Dell: we're no longer a PC company

27 Feb 2012
Dell Ultrabook

Dell is focusing on its enterprise credentials over PCs

Dell no longer sees its business as making and selling PCs, focusing instead on enterprise IT.

The claim follows Dell posting full-year results showing growth in enterprise, but a struggle in consumer sales.

Speaking at the launch of new enterprise hardware at an event in Twickenham, West London today, the president of Dell's enterprise solution group Brad Anderson said: "We're no longer a PC company, we're an IT company."

"Dell's changing very quickly," he added. "We are dramatically changing the make-up of our business."

"It's no longer about shiny boxes, it's about IT solutions [that let companies drive efficiencies]," he added.

The move follows Dell's creation earlier this year of a software division, echoing the strategy HP attempted last year, buying British business software firm Autonomy and considering spinning off its PC making business.

That move was catastrophic for HP's then CEO Leo Apotheker, who has since been replaced by Meg Whitman, and its bottom line, with HP's income sliding 44% last quarter.

Dell believes its recent full-year results "validates" the success of the business-focused strategy, with increases in revenue and operating income boosted by record sales on the enterprise side, while consumer sales slid 2%. Enterprise solutions and services now make up 30% of sales and 50% of profits, Dell said.

"We think our strategy is the right one," Anderson said, adding Dell expects to make more acquisitions to extend its enterprise reach.

Aongus Hegarty, general manager for EMEA, said the strategy wasn't new, but the work of two-and-a-half years. "We think the results reflect a winning, successful transformation," he told PC Pro.

While he admitted Dell was moving away from less profitable areas, including peripherals, Hegarty said the company continued to invest in PCs, citing the success of its XPS line and its continued breadth of client devices.

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