Dell to use deals to expand services business: report
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Dell Inc.  will use partnerships and acquisitions to become more services-oriented, the Financial Times reported in its online edition on Wednesday, citing an interview with Chief Executive Michael Dell.
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Dell customers can upgrade from Microsoft Windows XP to Dell&#39;s XP Media Center operating system for half the price as part of a promotion running from now until Nov. 22.
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NEW YORK _ Dell Inc. ventured deeper into consumer electronics Thursday, adding plasma televisions to its growing lineup of home-entertainment products.
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The U.S. Army has hired Dell Inc. to deliver desktop and notebook computers, displays, printers and peripherals for three years.
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Dell plans to sell computers with preinstalled Linux outside the U.S. as well as offer the Ubuntu Linux distribution to small business customers.
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Dell&#39;s efforts to reinvent itself this year through a dramatic break from its direct-sales model, expanded services, and new enterprise offerings have shown positive early results, but some users have lingering concerns about supply chain management and support -- long-time issues for the company.Weathering an accounting scandal and a slump in profit,&#160;founder Michael Dell reclaimed the helm of the company after CEO Kevin Rollins resigned in January, quickly replacing top managers and in May announcing plans to lay off 10 percent of the company&#39;s workforce.For years, Dell was the top PC vendor in the world, an acknowledged master of logistics in a business where margins can be razor-thin. It was efficient enough to keep prices low to ward off competition without suffering big setbacks in profits. But by 2006, when Hewlett-Packard unseated Dell as global PC leader, that was no longer the case.Dell&#39;s plans to regain its former dominance have resounded in the market. The company&#39;s third-quarter results, announced two weeks ago, showed profit increasing year over year, and record revenue of $15.65 billion. During the company&#39;s earnings call, Michael Dell said the company will put products on more retail shelves worldwide while also helping business customers &quot;simplify IT&quot; and reduce maintenance costs via customized hardware, software, and services.The company has also moved to put accounting issues behind it, recently&#160;completing an internal investigation and restating its financial results from fiscal 2003 to the first quarter of 2007.The company has been making an effort to build relationships with customers and partners and deliver products that are easier to deploy and manage, said Charles King, principal analyst at Pund-IT.Last month, Dell introduced a two-tier channel program designed to give partners better access to Dell&#39;s training, marketing, certification, and online resources. The program will provide a better chance for Dell to interact and understand its partners&#39; needs, the company said.&quot;The company seems to recognize that it has bridges to enhance with customers and partners in the channel. It&#39;s not something that&#39;s going to change overnight,&quot; King said.After years of success selling PCs directly to users, the consumer business&#39; direct-sales business model hit a wall as component prices fell, Pund-IT&#39;s King said. The strategy to simplify IT is a play at SMBs that will help Dell deliver better returns in the long term than its lower-margin direct consumer business, analysts said.However, some customers continue to have concerns about the company&#39;s support and supply chain issues.Dell is having supply shortages and can&#39;t get its servers and OptiPlex desktops to individuals and small businesses in a timely manner, said Josh Kaplan, who runs a franchise of computer support firm Rescuecom and purchases parts and interacts with Dell on behalf of customers.&quot;You can acquire all the technology you want, but Dell will send hardware out blindly,&quot; Kaplan said. It will be a challenge for Dell to deliver what it calls &quot;IT in a box&quot; -- its terms for packages of products and services -- to SMBs and enterprises, Kaplan said. Dell has traditionally delivered mostly standardized systems, Kaplan said. While Dell has built systems to order by letting users select from a menu of options, it does not have in-depth experience offering customers services over the lifecycle of products, he said.Jeremy Cole, owner of Proven Scaling, a small consulting firm with offices in the U.S. and U.K., said Dell has internal staffing issues that affect its support services.&quot;Dell&#39;s sales structure is really strange. They tend to bounce your company around to a new account representative every few months who are wildly differing in experience, intelligence, and understanding of the Dell sales system,&quot; Cole said.Cole is satisfied with Dell equipment but said the company needs to show more support for open-source applications and the Linux OS. &quot;It&#39;s clear that Dell cares about Linux in that all its server-class hardware is well-supported by the Linux kernel and it has many people dedicated to making sure that&#39;s the case. However, it&#39;s not good enough just to boot,&quot; Cole said.Though generally positive about Dell&#39;s support, Jason Dunn, who runs Thoughts Media, which publishes Web sites for technology enthusiasts, couldn&#39;t resolve certain LCD&#160;monitor problems with Dell offshore support representatives. He had good experiences with Dell&#39;s PC and HDTV support representatives, so the experience varies, Dunn said.Other users have had a good experience with Dell&#39;s strategy to simplify IT. Dell&#39;s efforts have paid dividends for Bikeworld.com, a medium-size retail business in San Antonio, which saved money by cutting its internal IT person. The company uses Dell systems with Microsoft Dynamics Retail Management System, connected to multiple offices via a VPN.&quot;Businesses are in a belt-tightening mode. You can&#39;t have extra people on payroll,&quot; said Whit Snell, general partner at Bikeworld.com. Bikeworld has resolved IT problems with Dell remotely and has a contact readily available to help with problems.Dell officials were not available for comment on support issues.Overall, Dell is trying to be more proactive and helpful, said Kurt Scherf, vice president and principal analyst at Parks Associates. Dell&#39;s new enterprise support services to simplify IT, like remote management services, could, if successful, trickle into the consumer segment, which could benefit end-users, Scherf said.Dell this year has tied up with retailers like Staples,&#160;Wal-Mart, and&#160;Best Buy&#160;to distribute PCs, something competitors HP and Acer have been successful at. But if Dell wants to make sure its customers aren&#39;t tempted by HP or Lenovo in the retail market, fixing problems that some users report about its support infrastructure has to be on top of the company&#39;s to-do list, Pund-IT&#39;s King said.Building out retail partnerships changes the consumer-facing relationships for Dell, which could lead to positive changes in the company&#39;s support and services. The results are a work in progress, King said.Balancing out its business model, Dell is showing signs that renewed efforts in the higher-end business sector are catching on, with third-quarter revenue growing in the server and storage markets. The enterprise market provides better margins than retail, and the remote management services market is growing, King said. Dell is trying to address that through acquisitions and by creating a services organization and specialized products targeted at professionals and businesses.The company this year&#160;acquired SAN (storage area network) vendor EqualLogic&#160;and managed services companies&#160;Everdream&#160;and Silverback. It announced a deal with Sun to offer the company&#39;s Solaris OS.Dell has been pushing hard to improve its systems management portfolio, especially remote desktop management capabilities that could help simplify complex IT infrastructures. In October, the company announced On-Demand Desktop Streaming, a server-based platform that streams the OS, applications and data to diskless desktop clients over a Gigabit Ethernet network.By offering design improvements and bundling software and services like remote management, Dell is trying to get the focus off of price and moving to build the framework for a new business model for the enterprise, said John Spooner, senior analyst at Technology Business Research.Dell&#39;s reinvention should come as no surprise as Michael Dell is on a mission to reconstruct his company, Pund-IT&#39;s King said. &quot;It must have been hard for Dell to see a company he built falter,&quot; King said. He is putting money in the right spots, and competitors like HP and IBM will do well to keep a close eye on Dell, King said.
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(InfoWorld) - The new team of leaders at Dell is weighing a request to give customers the option to purchase PCs with the Linux OS, instead of the default Windows, after thousands of users voted for that idea on a company blog. The idea appeared Friday on a company-hosted blog called Dell Idea Storm. CEO Michael Dell unveiled the blog Feb. 16 as part of hisÂ effort to reinvigorate the struggling company. Dell said he hoped to use the blog to collect users' feedback and improve customer service. Since then, company executives and department heads have been monitoring the site, paying closest attention to the ideas winning the most votes, Dell spokeswoman Caroline Dietz said on Wednesday. The most popular threads on Wednesday included demands for Linux-based laptops, consumer PCs that are not pre-loaded with unsolicited applications and requests for Sun Microsystems' OpenOffice applications instead of Microsoft's Office suite. Popular requests also included a preference for Mozilla's Firefox Web browser instead of Microsoft's Internet Explorer, and pleas for Dell to stop routing service calls to operators in overseas countries such as India. Dell leaders have heard those ideas "loud and clear," and plan to post a statement on the blog this week explaining how they will react, Dietz said. But she warned that the company would judge ideas on more than just their popularity. "Just because an idea is number one or number two doesn't necessarily mean Dell will do it, but it does mean it will receive the highest level of attention," she said. Dell has already changed the blog rules to make the voting more accurate, after the site was flooded over the weekend by certain users clicking multiple times on their favorite links, Dietz said. Beginning Wednesday, Dell required users to register, ensuring that each person can vote just once for each posting. Another misleading aspect of popular threads is that each vote awards postings 10 "points," meaning that the Linux thread has about six thousand supporters, not the posted number of 67,703. The second-most popular thread -- the request for OpenOffice -- has 40,572 points, and a plea to avoid unwanted software applications has 27,476 points. Most other ideas on the 95-page blog have won only a handful of votes. Despite the blog's problems, Dell will someday decide to sell Linux-based PCs in their consumer market, experts say. "Look, they already have a strong partnership with Red Hat and Oracle to move Linux into the enterprise server space. I think what they're waiting for is some more compelling applications to show up on Linux for personal use. Think about what you use your laptop for -- it's usually office, games, music and Internet access. When all of these things come together in a consumer-friendly, seamless way there will be a case for Dell to adopt Linux on portables to sell to the masses," said Joe Clabby, president of Clabby Analytics. "My 84 year-old father-in-law only needs his PC for light word processing and for AOL access. He can get plenty of Linux word processors -- but where's AOL Linux? When the right applications show up, and when they are integrated, it will all come together," Clabby said. Fixing Dell's finances could call for such a bold move. Once a Wall Street darling thanks to its innovative "direct sales" business model, Dell has struggled in recent months with falling profits, anÂ accounting investigationÂ by federal stock regulators, a lawsuit by disgruntled investors, aÂ notebook battery recallÂ and finally the resignation on Jan. 31 of Dell's hand-picked successor as CEO, Kevin Rollins. SinceÂ resuming his job as CEOÂ of the company he founded in 1984, Dell has moved quickly to restore investors' confidence by ousting several long-time executives and replacing them with leaders from outside technology companies including Motorola and Selectron. Â
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(InfoWorld) - Dell has signed a deal with a U.K. mobile phone retailer to distribute free laptops with the purchase of a broadband Internet access subscription, continuing the company'sÂ push into the retail market. Starting in September, consumers who buy a two-year contract for America Online's broadband service through the Carphone Warehouse GroupÂ will get a coupon for a free base-model Inspiron notebook from Dell. AOL broadband costs Â£19.99 ($41) per month. A similar free laptop offering was unveiled this week by mobile provider Orange UK, a move designed to get consumers who may have never owned a computer or bought broadband service using the Internet in order to grow subscriber numbers, said Jonathan Coham, an analyst at Ovum. Those customers tend to be older and are more loyal. But it won't come cheap for those operators. "These are very low-margin customers for the time being," Coham said. "Both Orange and Carphone Warehouse are going to make a slim amount of money on top of what they are getting from the broadband subscriber." The Dell laptop comes with Microsoft's Vista Home Basic OS, 1 GB of RAM, an 80GB hard drive, an Intel Celeron processor and Wi-Fi. The laptop can be upgraded for a fee. Customers also get a wireless router, but have to pay a Â£14.99 laptop delivery fee. By contrast, Orange's free laptop offers fewer features than Dell's. It's made by Ei Systems, and comes with Windows XP Home, 256 MB of RAM and a 40GB hard drive but doesn't have Wi-Fi. Users can upgrade to a better laptop for a fee. Orange's broadband service, however, is cheaper, at Â£14.99 per month for a 24-month contract, excluding an initial discount for the first three months. A Dell spokeswoman said the deal with Carphone Warehouse is an extension of the company's retail strategy, and there will be more retail deals around the world coming soon. Dell, which traditionally sold computers online, by phone or through catalogs, sees the retail market as a way to stop its declining market share, Coham said. Dell could potentially try to entice the novice computer users who take the free laptop into buying technical support packages. "I think if Dell is smart they will see this as an opportunity to upsell these basic PC customers with additional accessories, software and support," Coham said. Dell beganÂ selling computers at Wal-Mart, the American retailer, in June. The company is also now selling three PCs with the Ubuntu 7.04 Linux OS installed, a move driven by customer demand, Dell has said. Â
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PC maker Dell and software company Microsoft have formed a development partnership to improve the way customers manage systems across the enterprise.
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Part of Dell Computer's transition strategy is to no longer focus all its interests on one side of the technology market exclusively. That was made clearer today with another acquisition of a service-oriented software provider.
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Computer maker Dell Inc. DELL.O on   Monday said it would hire an additional 500 engineers for its   product development operations in central Texas.
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NEW YORK, October 20  - Dell Inc (DELL.NAS) has strengthened its leading position in the global PC market with additional market share gains in 3Q04.
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Dell decided against bidding for Gateway, but may buy its way into other markets, CEO says.
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Dell has announced the availability of virtualisation services.
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Dell will begin offering on Monday new  "blade" servers at prices it says will bring the ultra-compact  computers into the business mainstream and allow it to grab  market share from rivals HP and IBM.
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Dell Inc. (DELL.O), the world's largest PC maker, could announce an expanded selection of its consumer electronics line in the next several weeks, a retail industry analyst said on Wednesday.
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Computer maker Dell Inc. DELL.O on   Tuesday said it is extending through 2011 a multibillion dollar   deal with the world's biggest data storage maker, EMC Corp.   EMC.N.