Dell: "Vista was a bust"

Vista

Dell pins hopes on Windows 7-based sales recovery, but dismisses Vista

Dell expects Windows 7 to spur a sales recovery in 2010, after admitting "Vista was a bust".

"Windows 7 is the best quality product launch that Microsoft has had in a very long time," says Dell's president for large enterprise Stephen Schuckenbrock. "When you consider that Vista was a bust, Windows 7 is a capability upgrade on a scale that has really never been seen before."

PC makers are hoping the launch of Windows 7 will motivate companies who skipped Vista to invest in new desktops and servers.

Dell is also pinning its hopes on its virtualisation and services businesses, after completing the acquisition of software services provider Perot Systems.

When you consider that Vista was a bust, Windows 7 is a capability upgrade on a scale that has really never been seen before

"I would look for services capability as we drive to help customers save," adds Schuckenbrock. "Software that helps them exploit all the advantages of virtualisation is always something we are interested in."

Dell and smaller rival Lenovo have seen total PC unit sales fall in the past year, largely because of their reliance on corporate spending, and are looking to diversify their businesses to arrest declining sales.

Acer overtook Dell as the world's number two PC brand in the third quarter, according to research firms IDC and Gartner, helped by its success in the low-cost netbook PC segment.

However, Schuckenbrock claims Dell is less focused on taking back its second-place market position from Acer, and more interested in running the most profitable business possible.

"We're not unit (sales) focused," he says. "We're focused on the healthy balance of our business ... We don't want to chase things that don't make sense."

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