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Dell is well on its way to rounding out its IT management services. The company announced on Jan. 4 that it agreed to acquire SecureWorks, which provides managed security services. The terms were not disclosed, but the PC maker was quick to point out that the deal will vastly improve its ability to deliver more data security to companies around the world. As one might expect, SecureWorks believes it can deliver the same level of appeal to companies as it did prior to the acquisition.
Dell hopes to close the deal with SecureWorks later this year. When it does, the company will have yet another IT service at its disposal to improve its standing in the enterprise, showing once and for all that it can do more than just compete with HP in the PC market. With SecureWorks in tow, Dell is now a worrisome enterprise competitor, and it’s time for others in that market to realize that.
Read on to find out why SecureWorks will help Dell and its entire operation.
1. It’s a security game
In today’s corporate world, the most important aspect of any IT decision-maker’s job is maintaining security. SecureWorks is well-positioned in that market. The company currently “processes more than 13 billion security events” every day, and its intrusion-prevention tools and vulnerability scanning have proven useful to thousands of clients around the world. The company simply “gets” security; Dell will benefit heavily from that.
2. Dell needs a better enterprise option
Prior to acquiring SecureWorks, Dell’s enterprise offering was still a work in progress. The company’s recent acquisition of Compellent helped, but it was the security option that Dell needed to improve upon. With the help of SecureWorks, Dell can now deliver a more well-rounded service to corporate customers. This should be enough to put its competition on notice.
3. Looking to the world
SecureWorks made an important acquisition in 2009: It bought DNS Limited, which delivered security services to many companies in Europe. It proved to be integral to SecureWorks’ ability to expand beyond the U.S. and into the highly profitable European market. By acquiring SecureWorks, Dell now gains that additional foothold in Europe, which should allow it to expand greatly in that market.
4. Managed security is growing
Market-research firm Gartner recently released a study that looked at the expected growth of managed security services in the coming years. The company found that, in 2009, total managed security revenue in North America hit $1.8 billion. It expects that figure to rise to $2.3 billion in 2010. Gartner noted that such growth would continue, making it clear that managed security is on the rise. With the help of SecureWorks, Dell can build on that growth.
Enterprises Want Integrated IT Management Services
5. It speaks to Dell’s new focus
By acquiring SecureWorks less than a month after buying Compellent, a storage provider that competed with 3PAR, Dell is now showing the focus of its future business strategy. PCs and servers are still integral to its operation; tablets and smartphones will also play a role. But the enterprise seems to be taking center stage. And given the areas Dell has of late invested in, that could be a good thing for its bottom line.
6. The easiest IT management offering will win
Dell seems committed to being a top IT-as-a-service provider, which can only be achieved by delivering the best and easiest to use tools at the best price. Consolidation is often panned by critics who want to see small companies get a fair deal. But when it comes to enterprise customers, using a service such as Dell’s-which combines multiple aspects of IT management, including a full-fledged security solution-is quite appealing.
7. It’s not the second choice
When Dell made its bid for 3PAR, the PC maker was met with competing offers from HP. It eventually lost the bid for the company, forcing it to choose Compellent, which was its second choice. But SecureWorks seems to be Dell’s first choice, which should indicate that the company knows what it’s getting and knows what it wants to do with SecureWorks’ services. That should give it the upper hand it needs to compete more effectively in the enterprise.
8. It could help the PC business
Make no mistake that Dell is always thinking about the impact certain deals might have on its PC business. After all, Dell is still a PC company at heart, with everything else second. Realizing that, by infiltrating the corporate world with SecureWorks and its other options, the company could see more firms adopt its PCs. The Halo Effect is very real, and it could benefit Dell quite heavily bit.
9. Changing the balance of power?
By making a significant play for the enterprise, Dell could be undergoing an internal shift in the balance of power. The company’s CEO, Michael Dell, is most capable at handling the PC market-the business on which his company was founded. But it’s debatable, given Dell’s recent financial performance, whether or not the CEO is capable of running his now multifaceted company. By acquiring Compellent and SecureWorks, one wonders if there is a shift in focus, and, thus, in the balance of power at Dell that’s causing its recent moves. If so, it could be good for the company.
10. It’s a battle with HP Dell might have a lot of competitors in several different markets, but HP is the single company that the PC maker should be most concerned about. Not only is HP tops in the PC space, but it also delivers a multitude of enterprise solutions that have proven extremely successful. With the help of SecureWorks, Dell is, at the very least, proving that it’s willing to do what it must to gain some ground on HP in IT services.