Feeds

Dell embraces high-cost model with Alienware buy

Opens AMD shop

Build a business case: developing custom apps

In a bid to color up a dull computer line, Dell has agreed to purchase flashy PC maker Alienware.

With the buy, Dell gains a maker of high-performance systems aimed at gamers and other demanding customers. The often pricey Alienware boxes stand out for their colorful designs and high-end components. Dell officials earlier this month had downplayed rumors of an Alienware buy.

The deal also opens Dell up to AMD processors, although indirectly. Dell plans to let Alienware operate as a wholly-owned subsidiary with its own marketing, sales and support staff. The Alienware brand will continue under this arrangement.

"Alienware's products are an excellent complement to Dell's own line of high-performance computers designed for gaming, enthusiast and media content customers," said Dell founder Michael Dell. "In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals."

This purchase is a rarity for Dell, which loathes acquisitions.

Dell, however, has seen desktop profits stall in recent months, as it gets harder and harder to make money off the kit. Alienware opens up a way to make money off gamers and other horsepower hungry types that are willing to pay more for the latest and greatest gear.

In addition, the Alienware line will add some style to Dell's uninspired designs.

Dell did not disclose financial terms around the deal, which should close in the next two months.

One can't help but wonder if Dell is getting a bit desperate to reach its goal of becoming an $80bn company. This deal breaks the no acquisition and AMD barriers in a major way. The low-cost Dell religion seems to be giving way to market realities. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
You didn't get the MeMO? Asus Pad 7 Android tab is ... not bad
Really, er, stands out among cheapie 7-inchers
Apple winks at parents: C'mon, get your kid a tweaked Macbook Pro
Cheapest models given new processors, more RAM
4K video on terrestrial TV? Not if the WRC shares frequencies to mobiles
Have your say with Ofcom now, before Freeview becomes Feeview
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
YES, iPhones ARE getting slower with each new release of iOS
Old hardware doesn't get any faster with new software
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.