Is Dell Undervalued?

Michael Dell and his partners from Silver Lake et al, they put up around $4 billion of their own cash to buy EMC for $67 billion. Despite the fact that Dell doesn't have a huge software revenue component since spinning out VMware and it doesn't own a cloud, it plays in virtually every part of the hardware market. The real opportunity lies ahead specifically Dell is embracing the cloud model. It took a while but they're on board. As Matt Baker, Dell senior vice president of corporate strategy likes to say it's not a zero sum game. Just because Dell doesn't own its own cloud it doesn't mean Dell can't build value on top of hyperscale clouds.