Dell’s Big Bang Theory: Grow Services, Support, and Storage

Dell’s Big Bang Theory: Grow Services, Support, and Storage

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Being the distant 3rd in the PC market is a hard place to be for Dell.

And now that Michael and Co. have wrestled the company back from shareholders, they are welcome to do what they please to grow or implode their current business model. And if we’ve learned anything in the last 10 years in the tech business, boxes and laptops are boring. The real money (just ask HP) is in services and support. All the other stuff big businesses buy in addition to their shiny new computers.

Today Dell announced the biggest tech purchase of all time. An unfathomable 67 billion dollars. That could buy a lot of companies or technologies. Heck, Dell could probably have bought Tesla for a lot less than that. But I digress. The deal is done. Dell has doubled down on technology just when top rival HP is splitting their business into two parts to gain more agility in the market place.

Dell has been in bed with EMC and their storage products for a long time. And now Dell can supply the end-to-end cloud computing solution that *maybe* their customers are clamoring for. At least, once the deal is done, Dell might rocket up the ladder in terms of size. But the profitability is the thing. And something we know very well, now, technology is changing quicker than most large companies can respond. And as the phones we buy become tiny computers, our enthusiasm for new laptops and even tablets begins to fade.

Dell hasn’t had much success in the phone or tablet market. And their new XPS hybrid pc at least shows they are still trying. But I’d guess the Surface-like computer idea is more novelty than necessity. Using a laptop with a touch screen is a pain, in my opinion. And the tablet is a nice third device, but not a must have.

So we will see, can Dell really switch from the low-cost leader in PC boxes to a global power in services, support, and now storage? At least they don’t have shareholders to justify the move to, only their large business customers.

John McElhenney
@jmacofearth (also seen on Google+: jmacofearth)

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This Post Has One Comment

  1. I have heard this theory in the past, and reading this article made me remember what I have uncover before. Thanks!

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