Dell offers glimpse of its post-buyout life
Enterprise customers and analysts assess Dell's ownership change
Computerworld - There is a lot yet to be told about how going private will change Dell, but one thing it won't change is its enterprise strategy.
With its $24.4 billion buyout, Dell's enterprise strategy "does not change," Jess Blackburn, a spokesman for the company said in an email. "And by becoming a private company, we can more effectively proceed executing that strategy."
There is little reason for Dell to say otherwise. Dell's enterprise software and services revenue is increasing as it expands its end-to-end offerings.
If anything, Hewlett-Packard indirectly validated Dell's enterprise abilities by calling attention to them. HP warned Dell's enterprise customers on Tuesday that "leveraged buyouts tend to leave existing customers and innovation at the curb."
One person who won't be waiting at the curb for a ride from HP is Tom Glaser, vice president for IT at Howard Community College in Columbia, Maryland. He's happy with the Dell.
The college, which has some 13,000 students, has a major investment in Dell products, which have "proven to provide quality and reliability," as well as good customer support. He expects Dell will strive to provide the same customer service levels post buy-out.
"Good business and customer partnerships are earned over time and experience, so their competitors would need to do more than just pick us up at the curb," said Glaser.
Dell has been working to win customers such as Glaser. Two years ago it held it first large user conference, which Glaser attended. These conferences, most recently in December, have been forums for Michael Dell to demonstrate how his firm is integrating its hardware with new services and software.
Dell's strategy appears to be succeeding. Dell's enterprise services and software business now comprise over a third of its revenue, and over 50% of its gross margin, an increase from last year, said David Mehok, executive director of investor relations, at a conference last month. Dell is scheduled to hold a conference on Feb. 19 to discuss the fourth quarter and full year.
Dell's strategy is apparent in its acquisitions. Just last year it bought thin client maker Wyse, and is set to launch a thumb drive-like computing device with multiple uses. It also bought the mainframe migration firm Clerity Solutions and the security firm SonicWall, among others.
Dell's new ownership structure may create some uncertainty about the vendor's direction, but one Dell customer, James Bottum, the CIO of Clemson University, said that's something they've been dealing with for a long time.
"Dell is in transition, and the transition has been going on for some time," Bottum said. The company is far from being the PC maker it once was, he said. They are working, for instance, with Dell on a cloud-based HPC system.
- Microsoft's new CEO and his first-100-days plan
- Personal history may thrust new Microsoft CEO into visa debate
- As Dell cuts, Apple adds jobs in Austin
- Dell cuts 'small percentage' of workforce
- Lenovo's Motorola, IBM server buys will likely get strict U.S. security review
- Welcome to the era of radical innovation
- China passes Japan to become world's 2nd largest IT market
- BlackBerry sale might not include smartphones
- Tech hiring accounts for 10% of U.S. employment gains
- Gartner offers more data on PC decline and tablet surge
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Apple-ization of the Enterprise The growing wave of BYOD and increasing numbers of Apple hardware in the workplace holds major implications and opportunity for today's software companies.
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- What Datapipe customers need to know about the new PCI DSS 3.0 compliance standard This handy quick reference outlines what PCI DSS 3.0 is, who needs to be compliant and how Alert Logic solutions address the new...
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All PCs White Papers | Webcasts