Michael Dell: HP's confusion presents opportunity for Dell

Michael Dell: HP's confusion presents opportunity for Dell

Summary: HP has potentially handed competitor Dell a huge opportunity to get ahead in enterprise computing solutions and services.

TOPICS: Browser

Photo: CNET

SAN FRANCISCO -- Hewlett-Packard's uncertainty and confustion is unquestionably an advantage for Dell Computers, according to the company's founder and CEO Michael Dell.

"It's a great opporutnity for us to describe to our customers and our potential customers our commitment to what we do, [and] investments that we're making within inside our business," said Dell while speaking at the Web 2.0 Summit on Tuesday morning. He added that Dell Computers has approximately 100,000 partners, and that pool is growing very quickly.

"You think about the enterprise customers. These are customers that think about what's going to happen in a year or two," Dell explained. "That sort of thing erode their confidence very quickly."

Touching back on some of the points he made during his keynote address at Oracle OpenWorld 2011 a few weeks ago, Dell stated that his company evolved from "a product company to a services and solutions company."

"If I look at our relationship with companies that make airlines, most of our business with them is not products anymore, but services," Dell said, adding that shift has taken approximately 15 years.

Taking healthcare as an another example, Dell said that a decade ago, salespeople likely would have gone into hospitals trying to sell "shiny new servers." But new servers are not what healthcare organizations are more concerned with, Dell posited, but rather what those servers are going to do for the business.

Dell boasted that Dell Computers is now the number one provider of healthcare IT services in the United States.

"There's an enormous opportunity to use all this data for better outcomes," Dell explained. "Having standards and having a common way to archive is actually a very simple thing."

Dell asserted that this strategy is working and his company has positive earnings, but he acknolwedged that there's still a lot more work to do.

Another key to Dell's strategy -- which could be construed as how Dell is trying to one-up HP as well -- is to help customers manage end-to-end solutions for its end users. That becomes especially more important as employees bring client devices (i.e. tablets, mobile phones, laptops, etc.) to work.

However, building those consumer mobile devices is not something that Dell Computers will be focused on as dearly as other services.

"Right now it's an iPad market," Dell argued. "The Android stuff has not done fantastically well. I think I'm being fair."

The primary challengers are Android and Microsoft, and Dell thinks that Microsoft has a pretty good chance with Windows 8. But Dell acknolwedged that Android is doing very well in handsets.

Nevertheless, don't plan on seeing Dell spin out its consumer sector, the smallest area in Dell Computers, much like HP might be this year.

"We're completely committed and we're not going to change our minds about that. I'm sure about that, by the way," Dell affirmed.


Topic: Browser

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  • Dell have got their head screwed on.

    The difference compared to HP or IBM is so striking. I even like where they say they won't be spinning off the consumer sector. Pretty wise - every company person is also a consumer 16 hours a day. Let the consumers know they are important - everyone is part of the economy.
  • Hardly; Dell has always made JUNK

    They need to learn about quality. Sadly they will not and their slipping marketshare is evidence of that.
    • RE: Michael Dell: HP's confusion presents opportunity for Dell


      All too true. And when a company makes junk, the customer support becomes even more important, and Dell's CS is the WORST I have ever encountered. CS "reps" in India somewhere, cannot speak or understand english, you get bounced around between departments until "oops", you mysteriously get disconnected. Your willingness to jump back into this Dell support nightmare is greatly diminished by the incredible frustration and all-too-obvious random switching between departments until you either give up or get disconnected. I will NEVER deal with Dell again, not even in they were the last supplier of a component I needed.
  • RE: Michael Dell: HP's confusion presents opportunity for Dell

    Michael Dell would be belivable if Dell actually took action. My last HP was almost the perfect PC. By comparrison, the Dell I have now (despite how smoothely it runs) feels and looks fairly cheap compared to my old HP product. If Dell is truly serious about taking HP's place they need to wrap their equipment in attractive higher-grade materials.
  • RE: Michael Dell: HP's confusion presents opportunity for Dell

    A pretty wrapper? Really? Attractive packaging will bring in the unknowing consumer, but it is the long term reliability that increases a customer base. If what you said were true, you could strip the body from cars such as: "Trabants, Zils, Lada's, Zaporozhet's and Volga's and replace them with super swoopy sheetmetal and expect them to rush out the showroom doors. If pretty is your litmus, you must be prepared to get burned.
  • Michael Dell's Confusion Presents Opportunity for Everyone Else

    While Mr. Dell pontificates about philosophical elements, he should look at his own company. Where has it gone under his leadership besides backwards?
    What is Dell's ranking in the PC business? Down.
    What is Dell's Smartphone like? Maybe it's a pay phone on a corner.
    What is Dell's Tablet like? It must be the size and shape of an aspirin tablet. No, make that 2 aspirin tablets.
  • RE: Michael Dell: HP's confusion presents opportunity for Dell

    I've bought several Dells over the years, for personal use. The last one was 4 1/2 years ago and it will be the last.
    They're still working, but I agree with above comments on junk components.

    The worst aspect is that these often come as useless expensive options that are hard-sold. For example a Modem card with no fax software (why else would an individual buy a modem card?), "Full" soundblaster software that turns out to be an expensive skin, DVD drive that can't record properly (optical media are notoriously unreliable, so Dell should know that we need good stuff here).
    Daddy Tadpole