Dell "No Longer a PC Company" as It Focuses on Enterprise
February 27, 2012 2:07 PM
comment(s) - last by
Dell will still devote energy to its XPS lineup
Dell, a company that rose to prominence on direct sales to customers, lean operations, and competitive prices is moving its focus away from the PC market. According to
, this revelation comes courtesy of Brad Anderson, Dell Solutions Group President.
"We're no longer a PC company, we're an IT company," said Anderson. "It's no longer about shiny boxes, it's about IT solutions [that let companies drive efficiencies]."
killed off its netbook lineup
in late 2011.
Dell experienced record growth in its enterprise solutions and services divisions with $18.6 billion in revenue for fiscal 2012 ($4.9 billion for Q4). Revenue from its consumer unit dropped 2 percent for Q4 to $3.2 billion.
also reports that enterprise solutions represent 50 percent of Dell's profits.
Not surprisingly, the signs that a move away from PCs was right there in the company's earnings report. “Our customers think of Dell in much broader terms now, trusting us with their comprehensive IT needs, from the datacenter to the device,” said CEO Michael Dell last week. “The expanding mix of revenue and earnings from enterprise solutions and services is critical to our future."
According to Anderson, Dell will still devote energy to its XPS family of PCs that have been successful for the company.
Rival Hewlett Packard
pondered such a move last year
, but new CEO Meg Whitman
decided against tossing asides its PC unit
. "HP objectively evaluated the strategic, financial and operational impact of spinning off Personal Systems Group (PSG)," said Whitman in late October. “It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger."
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RE: Apple rakes in the profits . . .
2/27/2012 4:07:42 PM
I would say that's very disputable.
I work in a large company and I know of only one person out of approximately 300 people in my area who uses an apple product for real work.
There are lots of iphones/ipads used by folks to keep on top of email/calendar after hours but everday work is done in word and excel, documents are shared via sharepoint, emails are sent via outlook/exchange to our business partners who also almost exclusively use office, windows and other microsoft products.
So your comment may be true for consumers but even in that space I wouldn't count Microsoft out just yet. They came out of nowhere in the game console space and are now one of the top, if not the top game console manufacturer... they have a lot of money and a lot of talented people.
Right now they are (finally) putting together a cohesive phone, tablet and cloud service for the consumer space with windows 8, windows phone appollo and skydrive. I don't know if they will succeed in breaking into this market but to paint them as somehow irrelevant is IMO very premature.
RE: Apple rakes in the profits . . .
2/27/2012 4:17:28 PM
Yes, a lot of the execs and higher ups around here (and judges) got iDevices thinking they were cool and easy to use only to realize they can't really do a whole lot on there for actual work. They can sync their emails from our exchange server but don't like using them for typing emails because it's not practical. We use a Windows environment (switching to Win 7 this year, we are almost done deving it) and all our machines are Dells. I don't like Dell on a personal line and never refer anyone to them, but for an enterprise they seem ok, we don't need high end machines most of us. For those that do we get higher grade machines. Dell does have a wide array of machines that we use, anything from a standard desktop to a ruggedized laptop for various Public Saftey devices. Any iDevice in our environment is going to get pulled within the next few months and not allowed back on to the system. We are however looking at Android based phones (instead of BB) and already have many in the environment as well as Android and MS based tablets for certain areas in the enterprise.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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