First attempt (2000)

In 1998 Ralph Nader asked Dell (and five other major OEMs) to offer alternate operating systems to Microsoft Windows, specifically including Linux, for which "there is clearly a growing interest"^[18][19] Possibly coincidentally, Dell started offering Linux notebook systems which "cost no more than their Windows 98 counterparts" in 2000,^[20] and soon expanded, with Dell becoming "the first major manufacturer to offer Linux across its full product line"^[21] However, by early 2001 Dell had "disbanded its Linux business unit."^[22]

The reason(s) for such a quick reversal remain the subject of debate. Court documents accused Microsoft of coercing OEMs to drop Linux:

Microsoft executive Joachim Kempin described his plan of retaliation and coercion to shut down competition from Linux: "I am thinking of hitting the OEM harder than in the past with anti-Linux actions" and will "further try to restrict source code deliveries where possible and be less gracious when interpreting agreements — again without being obvious about it," continuing "this will be a delicate dance"^[23]

While in a 2003 interview Michael Dell denied that Microsoft pressured Dell Inc. into doing an about-face with regard to desktop Linux, citing a lack of sales: "unfortunately the desktop Linux market didn't develop in volume. It's more of a server opportunity" but adding: "We continue to offer Linux on the desktop and there is nothing else to say."^[24] However, a 2004 report noted that Dell no longer offered pre-installed desktop Linux:

So what does it mean "factory installed Linux"? If you want Dell to install Linux for you, first add on $119. But here is the annoying part. They won't send you a computer with Linux pre-installed. They sell you the computer and the boxes of software on the side, and then they make an appointment to send you someone who comes to your house or business and installs it there.^[25]

[edit] Ubuntu on Dell systems

On February 26, 2007 Dell announced that it had commenced a program to sell and distribute a range of computers with pre-installed Linux distributions as an alternative to Microsoft Windows. Dell indicated that Novell's SUSE Linux would appear first.^[26] However, Dell on February 27, 2007 announced that its previous announcement related to certifying the hardware as ready to work with Novell SUSE Linux and that it (Dell) had no plans to sell systems pre-installed with Linux in the near future.^[27] On March 28, 2007, Dell announced that it would begin shipping some desktops and laptops with Linux pre-installed, although it did not specify which distribution of Linux or which hardware would lead.^[28] On April 18, 2007 a report appeared suggesting that Michael Dell used Ubuntu on one of his home systems.^[29] On May 1, 2007, Dell announced it would ship the Ubuntu Linux distribution.^[30] On May 24, 2007, Dell started selling models with Ubuntu Linux 7.04 pre-installed: a laptop, a budget computer, and a high-end PC.^[31]

On June 27, 2007, Dell announced on its Direct2Dell blog that it planned to offer more pre-loaded systems (the new Dell Inspiron desktops and laptops). After the IdeaStorm site supported extending the bundles beyond the US market, Dell later announced more international marketing.^[32] On August 7, 2007, Dell officially announced that it would offer one notebook and one desktop in the UK, France and Germany with Ubuntu "pre-installed". At LinuxWorld 2007 Dell announced plans to provide Novell's SUSE Linux Enterprise Desktop on selected models in China, "factory-installed".^[33] On November 30, 2007 Dell reported shipping 40,000 Ubuntu PCs.^[34] On January 24, 2008 Dell in Germany, Spain, UK and France launched a second laptop, a XPS M1330 with Ubuntu 7.10, for 849 euro or GBP 599 upwards.^[35] On February 18, 2008, Dell announced that the Inspiron 1525 would have Ubuntu as an optional operating system.^{[citation needed]} On February 22, 2008 Dell announced plans to sell Ubuntu in Canada and in Latin America^[36] From September 16, 2008, Dell has shipped both Dell Ubuntu Netbook Remix and Windows XP Home versions of the Inspiron Mini 9 and the Inspiron Mini 12. As of 2009^[update] Dell ships the Inspiron Mini 9 and the Inspiron Mini 12 laptops with Ubuntu version 8.04.^{[citation needed]}

[edit] Personnel

On January 31, 2007 Michael Dell returned to the company as CEO. As chairman of the board, Mr. Dell had had significant input into the company's operations during Rollins' years as CEO. However with the return of Michael Dell as CEO, the company saw immediate changes in operations, the exodus of many senior vice-presidents and new personnel brought in from outside the company.

Departures announced include:

• Kevin Rollins, CEO^[37]
• James Schneider, CFO^[37]
• John Medica, senior vice president, consumer products^[38]
• Joe Marengi, senior vice president, Americas^[38]
• John Hamlin, senior vice president, worldwide online operations^[39]
• Paul McKinnon, senior vice president, human resources^[38]
• Rosenda Parra, senior vice president/general manager, home and small business group^[40]
• Glenn E. Neland, senior vice president, procurement^[41]

Additions announced include:

• Michael Dell, CEO and co-Chairman of the Board (previously Chairman of the Board)
• Don Carty, CFO and co-Chairman of the Board (previously Board member)
• Michael R. Cannon, former CEO of Solectron, as President, Global Operations^[42]
• Ron Garriques, who formerly headed Motorola's mobile phone unit, as President, Global Consumer Group^[43]
• Stephen F. Schuckenbrock, Senior Vice President, Global Services^[41]

Mr. Dell announced a number of initiatives and plans (part of the "Dell 2.0" initiative) to improve the company's financial performance. These include:

• elimination of 2006 bonuses for employees with some discretionary awards
• reduction in the number of managers reporting directly to Mr. Dell from 20 to 12
• in a noted departure from previous years, "build, partner, and buy" to increase services capabilities
• reduction of "bureaucracy"

On April 23, 2008, Dell announced the closure of one of its biggest Canadian call-centers in Kanata, Ontario — terminating approximately 1100 employees, with 500 of those redundancies effective on the spot, and with the official closure of the center scheduled for the summer. The call-center had opened in 2006 after the city of Ottawa won a bid to host it. Less than a year later, Dell Inc planned to double its workforce to nearly 3,000 workers and to add a new building. Journalists cited a high Canadian dollar and suggested high pay-rates as among the reasons for the cuts.^[44] The company had also announced the shutdown of its Edmonton, Alberta office, losing 900 jobs. In total, Dell announced the ending of about 8,800 jobs in 2007-2008 — 10% of its workforce.^[45] On January 8, 2009 Dell announced the closure of its manufacturing plant in Limerick, Ireland with the loss of 1,900 jobs and the transfer of production to its plant in Poland.