Dell Inc. - COATcoat.ncf.ca/P4C/66/24.pdffounder, chairman and CEO, Michael Saul Dell, said he was...

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Press for Conversion! (Issue # 66) Spring 2012 24 Dell Inc Dell Inc Dell Inc Dell Inc Dell Inc. computers (PCs). Globes reported that this three-year contract was “financed from US military aid to Israel.” The paper also noted that the IDF tender was “thought to be the largest of its kind in Israel and is divided into three categories: laptops, PCs and servers.” Another Israeli paper, Haaretz, confirmed this as “one of the Israeli army’s biggest computer tenders,” and said “the army is paying between $600 to $700 per unit” making “the contract worth about $30 million to $35 million to Dell Israel.” It noted that Dell had also won a separate contract “to supply portable computers to the Israeli government.” Globes’ also mentioned this other contract saying Dell would also supply 2,500 PCs to various un- specified government offices. In 2009, Michael Dell accepted another invitation to Israel, this time from the country’s President, Shimon Peres. Dell had met Peres earlier that year at the global power elite’s “World Economic Forum” in Davos, Switzer- land. At that time, Peres suggested to Dell “that he should [start] a business development center in Jerusalem” and Dell did just that. In early 2010, Dell Inc. paid US$12 million for Exanet, an Israeli data-storage systems firm. This allowed Dell to open its Israeli R&D center in early 2011. Exanet’s key executives are closely tied to several large companies that supply Israel’s military: Cofounder/CEO, Giora Yaron, was on Rafael’s advisory board. (See “State-owned Israeli War Indus- tries,” pp.48-49.) He is also an Am- docs director. (See pp.5-6.) CEO/President, Mark Weiner, was in various executive positions at NetApp. (See table “CPP invest- ments,” p.53.) President of Exanet Americas, Bruce Chumley, held key posts at EMC and Hitachi Data Systems. (See pp.30-31 and p.38.) Chief Financial Officer, Michael Berger, filled “various financial and managerial roles” at Motorola Com- munications Israel. (See table “CPP investments,” p.53.) References Dell Inc. finance.yahoo.com/q/is?s=Dell&annual Michael Dell www.jewishvirtuallibrary.org/jsource/biography/ Michael_Dell.html Connecting Technology, Michael Dell Key- note Address, May 15, 2001. www.dell.com/downloads/global/corporate/speeches/ msd/2001_05_15_connecting_tech.pdf Michael Dell Remarks, Air Force IT Con- ference, August 27, 2002. www.dell.com/downloads/global/corporate/speeches/ msd/2002_08_27_USAF_IT.pdf Michael Dell Remarks, US Army DOIM Conference, September 1, 2004. www.dell.com/downloads/global/corporate/speeches/ msd/2004_09_01_msd_army.pdf Top 100 Defense Contractors www.govexec.com “Michael Dell to Visit Israel,” Globes, Sep- tember 26, 1999. www.globes.co.il/serveen/globes/docview.asp? did=378369 “The computer and Internet markets,” Israel High-Tech & Investment Report, April 2006. www.ishitech.co.il/0406ar3.htm HP, Dell win govt, IDF computing tenders, Globes, May 23, 2006. www.globes.co.il/serveen/globes/docview.asp?did= 1000094945 Guy Grimland, “Dell day: Won Israeli army tender too,” Haaretz, May 24, 2006. www.haaretz.com/themarker/economy-finance/dell-day- won-israeli-army-tender-too-1.188474 Shmulik Shelah, “Michael Dell in private visit to Israel,” Globes, June 22, 2009. www.globes.co.il/serveen/globes/docview.asp?did= 1000460724 “Dell Purchases Israeli Data Firm,” Globes, February 8, 2010. www.globes.co.il/serveen/globes/docview.asp?did= 1000537300 Mark Weiner investing.businessweek.com/research/stocks/private/ person.asp?personId=30560699 Canada P Canada P Canada P Canada P Canada P ension Plan ension Plan ension Plan ension Plan ension Plan 20 20 20 20 20 1 1 1 1 Inv 1 Inv 1 Inv 1 Inv 1 Inv estment estment estment estment estment $19 million $19 million $19 million $19 million $19 million D ell, the world’s third largest computer company, is a US multinational with assets of US$38 billion. A significant amount of that wealth comes from military sales. Between 2000 and 2009 alone, Dell re- ceived US$6.2 billion in US military contracts. During each of those ten years, Dell was among the Pentagon’s top 100 suppliers and, overall, placed 39th for the whole decade. In his speech to a US Navy tech- nology conference in 2001, company founder, chairman and CEO, Michael Saul Dell, said he was “very proud” the “Navy is one of Dell’s largest custom- ers.” At a US Air Force technology con- ference in 2002, he said “the Air Force has become one of our largest custom- ers.” When introducing Dell at a US Army technology event in 2004, Gen- eral Steven Boutelle said there are “soldiers all over the Middle East that are Dell employees functioning in reserve units. They have contrac- tors in the Middle East. They are supporting us throughout Baghdad, Iraq and the rest of the world.” Dell’s speech then noted that “[t]his year, the Army is going to be one of our largest customers in the world.” Dell also supplies US allies and has had a subsidiary in Israel since 1999. That year, Michael Dell, ac- cepted an invitation to visit Israel from the director-general of Israel’s Indus- trial Cooperation Authority. The Ameri- can-Israeli Cooperative Enterprise has noted that Dell was “born…to a wealthy Jewish family in Houston, Texas,” and “is one of the richest peo- ple in the world...with a net worth of $14.6 billion in 2011.” By 2005, Dell was the third larg- est supplier of PCs and laptops in Is- rael. This was thanks, in part, to one of Dell’s largest buyers, the Israel Defense Forces (IDF). In 2006, the IDF con- tracted Dell to supply 50,000 personal

Transcript of Dell Inc. - COATcoat.ncf.ca/P4C/66/24.pdffounder, chairman and CEO, Michael Saul Dell, said he was...

Page 1: Dell Inc. - COATcoat.ncf.ca/P4C/66/24.pdffounder, chairman and CEO, Michael Saul Dell, said he was “very proud” the “Navy is one of Dell’s largest custom-ers.” At a US Air

Press for Conversion! (Issue # 66) Spring 201224

Dell IncDell IncDell IncDell IncDell Inc..... computers (PCs). Globes reportedthat this three-year contract was“financed from US military aid toIsrael.” The paper also noted thatthe IDF tender was “thought to bethe largest of its kind in Israel andis divided into three categories:laptops, PCs and servers.”

Another Israeli paper,Haaretz, confirmed this as “oneof the Israeli army’s biggestcomputer tenders,”and said “thearmy is payingbetween $600 to$700 per unit” making “thecontract worth about $30 million to $35million to Dell Israel.” It noted that Dellhad also won a separate contract “tosupply portable computers to the Israeligovernment.” Globes’ also mentionedthis other contract saying Dell wouldalso supply 2,500 PCs to various un-specified government offices.

In 2009, Michael Dell acceptedanother invitation to Israel, this timefrom the country’s President, ShimonPeres. Dell had met Peres earlier thatyear at the global power elite’s “WorldEconomic Forum” in Davos, Switzer-land. At that time, Peres suggested toDell “that he should [start] a businessdevelopment center in Jerusalem” andDell did just that.

In early 2010, Dell Inc. paidUS$12 million for Exanet, an Israelidata-storage systems firm. This allowedDell to open its Israeli R&D center inearly 2011. Exanet’s key executives areclosely tied to several large companiesthat supply Israel’s military:

Cofounder/CEO, Giora Yaron, wason Rafael’s advisory board. (See“State-owned Israeli War Indus-tries,” pp.48-49.) He is also an Am-docs director. (See pp.5-6.)CEO/President, Mark Weiner, wasin various executive positions atNetApp. (See table “CPP invest-ments,” p.53.)President of Exanet Americas,Bruce Chumley, held key posts atEMC and Hitachi Data Systems.(See pp.30-31 and p.38.)Chief Financial Officer, MichaelBerger, filled “various financial andmanagerial roles” at Motorola Com-munications Israel. (See table “CPPinvestments,” p.53.)

ReferencesDell Inc.finance.yahoo.com/q/is?s=Dell&annual

Michael Dellwww.jewishvirtuallibrary.org/jsource/biography/Michael_Dell.html

Connecting Technology, Michael Dell Key-note Address, May 15, 2001.www.dell.com/downloads/global/corporate/speeches/msd/2001_05_15_connecting_tech.pdf

Michael Dell Remarks, Air Force IT Con-ference, August 27, 2002.www.dell.com/downloads/global/corporate/speeches/msd/2002_08_27_USAF_IT.pdf

Michael Dell Remarks, US Army DOIMConference, September 1, 2004.www.dell.com/downloads/global/corporate/speeches/msd/2004_09_01_msd_army.pdf

Top 100 Defense Contractorswww.govexec.com

“Michael Dell to Visit Israel,” Globes, Sep-tember 26, 1999.www.globes.co.il/serveen/globes/docview.asp?did=378369

“The computer and Internet markets,” IsraelHigh-Tech & Investment Report, April 2006.www.ishitech.co.il/0406ar3.htm

HP, Dell win govt, IDF computing tenders,Globes, May 23, 2006.www.globes.co.il/serveen/globes/docview.asp?did=1000094945

Guy Grimland, “Dell day: Won Israeli armytender too,” Haaretz, May 24, 2006.www.haaretz.com/themarker/economy-finance/dell-day-won-israeli-army-tender-too-1.188474

Shmulik Shelah, “Michael Dell in privatevisit to Israel,” Globes, June 22, 2009.www.globes.co.il/serveen/globes/docview.asp?did=1000460724

“Dell Purchases Israeli Data Firm,” Globes,February 8, 2010.www.globes.co.il/serveen/globes/docview.asp?did=1000537300

Mark Weinerinvesting.businessweek.com/research/stocks/private/person.asp?personId=30560699

Canada PCanada PCanada PCanada PCanada Pension Planension Planension Planension Planension Plan2020202020111111 Inv1 Inv1 Inv1 Inv1 Investmentestmentestmentestmentestment

$19 million$19 million$19 million$19 million$19 million

Dell, the world’s third largestcomputer company, is a USmultinational with assets of

US$38 billion. A significant amount ofthat wealth comes from military sales.Between 2000 and 2009 alone, Dell re-ceived US$6.2 billion in US militarycontracts. During each of those tenyears, Dell was among the Pentagon’stop 100 suppliers and, overall, placed39th for the whole decade.

In his speech to a US Navy tech-nology conference in 2001, companyfounder, chairman and CEO, MichaelSaul Dell, said he was “very proud” the“Navy is one of Dell’s largest custom-ers.” At a US Air Force technology con-ference in 2002, he said “the Air Forcehas become one of our largest custom-ers.” When introducing Dell at a USArmy technology event in 2004, Gen-eral Steven Boutelle said there are

“soldiers all over the Middle Eastthat are Dell employees functioningin reserve units. They have contrac-tors in the Middle East. They aresupporting us throughout Baghdad,Iraq and the rest of the world.”

Dell’s speech then noted that “[t]hisyear, the Army is going to be one ofour largest customers in the world.”

Dell also supplies US allies andhas had a subsidiary in Israel since1999. That year, Michael Dell, ac-cepted an invitation to visit Israel fromthe director-general of Israel’s Indus-trial Cooperation Authority. The Ameri-can-Israeli Cooperative Enterprise hasnoted that Dell was “born…to awealthy Jewish family in Houston,Texas,” and “is one of the richest peo-ple in the world...with a net worth of$14.6 billion in 2011.”

By 2005, Dell was the third larg-est supplier of PCs and laptops in Is-rael. This was thanks, in part, to one ofDell’s largest buyers, the Israel DefenseForces (IDF). In 2006, the IDF con-tracted Dell to supply 50,000 personal