Dell "No Longer a PC Company" as It Focuses on Enterprise
February 27, 2012 2:07 PM
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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 . . .
2/28/2012 7:50:23 AM
Pretty much every medium sized business and upwards runs at least an Exchange server, if not a fully blown Windows server. OSX still causes headaches with Exchange and SMB integration, and most likely always will. You could just as easily argue that Apple dropped the ball when it came to enterprise level server side software and OSs (hint: it did).
Which, in a way, is to their credit. Often, it's about being able to say "Hey, we've been trying to do this for ages but it would appear we're not too good at it, we may as well leave it to others who do it better than us." Maybe this will happen with Bing one day.
Saying Microsoft has failed in the consumer space simply isn't true - the Xbox is the prime example. Apple tried to make a game console once - it was an unmitigated disaster. Microsoft has had a lot more success in this field. The Kinect is a revolutionary device which goes beyond gaming - future versions will find use in hospitals and other fields where gesture based UI can be not only useful, but safe. Microsoft's support of the homebrew Kinect community and the release of the SDK is opening up new avenues for the device, and is a prime example of excellent corporate technology governance.
Defining success in consumer electronics by referring to smartphone sales only is myopic at best. Feature phones are still a larger market globally, and Nokia's brand equity and expertise in this area coupled with WP7 could lead to them taking over in emerging markets where iOS has little foothold.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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