Michael Dell takes stage at SXSW 2024 to talk about failure, AI, Austin, UT and more

Michael Dell, founder of Round Rock-based Dell Technologies, views himself as technology optimist, and has had a front row seat to technology changes for the past 40 years since founding his company.

“It’s all just the preview for what’s to come,” Michael Dell said. “When I think about the future role that technology will play in the world, I think about the incredible innovations that we’re already starting to see in healthcare driven by technology … there’s never been a better time to be alive.”

During South by Southwest, he said these hopeful views also extend to Central Texas.

“My optimism is not just about technology. Technology has played a major role in all the great things that have happened in the world and certainly here in Central Texas,” he said.

Dell Technologies is one of the largest private employers in Central Texas, and employs 133,000 worldwide, including 13,000 in the Austin-area. The company saw a strong pandemic-era boom as people shifted to working from home and the company saw demand for its personal computers and other products boom. But it did cut 5% of its employees in 2023 to prepare for an expected economic downturn.

The founder and CEO spoke about his company, his thoughts on entrepreneurship, business, risk-taking and Austin in a Thursday South by Southwest session with Austin-based analyst Patrick Moorhead, of Moor Insights and Strategies.

Failure is a part of learning

Michael Dell founded the company when he was a freshman at the University of Texas, and said it was these early days where he learned about the importance of developing a team.

“You’ve got to surround yourself with great people, stay curious, always be learning,” he said. “We learned that integrity, reputation are the most valuable things and took a long, long time to build up and it’s really easy to destroy.”

He described being fortunate to be able to get a lot of people to join him “on this great adventure” and that Austin turned out to be a great place to attract people to.

Failing and making mistakes is a part of the learning process, he said, and it’s important to be agile and flexible. He said that at Dell Technologies it’s okay to make mistakes as long as the same mistakes aren’t being made twice. He views it better to try 10 things and get six right, than to try five and get all five right.

“Nobody has the right answer,” Dell said. “You’ve got to go figure it out.”

Michael Dell says artificial intelligence development is enormous

“It’s amazing to see the rapid pace of innovation and what’s going on,” Micheal Dell said, adding that technology comes in waves, but this one seems “bigger, more important and more significant.”

He said technology has always been a part of “enabling human potential,” and while he’s optimistic about AI, he acknowledged it will be hard for regulators to imagine how fast the technology is evolving.

“(AI development has) got to be done in a thoughtful way and reflect our humanity and I believe it’s going to be enormous,” Michael Dell said.

Moorhead also said AI is going to transform businesses.

“The last big opportunity out there was the Internet,” Moorhead said. “We’re at the beginning of a transition that’s not only going to make a lot of waves in the tech industry but also with people and corporations.”

On taking Dell Technologies private

Michael Dell, who founded Dell Technologies in 1984 and took the company public in 1988, took the company private in 2013 before returning to the public market in 2018. In the session, he said the time period that Dell Technologies was a private company brought a lot of challenges, but ultimately helped bring the company to its latest chapter. He added, public investors don’t really like volatility, so going private was a way to accelerate the company’s transformation.

“We’re in an industry where the pace of change is only going to accelerate,” Dell said. “It’s a ‘make quick change or die’ kind of industry and major transformations involve financial volatility.”

Austin then and now

Dell said he has had a front seat to watching Central Texas grow over the past several decades, and while it has grown significantly, the region has a great combination of innovative businesses and universities that make businesses of all sizes thrive.

“I believe that entrepreneurs go where their ideas flourish and are welcomed. Capitol goes where there’s opportunity, and extreme wealth,” Michael Dell said. “Turns out Texas is a great place for that … It’s been fun playing a part in that.”

Michael Dell said Austin’s natural beauty, balance between growth, development, mobility and all the things that make Austin special, will continue to help the city remain a great place full of opportunities.

“I’m bullish on Austin and Texas,” Dell said.

The importance of universities ‘can’t be overstated’

During his session, Dell emphasized the role the University of Texas plays in making Austin’s innovation scene and companies such as Dell Technologies possible, and said higher education institutes bring incredible resources.

“The importance of the University of Texas and the other universities in Texas, really can’t be overstated,” Dell said. “If you find great companies, there’s always a great university nearby. There’s no place in the world where that doesn’t exist.”

Advice for a nine-year-old

Michael Dell also answered a question about life advice from perhaps the youngest audience member, a 9-year-old.

“Learn as much as you can. Dream big. Have as many experiences and learnings as you possibly can, prepare yourself for the future,” Michael Dell said. “Find something you’re interested in and curious about exploring, and hopefully parents will let you do it.”