Feeds

Dell: HP's PC exit is an opportunity, not a death knell

Without hardware, there can be no software or services

Internet Security Threat Report 2014

It doesn't want to buy out Hewlett Packard's PC business, but Dell is going to keep making and selling computers – Michael Dell told FT.com yesterday. Dell sees HP's surprise exit from the field as an opportunity for Dell rather than a harbinger of doom for the industry.

The Dell CEO maintained that hardware still matters and that his company is well-placed to take advantage of the new gap in the market:

Think about the scale economies in our business. As a company spins off its PC business, it goes from one of the top buyers in the world of disk drives and processors and memory chips to not being one of the top five. And that raises the cost of making servers and storage products. Ultimately we believe that presents an enormous opportunity for us and you can be sure we are going to seize it.

Nonetheless it looks as though Dell is covering all bets. His company has just spent $1bn on cloud computing infrastructure and is putting a much greater focus on business contracts and enterprise solutions, positioning its hardware division as an asset in creating the business solutions rather than a major revenue stream in its own right.

As the Dell CEO told the Irish Times during a recent trip to Dublin:

Hardware still matters. It’s the frontline of how you access the IT. Software’s great, we like software. Services are great, we’re doing lots of software and services. But infrastructure and hardware still matters and we’re very happy to be in the PC business. It’s not the only business we are in.

With HP out of the playing field*, Dell is now set to become the world's second largest PC manufacturer, behind Chinese giant Lenovo.

"Let's remember there are 1.5 billion PCs in the world today and Gartner says there will be two billion in 2014. We don't think PCs are going away," Dell told CRN.

"We think it is evolving - we believe in a three-device world. If you followed the Microsoft Build conference yesterday you heard about Windows tablets and Windows 8 and we think there will be a lot of very interesting form factors [to come out]." ®

Bootnote

Since the time of publication, HP has made moves to clarify its position in the hardware manufacturing market.

Secure remote control for conventional and virtual desktops

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.