Dell first made its name through a different way of selling computers. Michael Dell built a direct-order business around PCs configured for customers rather than chosen from store shelves. That model helped the business scale, but it would not remain its only source of growth.
Today’s Dell Technologies supplies PCs, storage and servers for artificial intelligence. Between those businesses lie decades of fierce PC competition, changes in ownership and a major expansion into enterprise infrastructure. The journey also created an important corporate distinction: the present Dell Technologies parent was formed long after Michael Dell established the original business.
A Quick Look at the History of Dell Technologies
Company History Summary
The original Dell business began in Austin in 1984 as PC’s Limited. Later known as Dell Computer Corporation and Dell Inc., it grew through direct selling, international expansion and online ordering, reaching the top of worldwide PC shipments in the first quarter of 2001.
Competition pushed Dell’s long-established PC model into a more difficult era. A 2013 buyout created a privately held parent, renamed Dell Technologies in 2016, which acquired EMC that year. Later share restructuring and the VMware spin-off reshaped the group again. By 2026, AI-optimized servers were a major growth business.
Company Snapshot
Business origin: 1984; the present parent corporation originated as Denali Holding Inc. in 2013.
Founder of the original business: Michael Dell.
Original business name: PC’s Limited.
Founding location: Austin, Texas.
Headquarters: Round Rock, Texas.
Current corporate parent: Dell Technologies Inc., incorporated in Texas as of July 1, 2026.
Main businesses: Infrastructure Solutions Group (servers, networking, storage and AI infrastructure) and Client Solutions Group (personal computers, workstations and related products and services).
Leadership: Michael Dell, chairman and chief executive officer.
Stock-market listing: NYSE: DELL (Class C shares).
Historically known for: Direct sales of configurable PCs and a later expansion into enterprise technology.
How a Direct-Sales PC Business Took Shape
Michael Dell was a student at the University of Texas at Austin when he started PC’s Limited in 1984. He assembled and sold IBM-compatible computers directly to customers, offering configurations chosen during ordering. In its account of those early days, Dell says he started with $1,000.
Most established PC manufacturers relied heavily on distributors and stores. PC’s Limited instead built computers to order, avoiding some of the inventory costs associated with completed machines waiting on retailers’ shelves. Direct contact with buyers also helped inform what the business assembled and sold.
The business adopted the name Dell Computer Corporation, which was incorporated under that name in 1987. That year it opened an operation in the United Kingdom, and in 1988 the company went public. Direct selling now supported a manufacturer with an international presence and public shareholders.
Growth exposed limits as well as advantages. By 1993, notebook-related write-downs and falling PC prices had damaged profitability, and the company reorganized parts of its operations. Another test came from retail distribution. Dell Computer had tried selling through stores, but in 1994 it withdrew from those arrangements. Explaining the retail retreat, Michael Dell told The Washington Post: “For us it has been losing money for some time.”
The retail retreat gave Dell Computer a clearer distribution focus just as international expansion and, soon, online ordering offered new ways to reach customers directly.
Taking the Direct Model Onto the Internet
Internet ordering gave Dell Computer another direct channel alongside telephone sales. The company began selling computers online in 1996 and later reported that online revenue surpassed $1 million a day within about six months. The website extended rather than replaced the model Michael Dell had built.
Its expanding scale appeared in independent shipment figures. In the first quarter of 2001, Gartner/Dataquest and IDC ranked Dell Computer narrowly ahead of Compaq in worldwide PC shipments. The company that began with custom-built systems had reached the top of an important global PC measure.
By then the product portfolio also included servers, storage and services. In 2003, Dell Computer Corporation changed its name to Dell Inc. The board said the older name no longer reflected the range of what it sold. PCs remained a central business, but they were no longer the whole portfolio.
The PC Market Changes—and Dell Faces Setbacks
The direct model’s success did not keep Dell Inc. at the top of PC shipments indefinitely. As notebooks and consumer buying patterns became more important, competition intensified. Michael Dell stepped down as chief executive in 2004 while remaining chairman; Kevin Rollins became CEO.
In the third quarter of 2006, Gartner reported that Hewlett-Packard had edged past Dell in worldwide PC shipments, 16.3% to 16.1%. IDC saw the two companies as effectively tied. Either measure reflected a far tighter contest than Dell’s earlier lead had suggested.
The same year brought a significant product-safety issue. In August, Dell Inc. voluntarily recalled approximately 2.7 million notebook battery packs in the United States and another 1.5 million outside the country. Sony had manufactured the battery cells, which could overheat. The US Consumer Product Safety Commission documented reports of property damage but no injuries in its Dell recall notice.
On January 31, 2007, Dell Inc.’s board returned Michael Dell to the CEO position, replacing Rollins. His return came during a period of intense competitive and product-safety pressure.
Regulatory issues from earlier years also emerged. In 2010, the US Securities and Exchange Commission charged Dell Inc. and certain executives over disclosure and accounting matters from fiscal 2002 through 2006, including alleged failures to disclose Intel exclusivity payments. Dell Inc. agreed to pay a $100 million penalty, while Michael Dell and Kevin Rollins agreed to penalties of $4 million each. The individuals settled without admitting or denying the SEC’s allegations.
Beyond PCs: Services and the 2013 Buyout
Personal computers remained central, but Dell Inc.’s portfolio was moving further into business technology. In November 2009, it acquired Perot Systems for approximately $3.9 billion, adding IT services operations alongside hardware.
By 2013, the PC industry was facing another change: demand for traditional computers was under pressure as smartphones and tablets gained ground. Against that backdrop, Michael Dell and investment firm Silver Lake backed a leveraged buyout. Shareholders debated the price and process, with opposition that included investor Carl Icahn. The deal closed on October 29, 2013, at a reported value of about $24.9 billion.
Denali Holding Inc., formed in January 2013, was the legal acquirer of Dell Inc. The operating company left public trading and continued under a privately controlled parent. In a statement reported by Reuters, Michael Dell said: “Today, Dell enters an exciting new chapter as a private enterprise.”
Under that new ownership structure, the next major change would reach well beyond the PC market.
The EMC Deal Creates a Different Kind of Dell
The largest structural change of the next era came from enterprise technology rather than consumer PCs. EMC Corporation was established in storage and related infrastructure businesses and held a controlling interest in virtualization software company VMware. The announced Dell–EMC combination offered a way to assemble a broader portfolio of computing, storage and related enterprise products under common ownership.
Denali Holding Inc. changed its legal name to Dell Technologies Inc. in August 2016. On September 7, the renamed parent completed its acquisition of EMC Corporation in a combination valued at more than $60 billion under commonly reported measures. The corporate merger brought EMC’s storage businesses and its controlling VMware interest into the group.
Dell Technologies Inc. was the parent company formed for the 2013 buyout, not Dell Inc. with a new name. It now controlled both the Dell operating business and EMC, including the VMware interest acquired through EMC. The distinction matters because each business brought a separate history and portfolio.
The combination joined Dell’s PC and server operations with EMC’s storage and enterprise infrastructure businesses, but it also required substantial financing. Dell filings recorded approximately $45.9 billion in new borrowing associated with the acquisition. The group later divested parts of its services and software operations and used some proceeds to repay debt.
Returning to the Stock Market and Separating VMware
After the EMC transaction, Dell Technologies had a complicated share structure that included Class V tracking stock tied to economic exposure to VMware. The parent returned to regular public stock trading on December 28, 2018, through a transaction in which Class V shareholders received cash and/or Class C shares. This was a capital-structure exchange, not a conventional initial public offering of a newly founded company.
The VMware relationship changed again in 2021. On November 1, Dell Technologies distributed its approximately 81% VMware stake to Dell Technologies shareholders in a spin-off. VMware became a separately owned company rather than a Dell Technologies subsidiary, although the businesses initially described a continuing commercial relationship.
These changes left Dell Technologies as a publicly traded group focused on its remaining client-device and infrastructure businesses, without its former controlling interest in VMware.
AI Infrastructure Becomes a Major Growth Business
The demand for systems that train and run AI models created a new market for Dell Technologies’ existing server expertise. In 2024, the company introduced its Dell AI Factory with NVIDIA initiative, combining computing infrastructure and related technologies for enterprise AI deployments.
While building out that infrastructure business, the group also narrowed part of its portfolio: in February 2025, its Secureworks cybersecurity interest was sold to Sophos.
For fiscal 2026, ended January 30, 2026, Dell Technologies reported $113.538 billion in consolidated revenue. AI-optimized server revenue reached $24.683 billion, up from $9.286 billion in fiscal 2025. The growing server business had become an increasingly important part of Dell’s sales mix.
For the three months ended July 31, 2026—the second quarter of fiscal 2027—consolidated revenue reached $46.971 billion, 58% above the year-earlier quarter. Infrastructure Solutions Group revenue rose 89%, with Dell citing strong AI-server demand; Client Solutions Group revenue also grew. Dell’s filings also reported margin pressure associated with the changing AI-server sales mix.
In September 2026, Dell raised its fiscal 2027 guidance to $192 billion in total revenue and $74 billion in AI-server revenue. Both were forecasts rather than completed annual results.
Where Dell Technologies Stands in 2026
As of October 12, 2026, Dell Technologies Inc. is a publicly traded parent company headquartered in Round Rock, Texas, with Michael Dell serving as chairman and CEO. Its main reporting businesses are Infrastructure Solutions Group—servers, storage and networking—and Client Solutions Group, covering PCs, workstations and related offerings. The parent is publicly listed, but its voting control is concentrated: a filing reported that Michael Dell-related and Silver Lake-related shareholders held approximately 91.7% of voting power as of March 9, 2026.
The parent also changed its state of incorporation from Delaware to Texas effective July 1, 2026. The conversion maintained the same corporation; it did not move a previously Delaware-based headquarters to Texas or relocate operations by virtue of the filing.
From direct-order PCs to enterprise infrastructure, Dell’s development has involved changes in how it sells, what it builds and which businesses it controls. The AI-server expansion is the latest documented phase of that history, alongside a substantial continuing PC business.
Timeline
These dates trace the main steps in Dell’s development, from the original PC business to the current corporate group.
1984
Michael Dell starts PC’s Limited in Austin, Texas, selling IBM-compatible PCs directly to customers.
1987–1988
Dell Computer Corporation is incorporated under that name, establishes a UK operation and completes its initial public offering in 1988.
1994
Dell Computer withdraws from retail-store partnerships after the channel generates losses, according to Michael Dell.
1996
Dell Computer begins selling computers online.
First quarter of 2001
Dell Computer leads worldwide PC unit shipments in Gartner/Dataquest and IDC surveys.
2003
Dell Computer Corporation changes its name to Dell Inc., reflecting a broader technology portfolio.
2006–2007
HP narrowly overtakes Dell in one worldwide PC shipment survey; Dell Inc. recalls notebook batteries containing Sony cells. Michael Dell returns as chief executive in January 2007.
2009–2010
Dell Inc. acquires Perot Systems for approximately $3.9 billion. In 2010, Dell and certain executives reach settlements following SEC disclosure and accounting charges.
October 29, 2013
Denali Holding Inc. completes the buyout of Dell Inc., taking the operating company private.
2016
Denali is renamed Dell Technologies Inc. in August; the parent completes its acquisition of EMC Corporation on September 7.
December 28, 2018
Dell Technologies Class C shares begin regular public trading on the NYSE after the Class V exchange.
November 1, 2021
Dell Technologies spins off its controlling VMware stake to shareholders.
2024–2025
Dell introduces its AI Factory with NVIDIA initiative in 2024, and the group completes the Secureworks divestiture in February 2025.
2026
Dell Technologies reports strong AI-server revenue for fiscal 2026, converts its incorporation from Delaware to Texas in July and reports substantial second-quarter fiscal 2027 revenue growth.
FAQs
Question: Is Dell the same company as Dell Technologies?
Answer: Dell is the name associated with the computing business founded in 1984. Dell Inc. is an operating company within the group, while Dell Technologies Inc. is the parent corporation that began as Denali Holding Inc. in 2013 and adopted its current name in 2016.
Question: Who founded Dell, and what was it originally called?
Answer: Michael Dell started the business in Austin, Texas, in 1984 under the name PC’s Limited. The later operating-company lineage includes Dell Computer Corporation and Dell Inc.
Question: Why did Dell Computer change its name to Dell Inc.?
Answer: The name changed in 2003. The board’s stated reason was that “Dell Computer Corporation” no longer adequately reflected the company’s growing server, storage and services businesses.
Question: When did Dell go private, and is it publicly traded today?
Answer: Dell Inc. was acquired by privately controlled Denali Holding Inc. in October 2013. Dell Technologies Inc. later brought its Class C shares into regular NYSE trading in December 2018 through a Class V stock exchange. Today its Class C shares trade as DELL.
Question: Does Dell Technologies still own VMware?
Answer: No. The Dell Technologies group obtained control of VMware through its acquisition of EMC in 2016, then distributed its roughly 81% VMware stake to Dell Technologies shareholders in a 2021 spin-off.
Question: Did Dell relocate to Texas in 2026?
Answer: No operational relocation followed from the July 2026 change. Dell Technologies converted its legal state of incorporation from Delaware to Texas; its headquarters was already in Round Rock, Texas.
Interviews & Firsthand Resources
Michael Dell on Direct Selling and Virtual Integration
In a 1998 Harvard Business Review interview with Joan Magretta, Michael Dell discussed the direct model and how customer orders, inventory management and supplier relationships worked together. The bibliographic record and abstract introduce his account of the company’s early business system, while the linked page provides a record of the interview rather than its complete text.
Michael Dell on the Buyout, EMC and the AI Era
Nicolai Tangen interviewed Michael Dell for a Norges Bank Investment Management podcast released in December 2024. Their discussion ranges from the original computer business to the 2013 privatization, the EMC transaction and AI. It offers a founder’s retrospective account of several transitions covered in this history.
Sources
- Dell: Company timeline: How we got here
- Texas State Historical Association: Dell Computer Corporation: historical account
- The Washington Post: Dell withdraws from retail stores (1994)
- Computerworld: Dell leads PC shipments in Q1 2001, HP and Dell worldwide PC rankings in 2006
- US Consumer Product Safety Commission: Dell notebook battery recall notice (2006)
- US Securities and Exchange Commission: Dell and executives: 2010 enforcement announcement
- Dell and SEC filings: early company and take-private: 2003 name-change proxy, 2007 Michael Dell CEO announcement, Perot Systems acquisition: FY2011 filing, Denali Holding prospectus
- Dell Technologies and SEC filings: EMC and ownership restructuring: 2016 parent name-change filing, 2016 EMC acquisition quarterly filing, 2016 merger completion announcement, 2018 Class V transaction filing, 2021 VMware spin-off filing
- Dell Technologies and SEC filings: recent operations: 2025 Secureworks divestiture filing, FY2026 annual report, 2026 Texas corporate conversion, Q2 FY2027 quarterly report
- Reuters: 2013 Dell buyout (Reuters, syndicated by Yahoo Finance), September 2026 AI-demand results and forecasts
- Harvard Business Review / PubMed: 1998 Michael Dell interview record
- Norges Bank Investment Management: 2024 Michael Dell interview podcast