Dell pushing into services market

Michael DellThings appear to be improving for Dell since the return of its founder a few months ago. Since then, the PC giant has purchased gaming PC maker Alienware, introduced multicolored PCs, and is making a push into the most profitable sector in the computing market: subscription-based services. The new line of PCs from Dell, dubbed "Vostro" (latin for 'yours'), will not include trialware but will ship with 12-month subscriptions to its PC Tuneup and Online Backup services.

Dell 'Vostro' PCs target small businesses (CNN)

Dell is also bundling all new PCs with 3-10 GB of online file storage with upgrades up to 30 GB available. Services, currently only 10% of Dell's revenue, are the fastest growing part of the company whose stock has increased 20% since Michael Dell returned to lead the flagging hardware maker. Dell's shares will probably continue to increase in value as they recently announced plans to reduce their workforce by 10%, or nearly 9,000 employees.

Dell bundles free online storage with new PCs (Tech World)

Michael Dell tries to reboot Dell Computer (CNN Money)

Dell soars on job cuts, earnings (CNN Money)

The new offerings are targeted mostly at small businesses and as such do not directly impact me, but I am happy to see a company that I do a lot of business with making such efforts to improve its products. My shop is almost entirely stocked with Dell desktops and servers, and the recent moves haven't done anything to dull my enthusiasm.

How do you see the recent moves by Dell? Does Michael Dell have what it takes to keep his namesake relevant in a market that has seen several different leaders in the past 15 years? Can he re-make the company as Steve Jobs (who Dell has admitted talking strategy with) has remade Apple?


Dell should stop flooding the market with crap systems and totally wild promises. They are a total danger to the REAL IT specialist out there. Buy, use support dell at your own risk.

Andy Moon
Andy Moon

I make no secret that I admire Michael Dell. He made a powerhouse literally out of his garage and took it to the top of the hardware world. I was not convinced that his leaving would be good for the company, an opinion that seems to have been supported by the events of the past few years. The real question is whether Michael Dell is going to be able to continue to continue to grow his company in an incredibly competitive market. Will he be able to remake and expand his company or will Dell become the next Compaq?


Dell is coming to eat our lunch. They are installing a managed services software on all their outgoing boxes so they can remote in and cut you out of services. You're welcome Michael, for all the Dells we have been recommending. All the vendors use us to sell their stuff then stab the VARs in the back. Time to go back to white box and our own managed services. Otherwise Dell will be servicing everything you install in a business. Can you compete in price on services? I think not.

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