UPDATED 13:53 EDT / NOVEMBER 17 2010

Dell Recovering after Hard Economic Times

At the moment, Dell is losing track on its dominance in certain aspects within  the cloud industry, placing Dell in recovery mode for the time being. In the last period, Dell lost the 3Par bidding war with Hewlett-Packard, and to make things worse, it has also been affected by the EMC’s acquisition of Isilon in the $2.25 billion deal.

In competition with leaders like HP and IBM on the notebook computing side, Dell  is doing well, although there is room for improvement. Unfortunately, Dell wastes precious time waiting for “a product class [to grow] so large that it was a pure commodity; only then would Dell consider entering the game and, by implication, rule it as it did the predominately desktop PC market at the time,” reports Forbes in a recent analysis of Dell’s current state.

“This thinking and the painfully long time it took Dell to learn it was wrong is precisely what led Dell down the wrong road and is the reason why Dell is still struggling to build a durable business model. In reality, what happened here was really simple; Dell created an operating model designed to support desktop PC’s and thought it was universally extensible. However, Dell eventually learned (to its credit) it was not extensible to even notebook PCs let alone to the consumer electronics market.”

One of the approaches toward recovering from the economic downturn is focusing on the creation of tablets for Android and Windows 7 Phone platforms, the mobile domain being able to offer Dell a chance in regaining its top position in IT manufacturing.  The Forbes analysis on what should Dell focus on at the time being is applicable to the current financial situation of the company.


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