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Dell Between Jobs and Yang

Stocks in this article: DELL MSFT GOOG AAPL YHOO

NEW YORK ( TheStreet) -- While most tech reporters long for stories about Steve Jobs or Bill Gates, I've always been more interested in Michael Dell.

Dell's (DELL) rise from deep in the heart of Texas to the top of the PC heap in the 1990s tells us that a Silicon Valley address isn't necessary to tech success, that innovation can come from anywhere.

So Dell's fall over the last decade made me personally sad. And it seems that Wall Street actually has a heart, because contrary to what our Richard Cox saw in yesterday's price action, big investors seem to be ready to give Dell back control of the company, as Chris Ciaccia writes.

It's kind of romantic. The founder swoops in to save the day after his company loses its way.

But reality doesn't always make for happy endings. I've seen it many times. For every Steve Jobs you might point to, returning Apple (AAPL) to glory, I can find you 10 or more Jerry Yangs.

You remember Jerry Yang, don't you? Co-founder and "chief Yahoo" of Yahoo (YHOO), who returned to his company as CEO after it lost its way and became a media company. He failed, fell from his perch, even left the board last year.

Most entrepreneurs, in fact, are one-trick ponies. They have one great idea, and when that runs out, they're as lost as anyone.

Dell's one great idea was "mass customization," just-in-time manufacturing of PCs to order, minimizing the carrying costs of parts, eliminating the middle man.

That was a great idea back when every PC was different. Once every PC became the same, China replaced Austin as the manufacturing center, and Dell has floundered.

After he returned as CEO in 2007, Michael Dell's new idea was to move operations to western China, to Chengdu, to save a little money over having a base in the more expensive cities near the coast.

But practically before the ink was dry on his 10-year lease at Tianfu Software Park, the game changed. The PC business imploded. Dell tried building its own hybrid cloud, buying out a bunch of cloud software companies under former Computer Associates executive John Swainson, but it's no longer building its own cloud, instead selling a "partner ecosystem."

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