Dell's evolution fueled by acquisitions

The company is using acquisitions as a critical strategy for creating a more solutions-oriented business model.

To understand where Dell Inc. is headed in the government, just look at the acquisitions the company has made during the past 18 months.

The obvious one, of course, is the Perot Systems acquisition in November 2009.

“That was a huge step to add capabilities to be a prime on certain contracts,” said Frank Muehleman, vice president of Dell’s public and large enterprise business.

Perot brought systems integration and outsourcing chops that Dell lacked.

But it is the eight acquisitions in the last 12 months that are perhaps more telling of the role Dell envisions for itself. The company has acquired companies that provide virtualization, storage, data center, and cloud computing.

“If you look at these it might seem like a hodgepodge, but they support three towers of capabilities that our customers are telling us are important to them,” Muehleman said.

Dell’s public sector business reached the No. 15 spot on the 2011 Top 100 with $2.2 billion in prime contracts.

The so-called hodgepodge of acquisitions includes the purchase of KACE, Exanet, Scalent, Ocarina Networks, Boomi, Compellent Technologies, Insight One and SecureWorks.

The deals are helping Dell build products and services around three capabilities:

  • Intelligent data management.
  • Next generation data centers,
  • Next generation end-users,

The idea is to marry products and services to deliver a cost-effective solution that addresses a customer need, said Richard Pineda, vice president of Dell’s federal government services division.

“This business has always been about head count and staff augmentation, but with today’s funding that’s not a choice,” Pineda said.

And for Dell to play more of a roll as a solutions provider, it is becoming more vendor neutral, he said.

“The change at Dell is enormous,” Muehleman said. “We are integrating these new capabilities from the acquisitions and our customers are changing dramatically as well.”

The government market used to be about procurement. The IT shop would say, this is what I want and procurement would go get it. “Then it migrated to the CIO, who were setting standards and putting in controls,” he said.

Now it's the agency heads, the combat commanders and program managers. “They are saying, I want the ability to do X,” Muehleman said. The ability they want isn’t a faster desktop computer. “They want things like secure end-user computing or secure access to their data from any device and any time,” he said.

Dell’s business now falls in three broad categories: traditional hardware sales, outsourcing and project-oriented services, Pineda said.

“The challenge is that they all have different sales cycles and delivery times, but it is working today and we are very excited about it,” he said.

“It is a complete transformation of how we do sales,” Muehleman said. “It is about understanding the customer and talking about vertical solutions. The sales process becomes more consultative and more about expertise.”

Dell plans to continue its transformation toward a solution based company. Acquisitions will be a part of that strategy. Although, on their face, some deals may not seem directly applicable to the government market, any acquisition will have an effect across multiple markets, Muehleman said.

“The acquisitions are all linked to those three domains – managing storage, the data center and the end-user computing environment,” he said.

The company brought in Dave Johnson from IBM Corp. to be the company’s senior vice president of strategy. He is the lead on the company’s acquisition activities.

“If you aren’t changing and adjusting and transforming yourself, you become irrelevant,” Muehleman said. “You have to adjust to the needs of your customers. Successful companies do that.”

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.