HP targets Dell with rapid fire FUD campaign

HP targets Dell with rapid fire FUD campaign

Summary: Well that was quick. Dell announced its plans to go private 9:20 a.m. EDT and by 11:18 a.m. HP was aiming to poach customers.

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It took HP less than two hours to launch its fear uncertainty and doubt campaign on Dell, which announced plans to go private on Tuesday.

In a statement, HP commented on Dell's leveraged buyout plan:

Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell's ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell's customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity.

Now Dell would obviously disagree, but HP has to relish not being on the receiving end of these campaigns. IBM has taken advantage of both HP's corporate turmoil and Oracle's acquisition of Sun.

As noted earlier, Dell will face statements like this on the PC, server and storage fronts. How Dell responds in the market place will be worth watching.

Carter Lusher, an analyst at Ovum, noted that Dell will face a lot of uncertainty from customers and rivals will look to pounce.

Dell is in the midst of a wrenching transition from a supplier of commodity hardware, mainly traditional PCs, to being a supplier of enterprise-grade IT infrastructure. Dell’s ambition is nothing less than offering the entire IT stack with supporting services. A significant risk likely to face Dell during this transition is that enterprises and public sector organizations cut back on their purchases "until the dust settles."

Topics: Data Centers, Dell, Hardware, Hewlett-Packard, Servers, PCs

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9 comments
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  • HP

    Doesn't HP have problems of their own? How about support your products longer than 2 months? (touchpad)
    EVHGameOvR
    • don't forget

      WebOS. I thought they had a good strategy going for it, then dropped it before results could be come in.
      Spats30
  • HP - Pot Calling the Kettle Black?

    As EVHGameOvR pointed out, HP may hold the record for abandoning a product (Touchpad) and has had a succession of false starts/flops/and financial blunders continuing even under Ms. Whitman. Better be careful of that reflection in the window...
    dksmidtx
    • Right

      As a corporation I would much rather look to the smaller Dell which is investing heavily on the Services side to grow and which just came unshackled from Wall Street.

      As opposed to HP which bought a huge services company and demolished it and is generally a disorganized mess.
      SlithyTove
    • And...

      ...they're carrying a lot of debt from previous acquisitions (to include some highly dubious ones).

      But they do have a point and if I were in Michael Dell's shoes, I'd insist that I and my partners use cash only; if that means that a minority of the shares are still publicly traded, then so be it.

      And if I was a multi-billionaire with money to invest, I couldn't think of a better place for it than a company I founded and lead.
      John L. Ries
  • Go HP GO!!!!

    F-You Dell. Hope you go out of business sooner rather than later.
    itguy10
    • I will bet you HP goes out of business, not Dell

      I think you're using your money to back the wrong horse.
      Challenger R/T
    • Well Dell has nothing to lose

      while HP has. Because HP is haunted by bad investments, and purchases including Palk/WebOS and quickly abandoning it, Autonomy etc. And is chased by Lenovo. Since Dell is no more publicly traded company, Wall Street gurus won't care and media wont jump on it with their useless rants and Dell could easily show middle finger, where HP doesn't have that luxury. Right now Dell has responsibility to its lenders and customers, not every tom and dick like you.
      Ram U
  • Squabbling Microsoft OEMs

    In this time of crashing Windows sales, when all hands on the Microsoft ship need to pull together to keep away from the rocks, it's sad to see them sniping at each other like this. It just reinforces the conclusion that fragmentation of the multitude of Windows platforms has progressed to the irreversible stage, all we can do is watch the wreck happen in slow motion right in front of our eyes.
    ldo17