Dell Seeks Double Sales, 3PAR Loss Recovery Session
Dell has revealed that it will be increasing its pressure on data centers, which, with its clouds Business Server, the company expects to generate revenues and stimulate growth.
After having lost recently on a deal to acquire data center technology firm 3Par, it appears that Dell which lost to HP, has learned a valuable lesson. Right after the very public auction process and eventual high price for the target, Dell has changed tack, and has said that it would be more ‘patient’ in the future and steer clear of deals that could be seen as over-priced.
Dell produces fifty-five percent of their income, business and consumer hardware business, and even if the gains of late, is that these profits are used to finance acquisitions.
As The Register reports, Steve Schukenbrock, president of Dell’s large enterprise business, said in a press conference in Hong Kong last Thursday that the company was not necessarily finished acquiring IT services companies after the $3.9bn acquisition of Perot Systems in September 2009. In a report by Reuters, Schuckenbrock said, “Services expansion on a geographic basis is a priority. China is high on that list.”
Schuckenbrock further said that the demands for Dell services was also going back to pre-crisis levels as companies look to perform system upgrades that were put off in the past two years, said.
“I think a lot of spend we see today is a ‘spend to save’ mindset,” he said. “That is a substantial driver of the growth we’re seeing. It started in the third quarter of last year and I still see it at this point.”
Among those badly hit during the crisis, Dell and Lenovo Group Ltd were heavily reliant on corporate spending, the crisis as companies squeezed their technology budgets.
Dell’s got a few things up its sleeve to move past the 3PAR bid loss, and other areas. The manufacturer has been especially interested in the mobile arena, and is among the first to develop devices, namely tablets, for platforms like Android and Windows Phone 7. See here for more commentary from Dell CFO Brian Gladwell on the company’s thoughts on going private.
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