Dell Shifts Focus from Consumer to Enterprise Business
After spending decades focusing primarily on the consumer market, Dell is switching teams and changing its primary focus on the enterprise IT sector.
The news arrives after Dell posted its full-year results, revealing a substantial growth in enterprise while it struggled to maintain positive sales in the consumer sector.
While speaking at the launch of new enterprise hardware at an event in Twickenham, West London, Brad Anderson, president of Dell's enterprise solutions group, stated that Dell is no longer a PC company. Instead, it's now an IT company.
"Dell's changing very quickly," he said. "We are dramatically changing the make-up of our business. It's no longer about shiny boxes, it's about IT solutions [that let companies drive efficiencies]."
Earlier, Dell said that its recent full-year results stemmed from the success of a business-focused strategy. The company saw increases in both operating income and revenue thanks to record sales on the enterprise side. Dell also admitted that 30-percent of sales and 50-percent of profits were due to enterprise solutions and services.
Meanwhile, consumer revenue in 4QFY11 alone was $3.2 billion, a 2 percent decline. Dell reported that operating income was $39 million or 1.2 percent of revenue, a 43 percent decline. Revenue weakness was largely concentrated in the United State, the company said.
"Our customers think of Dell in much broader terms now, trusting us with their comprehensive IT needs, from the data center to the device,” said Michael Dell, chairman and CEO, last week. "We are more committed than ever to both developing and investing in innovative solutions that deliver greater value and better outcomes for our customers."
Anderson told event attendees on Monday that Dell's strategy is the right one, and that the company expects to make more acquisitions in the near future so that it can extend its enterprise reach.
Kevin Parrish is a contributing editor and writer for Tom's Hardware,Tom's Games and Tom's Guide. He's also a graphic artist, CAD operator and network administrator.