Sunday, July 3, 2011

Dell to Expand Data Management, Software to Cut PC Reliance


Dell to Expand Data Management, Software to Cut PC Reliance


Dell Inc. (DELL), the world’s second- largest personal computer maker, will offer software applications and more corporate-data management technology to reduce its reliance on PC sales, Chief Executive Officer Michael Dell said.
The company wants to build on sales of servers and storage systems by offering hardware and software to help catalog and locate reams of data, he said at an annual investor meeting today. Dell, based in Round Rock, Texas, also plans to step up its presence in smartphones and tablet computers, he said.
Dell is making acquisitions, broadening its offerings and hiring sales staff to expand beyond PCs and related products, which accounted for 70 percent of sales last fiscal year. The company seeks to offer corporate customers a more complete lineup of products to run technology operations, Dell said at a reception last night before the meeting in Austin, Texas.
I think that Dell made a smart decision to start offering software.  They're almost completely reliant on their PC sales, and as I noted in an earlier blog, PCs are starting to decrease in sales pretty consistently   Now that smart phones can do pretty much the equivalent, if not more, than PCs, they will begin to become outdated technology.  As we advance into the world of tablets and other forms of personal computers, the desire for a PC is dwindling.  Now everyone HAS a PC, and everyone WANTS a tablet. That "want" is what companies like Dell thrive on.  Expanding their inventory to include cutting edge software is the right move to keep the company afloat, especially since their attempts at creating a comparable smart phone or tablet has been unsuccessful in the past.
Stock Prices for closing 6/29/2011:
DELL: 16.42
AAPL: 334.04
LNVGY.PK: 11.07

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