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 5:04:45 PM
"So Microsoft has greater market influence but can't make more money - which is after all the basic reason businesses operate. Windows position reminds me of Symbian just a few years ago."
Its not like MS is hurting. Just becasue Apple is posting record profits doesnt hurt MS's lineup. Apple makes hardware. MS makes mostly software. And MS=Symbian is just silly. The whole world runs off MS software. Symbian never ran anything but peoples old phones.
As far as MS being obsoleted, tell me when there is applications for the following that will run in a secure enterprise client/server environment for the following areas.
Customer Service (tracking, case management etc)
Do you have apps that address all that and support them? Windows does. until then, you are dreaming.... and that is just a few standard things that all companies use. This doesn't even take into account the thousands of custom apps for specific disciplines.
Apple, Mac and/or iPhone isnt anywhere near MS's level of importance. Not by a longshot. You tell me when at the very least the factories that Make Mac's and iPhones stop using MS to run thier businesses. If anyone could do it, surely that would be a place to start. Good luck with your dream though. Its good to dream.
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