Dell: "No longer a PC Company"

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Yep, you read that right.  According to web site ‘The Verge‘ the company that has been known for its PCs is getting away from its roots, and turning its attention to the enterprise.

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“Dell looks like it’s going to be shifting its focus to enterprise and away from consumer PCs. Brad Anderson, president of Dell’s enterprise group, said today that “we’re no longer a PC company, we’re an IT company,” according to PC Pro. He continued on to say that “Dell’s changing very quickly,” and that “it’s no longer about shiny boxes, it’s about IT solutions.” Dell’s most recent earnings would appear to back up the claim that enterprise is where the money is at — 30 percent of the company’s overall revenue last year was accounted for by that single division, and the group brought in 50 percent of the company’s operating income last quarter.

The shift away from the low-margin consumer PC area to enterprise is nothing new for major computer manufacturers. IBM famously sold off its legendary computer line to Lenovo in 2004, and HP — the world’s largest PC maker — considered making a very similar move last year. However, it doesn’t sound like Dell will make quite as dramatic a move as IBM did — Anderson said that the company would continue to invest in PCs, citing the success of its premium XPS line of consumer laptops and desktops.”

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Dan Uff

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