Robert Pogson

One man, closing all the windows.

Daily Archives / Tuesday, February 5, 2013

  • Feb 05 / 2013
  • 5

Tradeoff: Desktop OS v Office Suite

"heard this weekend in #Brussels that #Microsoft might release a native #Linux version of #Office in 2014."

see [Phoronix] Microsoft Looking At Office For Linux In 2014.

What it means is that M$ is willing to sell expensive licences/subscriptions of its office suite to addicts who plan to leave M$’s desktop OS rather than let them be lost forever. Since the chief cost of migrating to GNU/Linux may well be escaping the office suite, this could result in less net blood-loss to M$’s cash-cows.

  • Feb 05 / 2013
  • 7

Leveraged Buyout of Dell Planned

Well, M$ is just going to be a creditor, not a shareholder in the new Dell. That’s good unless Dell dies under the burden of debt. If Michael Dell can revitalize the company with enough growth to pay back the debts, Dell can finally be free of “conventional wisdom” that locks Dell into Wintel.

“The transaction will be financed through a combination of cash and equity from Michael Dell, cash from investment funds affiliated with Silver Lake, cash invested by Michael Dell’s investment firm, MSD Capital, and a $2 billion loan from Microsoft (MSFT_). The deal will also be financed by a rollover of existing debt, and debt financing from Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.”

see Dell to Go Private in $24.4 Billion Deal (Update1) – TheStreet.

This is another form of diversification for M$ and it should not interfere with M$’s relationships with other OEMs. If I were Dell, I would pay back M$ ASAP before M$ sets the hook.

See also The Register’s Take and an astute comment there …