Re: Good Move
Phoenix
3/20/2012 4:26:21 AM
You are right about that @TelecomFreq. It is not a good idea to rely on just one source for everything in most instances. And in some cases companies who try to offer too much with too many different products and services might end up not being good at any of it. Specialization has its own set of advantages.
@Phoenix, that might be the case with small businesses, but there is something to be said for technology diversity, you never want to have all your eggs in one basket, not in investing or in your network ;-)
Re: Good Move
Phoenix
3/19/2012 9:15:11 PM
It is good that Dell is trying to become a full service provider. Customers would be interested in getting the full package from one service provider rather than having to deal with several.
Given the Dell producs I have had experience with I would say they are fitted for the small and medium businesses, I could not see their producs deployed in a large business or at the service provider or carrier level, they just do not seem to be evolved enough at this point.
I'm sure lots of people want to know ;-)
Re: Good Move
ProfR
3/19/2012 4:38:52 PM
It will be interesting to see where Dell ends up. It is clearly moving from a hardware company into a more full service provider (software, services, computers, storage). These are higher margin businesses. But does Dell have the expertise to sell and support this?
Yes, this deals helps fill out the enterprise product portfolio. It makes strategic sense. But it's so small that it won't move the needle much because Dell's FY13 revenue estimate is more than $62 billion.
I think this is a good move for Dell. They need to improve the offerings they have to provide more values to the customer base. As servers become more and more commoditiy like, services become the differentiator. Security is one of these almost " must have" services. I think Dell is slowly getting back on the right path.
So Rob how well do you think this acquisition will help Dell meet its new strategic objectives -- that is, to boost profit margins by becoming more of a one-stop shop for business customers with more products in the areas of security, storage and cloud computing and less dependent on its PC business?
Security is a critical area
ProfR
3/19/2012 8:09:47 AM
IT Security is a critical area for enterprise customers. However there are issues with providing products mainly to smaller companies. One issue with serving smaller customers is that they do not like to spend for "insurance" - tough to convince them to buy in areas like security because something might happen someday. They often have small budgets - so you need security equipment and services that fit here and can scale as they grow. They also do not have large IT departments so they require equipment and services that are easy to install and support.
Will be interesting to see how Dell grows this revenue.
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