Dell moves into enterprise solutions, PC business will continue but will not be the focal point – Part 1

Dell, one of the biggest PC-making companies in the world, have started to digress from their primary business. According to the founder and CEO of the company, Michael Dell, the enterprise solutions are their new services portfolio. He clearly stated that Dell is no longer in the PC business.

Since the iPad has instigated a new computing culture in the technology world, PC business is having an uphill battle with tablets. Laptops are being shrunk to increase the portability coefficient. Latest technologies like the new Intel Ivy Bridge processors are becoming more convenient for tablets in terms of both size and energy-efficiency.

Observing the aforementioned scenario, the company is starting to adopt the post-PC era changes and the first step in that direction is to pull out majority of resources from the PC R&D and dedicate them to enterprise solutions like servers, networking and IT. There are many company that have shifted their from one area of interest to another, IBM being one of the biggest examples.

Dell even went on to say that with the new services portfolio the company is headed toward a “new Dell.”

“In the last five years, we really made a concerted shift to end-to-end IT services,” Dell said.

Dell did not hesitate in taking Hewlett-Packard’s name in this regard. He said that Dell is moving into the enterprise business like HP but unlike that company they do not have a lot riding on the enterprise business. Though they are spending billions of dollars in lifting the business from grounds up, the PCs are still their most profitable commodities and earn them billions in revenues every year.

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Posted by Usman Khalid on Jul 18 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.