app is served out of his compouter, from IIS and .NET technology (one of the main reasons for having PRO)

    Actually, I assume the main reason he would choose Pro is because it lets you join domains. Home doesn't have that ability.

  11. Re:hmmm, some generic info about CEO Dell's home P by Rude+Turnip · · Score: 5, Funny

    My only response is this...we flew to the Moon and back using a computer with 32kb of RAM. Have you *at least* done that with your system?

  12. Re:hmmm, some generic info about CEO Dell's home P by pizza_milkshake · · Score: 2, Funny

    Yes, but can Michael Dell's dual Xenon 32GB RAM workstation run Windows Vista?

  13. Re:hmmm, some generic info about CEO Dell's home P by vertinox · · Score: 5, Insightful

    I don't even have an opinion as to the goodness or not about the utilization... don't necessarily care people aren't using more than 5% of their machine -- but it's more a reflection of the effectiveness of the marketing of computers than their necessity and usefulness. Owning a machine like Dell's doesn't suggest a need.

    Two things.

    First, people like to overcompensate for things they could never use but for status. Why buy a car that can go 150mph when its illegal and unfeasible to drive it at that speed?

    Secondly, computers age quite fast. If you buy a computer, it is reasonable to overcompensate because in 2-3 years an average computer will be out of date and underpowered. The top of the line computer today will be the below average in 5 years but you still can get some life out of it.

    Remember 640K ought to be enough for anyone.

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  14. Dell vs. HP by Sgt_Astro · · Score: 2, Funny

    Depending on how you slice the pie Hewlett Packard is the largest PC company. When is that the case? Pretty much any other way you look at it.

  15. We can go further with this... by monoqlith · · Score: 3, Insightful
    Let's see.

    • Forbes magazine says Michael Dell is worth $17.1 billion dollars.

      If I were to guess, he probably hasn't spent more than $100 million of that.

    • Forbes Autos says he has a Porsche Boxter and a Hummer

      Yeah, I bet he only uses one of them at a time! And he probably doesn't even go over 70mph!

    • This site says his house is 33,000 square feet.

      He totally doesn't use any more than 10,000 square feet, I bet!



    • Point: welcome to the gratuitous world of the absurdly wealthy.


  16. I disagree by Shivetya · · Score: 2, Insightful

    It is through the streamlining of purchasing computers that led to more standardization across components. It also led to innovations in cooling and airflow, integration, and ease of use. They have to find new ways to keep people coming back. This means more features, easier access to the features, and easier use. This just doesn't happen. The market has to be there or be invented.

    While Mr. Dell might not have been personally in the design process of every machine I bet he did have some influence over early machines and to this day the ideas he suggest do have weight if not merit. Too many people discount Dell, Gates, and others simply because they don't like the product or just have some inate personality problem - especially against people who did well.

    Not everyone can do this, and obviously not as well as he did. Dell is very much his company just like Jobs is Apple. You cannot separate the two and have the same thing. Both could go off and do something else but its their drive and initiative that led their respective companies to success.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
    1. Re:I disagree by quanticle · · Score: 2, Interesting
      It is through the streamlining of purchasing computers that led to more standardization across components.


      Oh, is this why Dell computers all have proprietary cases, motherboards, and power supplies? Dell has not done anything to improve standardization in terms of physical components. Dell has simply continued the tradition set by HP, Compaq, and others of creating and using propretary components whenever possible in order to keep the consumer coming back to them and them only when components fail.

      --
      We all know what to do, but we don't know how to get re-elected once we have done it
  17. Re:Express Service Code by d3am0n · · Score: 5, Interesting

    Actually I work at Dell doing technical support. In fact I'm typing this from work right now while I'm between calls. What happened that made your experience so bad? I've only been here about 2 months but they've been hammering customer satisfaction into us like it was a cure for cancer. I guess they got t3h shitz from other outsource sites where basically working conditions sucked and nobody cared. However i work directly for Dell itself and I'm tellin you, we'll stay on the phone for like 3 hours if that's what it takes. All of my co-workers here are pretty hardcore geeks and techies since the area our site is located in had an economic downturn in the tech industry so the majority of us have programming diploma's and electronic engineering degree's.

  18. Re:I doubt it is standard XP Pro... by timster · · Score: 2, Interesting

    This isn't so.

    http://en.wikipedia.org/wiki/Physical_Address_Exte nsion

    True, it's not the same as full 64-bit support, as any individual process has to jump through hoops to use more than a 32-bit address space. XP Pro can certainly make use of it, though.

    --
    I have seen the future, and it is inconvenient.
  19. I remember early PCs in high school... by Anonymous+Freak · · Score: 5, Interesting

    Discovering the joy that was a 'plotter', that produced nice smooth output, rather than the pixelated crap that came out of dot matrix printers. Found an HP letter-size plotter used really cheap, and bought it. Started printing out my homework on that, rather than on the dot matrix. The handwriting-style font that was included with Windows 3.0 worked very well for this. Plotting out my homework on notebook paper, with a blue pen, the teacher just thought I had perfect handwriting. :-D (Although, it did take about half an hour to plot out a single page....)

    My high school also had early internet access, thanks to a donation of a 'mini-supercomputer' from a local supercomputer company (Sequent,) and dial-up access provided by a local college during my senior year. This computer had a whopping 32 386 processors, (which makes it marginally slower than my current cell phone,) and our connection used a quad-linked 9600 baud (effective ~38kbps) SLIP connection. It even ran X. Too bad the web browser wasn't invented until after I graduated... I had to wait another two years before the internet became 'public', and a friend and I convinced the local ISP to install SLIP software so we could try out this 'Mosaic' thingy... (On OS/2 of course. We wouldn't be caught dead running Windows.)

    Then there was when (this same) friend would spend every night dialed up at 14.4kbps to a BBS in Finland so he could download install disks for this 'Linux' thing... One disk a night. Man, he had a big phone bill that month.

    --
    Another non-functioning site was "uncertainty.microsoft.com."
    The purpose of that site was not known.
  20. College is when to start by MikeRT · · Score: 3, Interesting

    If you're smart, you can get by on someone else's dime be it family, student loans, scholarships or GI bill money. It's the best time to start a business. In fact, it is the time when a young person can probably be at his or her safest while doing it. They have access to a lot of cheap help and free mentorship.

  21. Re:hmmm, some generic info about CEO Dell's home P by Bender0x7D1 · · Score: 2, Informative

    Secondly, computers age quite fast. If you buy a computer, it is reasonable to overcompensate because in 2-3 years an average computer will be out of date and underpowered. The top of the line computer today will be the below average in 5 years but you still can get some life out of it.

    Actually, it makes more sense to buy a middle of the road system today and upgrade it in 1.5 - 2 years. You probably break even on the money since you avoid the premium for the best hw, but you will have more power than that when you buy you next system. There is an added benefit of actually having 2 systems after 2 years. You may not like the power of the first one, but it will make a good file server, a good PC for your kids, or whatever else you feel like using it for.

    --
    Reading code is like reading the dictionary - you have to read half of it before you can go back and understand it.
  22. Re:hmmm, some generic info about CEO Dell's home P by crunch_ca · · Score: 2, Interesting
    Many years ago, orders came down from management that we needed to keep track of system resource usage. My boss at the time set up a complex series of scripts to track system load using uptime, etc. He was able to get a nice accurate model of system usage.


    Of course, management came down heavy on him. "Why is your department only using 15% of their machines capabilities! Every other department has 100% utilization of their resources". The other managers had just filled out 100% in the weekly reports.

  23. and the future looks HOT by mgabrys_sf · · Score: 2, Funny

    Seriously they're on FIRE!

  24. Re:I doubt it is standard XP Pro... by timster · · Score: 2, Insightful

    Well, that isn't quite right. Regular 32-bit processes that aren't aware of PAE can still make use of 3GB *each*. So you could have 10 different regular apps each using 2GB of RAM without paging to disk.

    Also, XP should be able to make perfectly good use of that RAM for disk cache, which could provide a substantial benefit to all processes.

    --
    I have seen the future, and it is inconvenient.
  25. Re:hmmm, some generic info about CEO Dell's home P by Anonymous Coward · · Score: 4, Funny

    Problem is modern computers must produce less thrust than those old ones. My computer just humms, and really dosn't move anywhere, much less to the moon. Now some of those old IBM's I have taken apart, they have 4+ huge 120V fans that move a lot of air.. so I can only guess how much thrust those old pre IBM computers had.. obviously enough to go to the moon.

  26. Re:hmmm, some generic info about CEO Dell's home P by apflwr3 · · Score: 2, Insightful

    I don't even have an opinion as to the goodness or not about the utilization... don't necessarily care people aren't using more than 5% of their machine -- but it's more a reflection of the effectiveness of the marketing of computers than their necessity and usefulness. Owning a machine like Dell's doesn't suggest a need.

    I'm not really sure I see your point.

    First, Mr. Dell did not pay retail for this machine-- in fact in all likelihood the company owns it, not him. I would also say it doesn't look good for the CEO of a computer manufacturer NOT to use the absolute best his company has to offer. It demonstrates success as well as pride. Perhaps your criticism would be valid if we were talking about Paris Hilton or Al Pacino or even your dad having a similar rig so they could email and IM... But we're not.

    Finally-- yes, there are a lot of people who have setups that are pure overkill. But then there are many who find a way to push these machines to the limit and still feel they aren't enough. Dell's machine (as well as a brand new Quad Mac Pro) would still take time to render video, for example-- and more so to do complicated effects on HD. A utilitarian machine from five or six years ago would choke on complex video and lag when importing a CD.

  27. Re:Business Support by b0s0z0ku · · Score: 3, Interesting
    Plus, ANY time I talk to their tech support, they actually from America.

    That's because you have the good warranty plan. The poor schmucks who get the "home use" Dells like the Dimension with the regular warranty are the ones who get sent to Apu and Pradeep. (No offense intended to Indians, but people who don't speak English shouldn't be doing tech support for Americans!)

    -b.

  28. Has to be said by johansalk · · Score: 4, Insightful

    Had I been a Billionaire I would've been optimistic about the future too.

  29. The true lesson learned by argoff · · Score: 4, Insightful

    Has anyone ever noticed how the PC industry is not like other industries - eg cell phones which are all fragmented and incompatable and the user is mostly locked out from the hardware, or even laptops - try buying a laptop case and building your own at home. Try taking a tire off a chevy and putting it on a ford, or the breaks, or even the engine.

    The PC industry is the way it is because IBM just assumed they could patent the interfaces - when they couldn't. When people started to copy them, billions and billions of dollars worth of lawsuits started to fly all over the place. IBM against Compaq, Intel aganst AMD - inspite of great effort and costs, they were given no rights to impose patents over the interface. Maybe this was a failure for IBM and Intel, but it created a nuclear explosion of business, commerce, opportunity, and R&D for the rest of us.

    The moral of the story is that patnets do not help R&D and do not help finance R&D, they help lock out competition, and force the industry to fragment and center around a licensing model (which is good for lawyers and bad for engineers) instead of a service model (which is good for engineers, but bad for monopolies).

  30. Re:Business Support by zakezuke · · Score: 2, Funny

    That's because you have the good warranty plan. The poor schmucks who get the "home use" Dells like the Dimension with the regular warranty are the ones who get sent to Apu and Pradeep. (No offense intended to Indians, but people who don't speak English shouldn't be doing tech support for Americans!)

    While I appricate the fact that it's often easier to understand someone from your own region, America is a big enough place that regional dialects really get in the way of understanding. I would rather get tech support from India than for example Texas, Arkansas, or Mississippi. I remember calling about a software bug and I got told flat out that "may you be fishing 'fer craw-dads and got yer self a june buggie. Put on dem shoes and wack that mole". To this day I have no idea what that means. But I can say THANK GOD for Apu and Pradeep. Never has indian techsupport reccomended I put on shoes, wack moles, nor accuded me of fishing for craw-dads.

    --
    There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
  31. Re:hmmm, some generic info about CEO Dell's home P by ewl1217 · · Score: 2, Insightful
    Operating System: XP Professional
    guessing not a single web app is served out of his compouter, from IIS and .NET technology (one of the main reasons for having PRO)
    Actually, I assume the main reason he would choose Pro is because it lets you join domains. Home doesn't have that ability.
    Actually, the most likely reason that he's using Pro is that the $50 difference between Home and Pro means nothing to him. He probably doesn't use his computer for some insanely specialized purpose like everyone here seems to think. We're talking about his home computer here, remember?
  32. Re:Dell IS Proprietary by Paolone · · Score: 2, Interesting
    Did you ever have to replace a power supply in a Dell tower? Proprietary plug.
    The Dells we have in the testing lab have ATX power supplies (even if the PSU itself has one of the stragest shapes I've ever seen).
    Did you ever try to use a case from Dell? Proprietary too.
    Nothing that a dremel can't fix...
  33. ARRRRRRRGH by Mittermeyer · · Score: 3, Interesting

    I bombed out of UT Austin about the time Dell was quitting and running his biz. I knew about his company. To me my choices were look him up and get a job there, or get a computer job at a hospital.

    I figured, eh the hospital will always have money, and this kid is likely to go through ups and downs and have cash flow issues, I want the security.

    Figure out just how I feel about that.

    --
    ________________________________________ History Must Not Fall Into The Wrong Hands ___________________________________
  34. Re:Express Service Code by labnet · · Score: 2, Interesting

    What the Dells of the world need is to rate their customers technical competence level.
    So if they realise you have the smarts, you can be elevated to a similarly rated tech.
    Imagine the efficiencies it would create for both sides!

    --
    46137
  35. Re:hmmm, some generic info about CEO Dell's home P by R3d+M3rcury · · Score: 2, Funny
  36. Re:hmmm, some generic info about CEO Dell's home P by shiftless · · Score: 2, Insightful

    First, people like to overcompensate for things they could never use but for status. Why buy a car that can go 150mph when its illegal and unfeasible to drive it at that speed?

    Illegal? Sure, on public roads. Doesn't stop people from doing it. I've been to 150 MPH plenty of times on the interstate and on long, straight, clear highways. And there are plenty of race courses where you can take your car to stretch its legs, legally.

    Furthermore, a car that can do 150 MPH generally has a lot more power than one that struggles to break 100, and it will thus accelerate much faster (at all speeds.) You might never get into a race in your life, but you might could use that extra acceleration when executing a tricky merge into heavy traffic.

    In conclusion, don't jump to the conclusion that every time someone buys something that you deem "excessive", that it's for the purpose of status or to show off. You are just into different things than other people are. When asked what a car is good for, you might say "getting from point A to point B". To me, the best part is the trip, not the destination.