Dell hell continues as it morphs into enterprise cloud company

The Dell (NASDAQ:DELL) Q2 results make ugly reading. The company is in mid-transition from a consumer-PC-led business into an enterprise 'n' cloud-computing firm.

In IT Blogwatch, bloggers manage to avoid using the phrase post-PC.

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By Richi Jennings: Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention: iPhone owners are sad and alone...

James Niccolai reports:

Its profit for the period declined 18 percent from a year earlier...revenue fell 8 percent. ... Most of Dell's money still comes from desktop PCs, sales of which were down 9 percent...and from laptops and other mobility products, which were down 19 percent.


Dell said its [Q3] revenue would be down 2 percent to 5 percent from [Q2]. ... A new OS release can sometimes boost sales...but Dell doesn't expect much benefit from Windows the near term.  MORE

Iain Thomson adds the enterprise view:

Wall Street analysts were expecting [this]. ... Dell blamed the drop on...its PC and mobile divisions, saying that its consumer PC lines were down 22 per cent on the year.


The enterprise solutions and services division is doing very well, however, with revenues up six per cent.  MORE

Terrence O'Brien reads between the lines:

Dell's slide deck...unsurprisingly points out that Windows 8-based [PCs] and tablets are on deck, but it also mentions a mysterious "converged device" segment as well.  MORE

Robert Broens runs the numbers:

Over the past five years, shares in Dell have lost roughly half their value. ... Net profits remained stable, as Dell expanded its activities in the higher-margin enterprise business. ... Operating performance has been dismal for years, and seems to deteriorate further into 2012.


Dell's PC business is eroding very fast. ... The network and enterprise division is not large enough to support the entire company yet.


I fear the value trap.  MORE

Larry Dignan is puzzled:

It's questionable why Dell bothers with its consumer business. ... Should a Windows 8 upgrade cycle fizzle, look for Dell to downplay consumer PCs even more.


Dell struggled in Brazil, India and China. Only Russia showed growth. ... Dell's transformation remains a work in progress.


Dell's server and networking sales appear to have allayed the biggest worries.  MORE
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