Could Vista Save Dell?

Could Bill Gates help Michael Dell turn around his ailing company? Financial analysts say Microsoft’s new Vista operating system may ignite a PC revival.

Wall Street analysts and industry onlookers seemed to react favorably to news Dell would replace CEO Kevin Rollins who resigned yesterday. The executive change followed a string of bad news, capped by yesterday’s word the company expects lower revenues and earnings for fiscal year 2007.

Merrill Lynch analyst Richard Farmer in a report said handing the reigns back to Dell indicates “serious change” is in store. Farmer believed Dell will spur new strategies, including partnerships, mergers and acquisitions and revenue models. The new CEO will likely bring in new management, a tactic used by Dell in the past, Gartner analyst Charles Smulder told internetnews.com.

And ABI analyst Dan Schatt said Dell is the archetypical entrepreneur without the formal corporate training. Like Farmer, Schatt said the computer maker must make a dramatic shift.

Full article: internetnews.com

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