Dells 5 Point Plan

By Scott Ferguson  |  Posted 2008-04-03 Print this article Print

To help focus the company, Dell will pursue five specific areas in the three years: the global consumer market, enterprise businesses, notebooks, small and midsize businesses and the emerging markets.

In addition to IT services, Dell is also looking to delve deeper into the SMB part of its business. The company introduced a line of PCs in 2007 to address the needs of this market - Vostro - and more products are expected this year. While Michael Dell said the company does not expect its large enterprise business to grow as much this year as in the past, he said the opportunity to provide products and services to this part of the market are essential for the company to grow.

There are also plans for the company to become more engaged in both the emerging markets overseas and the consumer market both in the United States and abroad. The company now claims to have PCs in more than 10,000 retail stores worldwide.

Opportunity in a Transformed Data Center 

These developments do not mean that Dell has any lessened its ambitions for the enterprise, especially the data center. In addition to IT services, Michael Dell said the company would compete with its storage portfolio, especially with the iSCSI storage technology it acquired through EqualLogic, its new blade line and by building facilities for cloud computing.

Michael Dell believes that virtualization embedded in the hardware itself, ISCSI storage and the use of 10 gigabit Ethernet with both servers and storage are all maturing at the same time and will transform the data center. In addition, Dell believes that EqualLogic will also give the company a way to sell more sophisticated storage products to SMBs.

On the acquisition front, Michael Dell told analysts "not to hold your breath for big acquisitions" from the company anytime soon. He did note that the company might pursue smaller buys to help bolster its different product lines.

"There are a number of network-effect acquisitions, where we can acquire a product line or a key methodology or a key group of skills that we can leverage across our entire network," said Dell.


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