Putting Dell in the

 
 
By eweek  |  Posted 2004-05-10 Print this article Print
 
 
 
 
 
 
 


On-demand computing picture"> You hear IBM talk about on-demand computing or utility-based computing. How do you define those, and where do you put Dell in that nomenclature?

The marketing has gotten way ahead of the reality. When I go out and talk to customers, thats what they tell us. So our scalable enterprise is a more logical and understandable approach to whats really going on. The notion that the company you mentioned can help you save money doesnt make any sense at all. Look at their P&L [profit and loss]. Theres nothing about their P&L that suggests youre going to save money.

Scalable-enterprise computing could be inside your own business; it could be inside an outsourced provider or an application service provider. Were not trying to dictate to the customer whether they should do one or the other. Let me be clear here. Were not a consulting company. If you come to us and ask, "Where should my applications be?" were not making ourselves out to be experts on where your applications should be.

Dell introduced a Layer 3 networking switch recently. The game plan was always to keep moving up the IT stack. How far and how fast will you go?

Were pretty happy with the networking business. The units are growing at a rapid rate. Going up the stack does not have nearly the priority of some of the other things we talked about, like storage. Or services. Or printing.

One of the things we have to figure out at Dell is what were not going to do. Were not going to do optical switches and high-end consulting.

What about Tablet PCs? They seem to have attained a niche. Are they Dell caliber at this point?

Out of 170 million computers sold every year, the tablet market is—no one is really sure—300,000 units per year? Thats a couple of hours of sales for the industry. You can calculate it out yourself.

Are you seeing Windows XP upgrades driving a wave of demand?

Yeah, to some extent. You also have a lot of people out there with installed bases that are just pretty old, and they recognize the need to upgrade. When a new operating system comes out, you dont have a lot of big corporations jumping on it right away, which is why the software thats critical for 64-bit will take a long time.

Check out eWEEKs Desktop & Notebook Center at http://desktop.eweek.com for the latest news in desktop and notebook computing.


 
 
 
 
 
 
 
 
 
 
 

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