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Dell Sees Future in Services

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100 Despite the pressures of the economic downturn and caution among most of its customers, Dell (s DELL) continues to see opportunity in its enterprise infrastructure and service business, Senior VP Paul Bell said at the Dreamforce conference today. He noted that Web 2.0, social-networking companies and other firms that are adding users need to scale up and are continuing to spend on infrastructure services, while financial services companies are trying to find ways to tighten analytics while paring down extraneous costs.

Bell said reports the company would shrink its manufacturing operations were speculation. But he said Dell’s ongoing move into providing infrastructure as a service is part of a business direction that will cut back on the more labor-intensive service model of the past, in favor of, for example, the remote support services the company now offers.

While the consumer market still accounts for just 15 percent of the company’s revenue, Bell said its existing laptop personalization features are going to expand to allow “true individualization” of the outside of laptops, but he wouldn’t give specifics. He hinted at other areas the company was looking at in PC personalization but didn’t give details, and he also declined to comment on the likelihood of a Dell phone.

But Bell did say the company doesn’t buy into the idea that consumers want complete convergence of Internet devices. Handheld and laptop devices won’t end up as one device everyone uses, he said, and the company is testing out whether netbooks in developed markets will end up complementing rather than replacing fullsize PCs. For now, that means the company is focused on larger screens and keybords rather than smaller devices.

3 Responses to “Dell Sees Future in Services”

  1. I write this in a constructive approach-
    The 2 key words here are:

    -“Remote support” in service.
    -“True Individualization”.

    My comment as a technologist:

    -“Remote Support” or any other terms need to be backed up by true essence. Service must be good to superior despite public appearance and corporate terminology. If Dell can truly provide good technical support, the technical staff behind the Dell’s service label must be refreshed with more competent staff, but this will goes with a price tag accordingly. Dell service has been assimilated with bad and frustrated service due to utilizing below par third party service (Dell had done enough investigation in trying to improve service in the past, but what was the answer?). Look at Apple, they demonstrate great direct Apple support at their best. Same with Sony and so on.

    -“True Individualization”…this term has been backed up by colored-laptop skin. The true potential for “individualization” must be aimed at the true satisfaction to consumer’s needs such as better technology in media/interface and true evolution of technology to provide a true/improving value added. This effort will come with a price tag to step up in leading edge technology, NOT by cost cutting and means of cooking accounting report. Colorful empty shell will not set Dell head of the competition.

    In conclusion, real improvement and advancement of Dell must come with a price tag. this will serve well in the meaning of such phrase: “to produce better revenue, we must spend money wisely”, that is to invest in people and research…real research.
    The CPU Scientist