Dont Fuss with the Enterprise
One area that Dell changed little is the company's core commercial PC business, Baker said. While the company did introduce new technologies, such as mobile workstations with solid state drives, most the advances were left to improving PCs for consumers as well as for small and midsize businesses. In July, Michael Dell personally introduced the Vostro line of PCs for smaller companies, which were simpler to install, inexpensive and eliminated "bloatware."Dell also maintains its No. 1 ranking as the PC vendor of choice for the enterprise, according to Forrester Research. For now, however, midmarket and consumer business remains its main focus. "They have been much more responsive to the midmarket and to their consumer users in general," Baker said. "Right now, those are the biggest opportunities and the fastest-growing segment of the market."
With the direction the company has taken its core PC business, it has managed to stem its losses in the worldwide PC market. IDC found that Dell shipped nearly 40 million PCs in 2007, an increase of 2.3 percent compared with the previous year. While not a huge step forward, several analysts agreed that Dell's move into retail and consumer markets helped reverse some of the losses. Dell also has its eye on emerging markets and recently opened a new facility in Poland in January to better supply Eastern Europe.