Print 45 comment(s) - last by 91TTZ.. on Mar 1 at 12:01 PM

  (Source: TechSpins)
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 PC Pro, 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]."

The company 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.
PC Pro 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."

Sources: PC Pro, Dell Earnings

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By hiscross on 2/27/2012 6:51:29 PM , Rating: 2
Dell stayed with Microsoft as long as it could. Good for them. But times have changed and Dell is going the way of IBM and have become a service company. The trouble with that model will be the rise of the Cloud. Like the mainframe, data center server support will shrink and not be money maker. Mobile devices and Cloud is driving the future.

RE: MainFrames
By TakinYourPoints on 2/27/2012 11:09:50 PM , Rating: 2
Yup. Dell looked at IBM's revenue and stock chart over the last few years and decided that was the right thing to do, and he's right. As you infer though, we'll see if the move is too little too late. IBM was well ahead of the curve when they spun off most of their business and focused on being a service company. They saw what was coming way ahead of most of these techs like Dell and HP, who are just now reacting to changes in the market that have been clobbering their bottom line.

RE: MainFrames
By 91TTZ on 2/28/2012 10:53:07 AM , Rating: 2
This makes no sense at all. I often hear people refer to the "cloud" as if somehow sidesteps the need for actual hardware, whether it be PC or servers. Wrong.

The "cloud" is just an old idea rebranded. It's a return to the client/server model that was popular in the 70's and 80's, brought forth by cheap high speed network connections that are even available on the go. Companies love this model because you no longer own a product, you must perpetually rent a service which ensures a constant stream of revenue.

The company I work for provides "cloud" services and that means servers. Thousands and thousands of servers. We run large datacenters with high speed connections to the internet. When you store your information to the cloud you're simply attaching to servers the same way that businesses have for the last 40 years. The only difference is that instead of the access being constrained to a LAN, high speed wired and wireless internet now enables people to access these servers from anywhere.

Setting up a cloud environment is pretty much the same as for any other website. You typically have a web server backed by a database server. I work on the Microsoft side of things so the typical setup usually involves racking a few Dell or HP servers, installing Windows Server 2008 R2 on them, installing the IIS services on the web server and then installing SQL 2008 R2 on the database server. We IP them, provide them a connection to the internet and then turn the servers over to the developers which configure the website. While various websites look completely different from one another, the infrastructure is usually nearly identical on the backend. The push for cloud computing has increased the number of servers in our datacenters dramatically.

RE: MainFrames
By hiscross on 2/28/2012 7:41:35 PM , Rating: 2
You need too understand how Amazon, Google, Apple, Oracle, IBM, Terramark, etc operate their Cloud services. They are quite a bit different than what you have described. Try CISCO servers using L3 storage on virtual lans. Huge difference.

RE: MainFrames
By 91TTZ on 3/1/2012 12:00:56 PM , Rating: 2
What you described is all stuff that datacenters have done for years. And Cisco servers are nothing more than rebranded HP and IBM servers.

It's not much different than what I described. I deal with this stuff day in and day out.

RE: MainFrames
By borismkv on 2/28/2012 2:50:38 PM , Rating: 2
Uhh, Dell is still staying with Microsoft. MS provides the vast majority of OSes for their servers, which is what their focus is going to be moving forward. And as someone else said, just because something is "In the cloud" doesn't mean it isn't still running on a server. If anything this means a potential for greater profit for Dell, because the high end servers that run cloud services have a significantly higher profit margin.

RE: MainFrames
By 91TTZ on 3/1/2012 12:01:57 PM , Rating: 2

"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
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