Rollins named next Dell CEO

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Kevin Rollins, Dell Inc.'s president and chief operating officer, who has been in charge of the Round Rock3, Texas4, company's day-to-day operations, will take over5for founder and CEO Michael Dell6, who has been more focused on the Dell's strategic direction, including technology, research and development.

Rollins, who has been with Dell since 1996 and became its president in 2001, has been a key figure as Dell has expanded its business. On the enterprise side, this includes Omega Replica Watches a partnership with EMC Corp7, to sell storage systems, as well as printers and network switches. On the consumer side, Dell now is selling flat-screen televisions and music devices. In the highly competitive server space, Dell has grown to No. 4 worldwide, with 76 percent of the worldwide market, trailing IBM, Hewlett-Packard Co. "and Sun Microsystems Inc.

Dell spokesman T. R. Reid said that despite the change in titles, the company's " two-in-a-box" management style10 won't change. Rollins will continue directing the day-to-day global operations, and Dell will continue directing the company's strategic path.

He also said that any inference that Michael Dell will be stepping back from the operations of the company are wrong" , the title change had nothing to do with the trend in U. S. corporations to separate the titles of chairman and CEO as move toward more sound corporate governance.

There also seemed to be little concern among Dell's customers. Mike Terni, director of IT operations, at Stahl's Inc.—a Dell customer for about seven years-said that as long as Michael Dell continues to play a key role with the company, he had few worries. He said, "I think if Michael Dell was stepping out altogether, then I would have some concerns,12but as long as he's staying involved, the quality and service should continue. "

Gordon Huff, an analyst with Illuminate Inc. , said Michael Dell's decision to step down as CEO at a time when his company is financially strong is a healthy sign for the company. "This is a fairly common pattern, where founders who in many cases made their companies quite successful move on to other roles, where they have fewer day-to-day responsibilities," said Haff, in Nashua, N. H. "In general, it speaks well of a company when a founder is willing to step back a bit. "

Dell, the second-largest PC maker behind HP, continues to see its financial numbers grow. Officials in February said the fourth quarter in 2003 saw the company hit record numbers in product shipments, revenue and income. The company earned $749 million on sales Audemar Piguet Replica of $11.5 billion, buoyed by stronger-than-expected sales of servers, storage devices and printers.

"In a way, the challenge Dell has—and it's a good challenge to have—is that they have been having great success," Huff said. Now the company needs to look five years down the road to see how it can keep that success going.13 A key initiative will be to grow its strategy in the consumer electronics space, where Dell already is making a push with such products as digital cameras and PDAs. Hon. the enterprise side, Dell needs to figure out how to keep its momentum in hardware going forward when it relies so much on partners for soft-ware.

"In the enterprise, there is a big push for virtualization and automation ... in the software stack," Huff said. "How can a company like Dell, which is essentially a box maker, play in the space against the likes of IBM and Sun, who have a lot of [ research and development] in software?"