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How well is Dell positioned for the future?

How well is Dell positioned for the future?. Services and production of bigger devices used in data centers — E.g server computers, storage and networking equipment, constitutes Dell’s Future The company has changed since the return of Michael Dell as Chief executive in 2007.

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How well is Dell positioned for the future?

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  1. How well is Dell positioned for the future? • Servicesand production of bigger devices used in data centers —E.gserver computers, storage and networking equipment, constitutes Dell’s Future • The company has changed since the return of Michael Dell as Chief executive in 2007. • Objective: was to change the perception of Dell as a PC company as it was 10 years ago - to an Enterprise involved in the core of information technology, into Data center.

  2. Services • A Service Oriented Company • 44,000 of the company’s 103,000 Employees are in its Services Business. • According to Gartner, Dell is No.1 provider of health technology services, with the purchase in 2009 of Perot Systems (a large health consulting and services business) • Services is a $7.7 billion a year business for Dell, 12 percent of our total revenue. • Supplier of Hardware To Skills and services provider with acquisition of Perot Systems (3.9 billion dollars) • E.g. Storage of 4 billion medical images to take burden of hospitals.

  3. FUTURE: cloud model • Mr. Dell said in a recent interview that “ the opportunity lies in mixing hardware, software and services, to automate the business by providing more services as Web-based offerings, delivered remotely from our data centres in what we call the cloud model”. • However, Mr Dell still a Hardware guy and our software business still reselling other company’s Software products.

  4. Potential New Market • Midsized business sector • Strategy : to grab businesses by offering services to midsize businesses that are not a priority to our traditional competitors (IBM and Hewlett-Packard) • Their business model targets large corporation. It is highly costly. • Dell’s strategy start showing sign our business is becoming an increasing FORCE in the services business even though we don’t hold a strategic position in software.

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