Dell: "We're no longer a PC company, we're an IT company"

According to Brad Anderson, president of Dell's enterprise solution group, the PC company giant may not regard personal computers as its main focus any more. "We're no longer a PC company, we're an IT company," Anderson said Monday, as reported by PC Pro.

Anderson's quote comes from his speech at the launch event of new enterprise hardware in Twickenham, West London. Anderson also said, "It's no longer about shiny boxes, it's about IT solutions."

His comments follow news that while Dell's profits reached record numbers last year, much of that growth came from the enterprise sector, while the consumer side fell. Enterprise sales increased 58 percent for networking and 21 percent for storage, but consumer sales were down 2 percent globally, and consumer profit fell by almost half to $39 million from $69 million. Meanwhile, representatives from Dell said that enterprise solutions and services now comprise 30 percent of sales and 50 percent of profits for the company.

"Dell's changing very quickly. We are dramatically changing the make-up of our business," Anderson said, indicating that Dell is taking this shift in business to heart and reacting quickly and accordingly.

Aongus Hegarty, Vice President and General Manager of Dell EMEA, said to PC Pro that Dell is moving away from less profitable areas, including peripherals. However, Hegarty said that Dell will continue to invest in the home computer market, citing the popular XPS line as a success.

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xendrome said,
I'd agree, they sell everything from Desktops, Servers, SANs, Network Infrastructure, to on-site solutions that they setup and train. I don't see any issues with that comment.

This is true. Dell has been doing IT solutions and services with businesses of all sizes for a while now.

Never understood the hate on Dell. My current XPS has been flawless for over 2 years now. The Quickbooks pc at work is also a dell. It's been going flawless 7 years now.

Non-Active-Account said,
Never understood the hate on Dell. My current XPS has been flawless for over 2 years now. The Quickbooks pc at work is also a dell. It's been going flawless 7 years now.

Same, i've had no issues with Dell whatsoever.

same reason why some kids (some not-so-young) have apple hate now... they follow what ever is cool to hate at the moment.

Non-Active-Account said,
Never understood the hate on Dell. My current XPS has been flawless for over 2 years now. The Quickbooks pc at work is also a dell. It's been going flawless 7 years now.

Non-Active-Account said,
Never understood the hate on Dell. My current XPS has been flawless for over 2 years now. The Quickbooks pc at work is also a dell. It's been going flawless 7 years now.


Hate is often just a display of ignorance.

Non-Active-Account said,
Never understood the hate on Dell.

Agreed. My first laptop was a Dell and it worked without any problems for about 5 years. I'd have continued to use it if it hadn't been stolen.

Non-Active-Account said,
Never understood the hate on Dell. My current XPS has been flawless for over 2 years now. The Quickbooks pc at work is also a dell. It's been going flawless 7 years now.

My XPS had to be sent in for repair 4 times in the first year. What a nightmare. PC's at work that were Dell's weren't as bad, but problems nonetheless... Moved to Toshiba's and Asus and not a single problem. It's nice using a genuinely good PC maker.

Intrinsica said,

Agreed. My first laptop was a Dell and it worked without any problems for about 5 years. I'd have continued to use it if it hadn't been stolen.

Dell's USED to be great computers. My first and second laptops were Dell's and lasted forever. That unfortunately is no longer the case for Dell...

Sure, why not. Focusing on enterprise would probably do a lot for their quality. Sure, a bunch of the self-styled tech-savvy on sites like, er, this one, will rush in to lol at Dell for whatever reason, but this kind of move is usually a positive one.

IBM didn't become cool again till they ditched their focus on consumers. Really, a consumer-oriented business model is poisonous to long-term growth.

Joshie said,
Sure, why not. Focusing on enterprise would probably do a lot for their quality. Sure, a bunch of the self-styled tech-savvy on sites like, er, this one, will rush in to lol at Dell for whatever reason, but this kind of move is usually a positive one.

IBM didn't become cool again till they ditched their focus on consumers. Really, a consumer-oriented business model is poisonous to long-term growth.

well said

Joshie said,
IBM didn't become cool again till they ditched their focus on consumers. Really, a consumer-oriented business model is poisonous to long-term growth.

IBM is cool? When did that happen...?

MFH said,
IBM is cool? When did that happen...?

I think you'll find that when they created the Lenovo laptops people started to take notice again. Before Lenovo I'd rarely heard of IBM being used in a home environment, and even in a business environment the focus seemed to be servers and the like rather than the end user.

Intrinsica said,

I think you'll find that when they created the Lenovo laptops people started to take notice again. Before Lenovo I'd rarely heard of IBM being used in a home environment, and even in a business environment the focus seemed to be servers and the like rather than the end user.

So they ain't cool anymore as Lenovo is independent of IBM and manufacturers the ThinkPad now…

MFH said,

So they ain't cool anymore as Lenovo is independent of IBM and manufacturers the ThinkPad now…

Sorry, I got muddled up. IBM sold their personal computer business to Lenovo, not the other way round. I guess you're right then, on the PC side of things IBM haven't been "cool." But on an enterprise level, companies and corporations still look to IBM for their needs, which I guess makes them as "cool" as individuals that look at Lenovo or Dell for their needs.

Joshie said,
Sure, why not. Focusing on enterprise would probably do a lot for their quality. Sure, a bunch of the self-styled tech-savvy on sites like, er, this one, will rush in to lol at Dell for whatever reason, but this kind of move is usually a positive one.

IBM didn't become cool again till they ditched their focus on consumers. Really, a consumer-oriented business model is poisonous to long-term growth.

Dell is nice looking computers, but the quality is junk. I don't think they're going to get away with that for long in the IT segment they're now after...

Shiny boxes? These asshats couldn't deliver on orders and now they expect business to trust them with real business impacts? 2nd graders could do better.

No, I'm not a fan.

zeke009 said,
Shiny boxes? These asshats couldn't deliver on orders and now they expect business to trust them with real business impacts? 2nd graders could do better.

No, I'm not a fan.

What was the exact problem?

zeke009 said,
Shiny boxes? These asshats couldn't deliver on orders and now they expect business to trust them with real business impacts? 2nd graders could do better.

No, I'm not a fan.

Exactly. Dell has to be the worst PC company out there, with reliability in the toilet. And they want businesses to trust them with integral IT solutions? I give it a couple of years before these companies get over the shiny boxes and see that things keep failing. That's all Dell is good at anymore is building the shiny boxes. Everything else is crap.

As all big companies, your going to get plenty of people out there with ad things to say due to a bad experience or two. We use dell for all customers orders, and one batch of vostro 220's had a large amount hard drive failures in first 3 months. Now I know this was due to a bad batch of WD HDDs from WD and not a dell issue, but the customer just seen it as confirmation of dells reputation.

Some people gonna hate.

All IT companies are about IT solutions, even PC companies. Providing PC's is an important component of providing a solution for the IT industry. I wish Dell would be more specific about their aim than using such a hand-waving language. Is it about software? About server installations? Surely there are specific IT solutions they're aiming for. But maybe this is just a nicer way of telling that they aren't sure of their new direction yet.

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