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Walker was also instrumental in recruiting members to the board of directors when the company went public in Walker retired in due to health, and Michael Dell hired Morton Meyerson, former CEO and president of Electronic Data Systems to transform the company from a fast-growing medium-sized firm into a billion-dollar enterprise.
Bain consultant Kevin Rollins persuaded Michael Dell to pull out of these deals, believing they would be money losers in the long run. Growth in the s and early s[ edit ] Originally, Dell did not emphasize the consumer market, due to the higher costs and unacceptably low-profit margins in selling to individuals and households; this changed when the company's Internet site took off in and While the industry's average selling price to individuals was going down, Dell's was going up, as second- and third-time computer buyers who wanted powerful computers with multiple features and did not need much technical support were choosing Dell.
Dell found an opportunity among PC-savvy individuals who liked the convenience of buying direct, customizing their PC to their means, and having it delivered in days.
In earlyDell created an internal sales and marketing group dedicated to serving the home market and introduced a product line designed especially for individual users. Dell grew the fastest in the early s. InDell began selling computers through its website. In the mids, Dell expanded beyond desktop computers and laptops by selling servers, starting with low-end servers.
The major three providers of servers at the time were IBM, Hewlett Packard, and Compaq, many of which were based on proprietary technology, such as IBM's Power4 microprocessors or various proprietary versions of the Unix operating system.
Dell's new PowerEdge servers did not require a major investment in proprietary technologies, as they ran Microsoft Windows NT on Intel chips, and could be built cheaper than its competitors.