Dell CEO Michael Dell plans to quit his job at the company's AGM on July 16 to be replaced by current Dell president Kevin Rollins.
Michael Dell will become chairman. The company describes the move as: "Consistent with the two executives' current roles. Michael Dell has been focusing on initiatives such as new technology and customer service, while Rollins has been working on company strategy and operations."
In a recent interview Rollins discussed the two men's collaborative relationship. He said that while both have clear areas of responsibility, they also share some roles. "Whoever is available will do those things," he told Cnet.
"I think that in terms of the day-to-day business, I run the company. He runs technology. We share the strategy stuff."
A Dell spokesman told CBS MarketWatch the decision didn't imply any dissatisfaction with Michael Dell: "This shouldn't be perceived as some sort of sea change. Michael's more into our opportunities and where technology is going, and Kevin likes running the day-to-day operations."
Analysts had anticipated the change. Technology Business Research analyst Brooks Gray said: "I think that Dell may be ready to have Rollins recognized both internally and externally as the leader of the company. Rollins has been running the show, and now he has the title he deserves."
IDC analyst Roger Kay said: "In some sense, Michael (Dell) has more options available to him than anyone on Earth, right now. Over time, this represents an opportunity for Michael to gradually step aside."
Rollins is also expected to be nominated for Dell's board of directors at the annual meeting.