Dell continues it business transformation to move away from being just a PC maker by setting up a new software group and hiring ex-CA Technologies CEO John Swainson to head up the division.
In a statement Thursday, the Texas-based company announced it had hired Swainson as President of its software group and he will assume the position on Mar. 5, 2012. He was most recently the senior advisor to Silver Lake, a global private equity firm. The newly-formed business unit will build on Dell's software capabilities and "provide greater innovation and organizational support to create a more competitive position in delivering end-to-end IT solutions to customers", the company said.
On the appointment of Swainson, Dell Chairman and CEO Michael Dell said: "John is an outstanding leader with an unparalleled record of achievement. He brings to Dell extensive experience in leading and growing software businesses, unique expertise in managing complex organizations, and a passion for listening to and serving customers."
He added that combining hardware, software and services will give it the ability to serve the largest possible group of customers within the US$3 trillion technology industry.
"The addition of software, both within the software group and across all of Dell, will help catalyze our transformation. As software will be a part of all of our products and services, the group's success will be largely measured by the success of Dell overall," the CEO stated.
Dell's push into software is not surprising, considering that its enterprise business has grown while global PC sales drop. Last May, the company reported a 23 percent drop in its consumer PC revenue for its first fiscal quarter of 2012, whereas its enterprise business grew and accounted for 20 percent of its US$15 billion revenue. It also missed its third-quarter estimates after walking away from US$2 billion in potential PC sales to focus on more profitable business, a November 2011 report showed.