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Michael Dell: We're Not a PC Company Anymore

By - Source: CNET | B 41 comments

Dell has shifted its focus to end-to-end IT services, the company's CEO said.

For a long time, we kept hearing "Dude! You're gettin' a Dell!" spewing from TV commercials, and honestly, it was rather catchy despite being a little annoying in the process. Now we don't hear anything of the sort from the once-dominant PC company. Oh that's right: Dell isn't a PC company any longer even though a slight majority of its revenue stems from the PC sector.

CNET reports that Dell founder and CEO Michael Dell reportedly talked about everything but the PC sector during a conference hosted by Fortune on Tuesday. He covered corporate servers, storage, networking, security and IT services. In fact, he publicly admitted that his company has made a concerted shift to end-to-end IT services over the last five years. The days of Dell being a PC-focused company, it seems, are over.

This is the "new Dell," he told conference attendees. It's a company shifting away from the PC sector as the industry supposedly moves into the Post-PC era. A majority of Dell's research and development -- not to mention billions of dollars in acquisitions -- has focused on transforming the company. Dell has also made the transition without the burden of a lot of older legacy businesses, unlike rival Hewlett-Packard.

Still, Dell is "entrenched" in the PC sector nonetheless. Currently it's #4 in PC shipments, averaging 10.7-percent of the market, down from 12.1-percent just a year ago. Dell still plans to compete in the consumer market, taking on Apple both in the PC and tablet sectors. The company is lined up to be one of the first companies to produce a Windows 8 tablet later this year, but don't expect Dell to fight Lenovo or HP to be the top-most PC player.

Dell told the conference attendees that the new company's growth stems from securing devices like iPhones and iPad tablets -- devices which fuel Apple's growth -- and allowing those devices to work with corporate systems. He also said the company was starting a $60 million venture fund devoted to storage.

"It's an enormous opportunity," Dell said. "Storage has been a huge area for us."

He added that one major area of growth has been China. The company has a large presence in mission critical systems, and even around 60-percent of the country's internet runs through its servers. China is the largest market outside the States for the company, yet sales growth is slowing, causing concern for not only Dell, but many other companies as well.

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Top Comments
  • 26 Hide
    sacre , July 18, 2012 1:12 AM
    "Post PC" I don't know. Logically speaking, everyone will always want a PC that is at home. Something they can sit down, have a coffee and use at the home office for work, or just for gaming. Holding a tablet or using a small laptop will not satisfy.

    Desktop PC's will not be leaving any time soon, until we come up with a viable replacement and so far, tablets (I have 2, Android and Ipad 2) are just good for here and there.
  • 23 Hide
    tomfreak , July 18, 2012 1:42 AM
    a Monitor company I guess?
  • 22 Hide
    p05esto , July 18, 2012 2:29 AM
    PCs are NOT going anywhere, these nuts who keep saying that are not real computer users. Any professional needs a good chair and desk to do their work. You also need a good keyboard to type on, there's no alternative to the keyboard. A professional also needs a large display for video editing/programming/retouching/graphics/trading/etc etc etc. So that leaves us with what is powering these things? Well, a computer of some sort....maybe we plug into a tablet or whatever, but the monitor/desk/chair is going no where.
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    Display all 41 comments.
  • 26 Hide
    sacre , July 18, 2012 1:12 AM
    "Post PC" I don't know. Logically speaking, everyone will always want a PC that is at home. Something they can sit down, have a coffee and use at the home office for work, or just for gaming. Holding a tablet or using a small laptop will not satisfy.

    Desktop PC's will not be leaving any time soon, until we come up with a viable replacement and so far, tablets (I have 2, Android and Ipad 2) are just good for here and there.
  • 23 Hide
    tomfreak , July 18, 2012 1:42 AM
    a Monitor company I guess?
  • 21 Hide
    dogman_1234 , July 18, 2012 1:45 AM
    Computers will always ber personal. Thanks to Shockley, IBM Engineers, Jobs, Gates, Linus, and the Many who defined the computer in the 20th century. The computer will always be here, always personal.
    Desktops will become servers to operate our houses, keep our data for our laptops, smartphones, and tablets.

    I cannot see a Post-PC era...unless the successor to the computer itself comes around.
  • 22 Hide
    p05esto , July 18, 2012 2:29 AM
    PCs are NOT going anywhere, these nuts who keep saying that are not real computer users. Any professional needs a good chair and desk to do their work. You also need a good keyboard to type on, there's no alternative to the keyboard. A professional also needs a large display for video editing/programming/retouching/graphics/trading/etc etc etc. So that leaves us with what is powering these things? Well, a computer of some sort....maybe we plug into a tablet or whatever, but the monitor/desk/chair is going no where.
  • 6 Hide
    Anonymous_26 , July 18, 2012 3:29 AM
    Quote:
    Now we don't hear anything of the sort from the once-dominant PC company.


    Meh you don't have to advertise when people are dumb enough to buy your product no matter how shitty it may be.
  • 4 Hide
    thor220 , July 18, 2012 3:56 AM
    halcyoni disagree. A nice hologram would work fine. ...in 100 years I doubt anyone will be using a keyboard.


    You watch too much scifi channel. Just because t.v producers think that the future is holograms, does not make it true. They have keyboards similar to a hologram already and they are not that good. You don't get the feel of a regular keyboard and it makes mistakes often. They keyboard will stay, but in 100 years will be alot more advanced.
  • 8 Hide
    husker , July 18, 2012 4:26 AM
    Thanks for letting me know, Mr. Dell, I almost placed an online order for a new laptop with your company! Thank goodness you let me know, so that I can go find an actual PC Company with which to do business.
  • 0 Hide
    rbagany , July 18, 2012 5:39 AM
    for real...
  • 2 Hide
    kristoffe , July 18, 2012 5:45 AM
    dell just wants to steer away from making kmart pc computers only. they like the cloud, huge power system clusters. good for them. this in no way makes a real modifiable pc extinct. douchebags have been stating that since the mid to late 80s. 30 years strong...
  • 0 Hide
    sonofliberty08 , July 18, 2012 6:59 AM
    my own build desktop are 10 times better than yours DELL
  • 2 Hide
    wesleywatson , July 18, 2012 7:35 AM
    Obviously the response on this site is going to be biased, because we're power users who build our own desktops. But most people are not buying desktops anymore, they're buying laptops and even tablets. This is pretty obvious if you look at any sales data, commercials, or real life people. It seems like people are getting all uppity at the mention of the 'post-pc' era, as if they're going to have their desktops forcibly taken from them. Desktops simply aren't hot anymore and aren't selling like they used to. People are focusing on mobility, that's where all the money to be made is.
  • -1 Hide
    master_chen , July 18, 2012 8:09 AM
    Quote:
    Dell: We're Not a PC Company


    HaaaaahahahahahahahHAHAHAHAHA!!! (c) ASUS, Samsung, Sony, HP, Apple
  • 2 Hide
    s997863 , July 18, 2012 8:42 AM
    wesleywatson nailed it.

    I don't like the way things are going but I can't deny this is the reality today. most people aren't making intensive PC file-management, docuement-controlling, data-analyzing tasks. They won't feel the inefficiency while working e-mails on outlook from a tablet on a recliner chair.

    More importantly, the owners, entrepenuers, managers .... etc who are making the big money and the decisions will almost never be doing any intensive PC task. Or they'll have secretaries or underlings to prepare their stuff. That's grunt work, even if the worker is called an engineer. So the moronic bigwigs will force a new unproductive Windows/Office upgrade on the power-users right on MSFT's schedule. They'll waste money forcing widescreens or tablets onto the workers. The workers will find their tasks more tedious but have no choice but to continue. Right now my office rig is running a recently installed win7 with filesearchEx, FreefileSync, ClasicShell, 7zip ... etc.
  • 6 Hide
    MarioJP , July 18, 2012 8:48 AM
    but but you need a computer to update your tablet's firmware properly lol.
  • 5 Hide
    Anonymous , July 18, 2012 9:52 AM
    Well I think people are looking for a do all piece of hardware that replaces the PC. So far the tablet and smart phone have only partially filled that want. The real problem for the PC makers is that their is not a segment of the World looking to expand into PC's. Just as China is now buying more automobiles for the first time which is creating a huge growth for auto makers. The PC industry is now going from a expansion phase to a replacement phase. Tablets have huge growth to some extent because they are new and are growing a market.Eventually the tablet market too will slow. People are not ditching their PC's, they are simply adding tablets and smartphones and replacing their PC's when they need to.
  • 0 Hide
    delazaren , July 18, 2012 10:32 AM
    halcyoni disagree. A nice hologram would work fine. ...in 100 years I doubt anyone will be using a keyboard.

    while I do plan to live for another 100 years I'm sure something will stop me.
  • -3 Hide
    master_chen , July 18, 2012 11:10 AM
    mariojpbut but you need a computer to update your tablet's firmware properly lol.


    >: )
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