Dell's new focus: Don't look back

TalkBack 5 of 10:

Next »

« Previous

• Thread View
• Flat View

JIT Supply Chain

Dell made it's bones by carrying no inventory, and this is a move the whole industry has followed. HP went as far as to poach Dell's supplier-squeezing CIO.

I agree HP (and IBM and Sun) make better machines,because they do R&D and that costs money. Dell always bragged about how little they spent, and commoditizing created a "Dell Effect" bringing all prices down to the dirt.

Now they are learning that IT is getting smarter, and has elevated expectations for technology and expertise from its vendors. HP, IBM and Sun still maintain engineering staffs. They know SANs, Networking and Virtualization.

When all you can counter with is cheap prices, your model won;t fly in an Enterprise. They may still sell 1P servers to the SMB market (and don't get me wrong, there is a lot of money to be made there, and Dell's competitors do not understand this space, leaving it up to the channel.

It's a complicated equation, but Dell needs to figure out that it can't be all things to all people. If they take the money they don't spend on R&D and dump it into support they can still be profitable. They may not get "marquee" accounts, but the margins are slimmer there anyway.

Posted by: JackPastor   Posted on: 03/07/07 You are currently: a Guest | Members login | Terms of Use

Alert moderator to an offensive message

Subscribe to this discussion via Email or RSS

SponsoredWhite Papers, Webcasts, and Downloads

• Why Isn't Server Virtualization Saving Us More? A Few Small Changes May Dramatically Increase Your Efficiency VMware Companies have rapidly adopted server virtualization over the past few ... Download Now
• Open Standards Technologies Provide the Ingredients for Delivering Security Across the Papa Gino's Enterprise Dell Papa Gino's Holdings Corporation founded by the entrepreneur operates one ... Download Now
• The True Costs of Virtual Server Solutions VMware In an economic environment that is repeatedly heralding the message "do ... Download Now