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Dell Acquisition of MessageOne: A Strategic Move

As pointed out in Network News, Dell's acquisition of MessageOne is not controversial. Michael Dell was brought back to Dell to build its financial and strategic viability. Viability in this sense is a euphemism for cost cutting and reinvestment.

From Reuters:

"We are not satisfied with the current state of affairs and are on a mission to fix it," said Dell, 43. "Every area of the company is being pursued" for cost cuts.

Dell has repeatedly said the firm is pursuing emerging technologies. Emerging technologies that can generate quick win and strategic revenue gains is a key initiative -- which can only be pursued by freeing up money. From the same Reuters article:

Dell Inc plans to cut more jobs than the 8,800 it had targeted as it seeks to reduce expenses by at least $3 billion annually by 2011

While primarily known as a hardware provider, Dell is not new to professional services and their recent SaaS acquisitions merely extends their services business unit.

Michael Dell returned to Dell to refresh internal culture, drive strategic initiatives and, ultimately, keep shareholders happy. The MessageOne acquisition is merely a spoke in the wheel of initiatives.

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