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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2/28/2012 10:53:07 AM
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.
2/28/2012 7:41:35 PM
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.
3/1/2012 12:00:56 PM
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.
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