Dell's dog days of summer

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They had a good run

Dell had a good run, and nobody can say they did not change the industry. They MASTERED the supply-chain, build and configure to order, Just-in-Time Inventory and high-touch direct model.

Dell knows more about their individual customers than any vendor who primarily sells through channels.

Where they went wrong (a few reasons) was letting what little R&D they had go to Taiwan design houses. They failed to bolster their services end to the extend they could handle increasingly complex SOLUTIONS (like server consolidation, messaging, middleware, databases, virtualization etc.) HP and IBM can EASILY do that stuff.

Dell can sell cheap boxes - PERIOD ! When the purchasing department calls the shots, Dell wins. When the IT department needs partners who can deliver more than cheap, generic PC-level equipment, the calls go to IBM, HP and yes, even Sun.

Their dependency on Intel (and shunning AMD) put them out of the benchmark buisiness for three years. Watch for a HUGE about-face, even though Intel has caught up in the two-way space.

Posted by: JackPastor   Posted on: 07/22/06 You are currently: a Guest | Members login | Terms of Use

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