Dell's path to transformation

Through a focused acquisition strategy, Dell moves toward becoming a broader provider of technology solutions and not just a PC maker.

Its acquisition strategy is focused on picking up players in growing segments of the market to become known as more than a PC and server maker. In the government market that translates into Dell being an alternative choice in areas such as security, storage and mobile technologies, according to Joe Ayers, vice president and general manager of Dell Federal. The changes have helped the company maintain its strong position in the market and put it in place for more growth when the market turns in the coming years, he said. For the 2012 Top 100, Dell is ranked No. 19 with $1.9 billion in prime contracts during the government’s fiscal 2011. “It was a good year, not a great year,” Ayers said. “We experienced challenges like everyone else.” With customers looking to weather reduced budgets and doing more with fewer resources, Ayers said Dell’s focus has been on value. “It really fits with Michael [Dell’s] manta to provide the solutions our customers are looking for,” he said. One example is Dell’s acquisition of Force10 Networks last August, which brought Dell more networking capabilities for data centers and cloud networks. “There are certain companies that dominate that market, but now we can bring a competitive price to performance ratio, and federal customers are looking for alternatives,” Ayers said. At the same time, Dell faces challengers of its own in its traditional PC and server markets. “We certainly get attacked on clients and servers,” Ayers said. “In hardware, you have to win net new business every year, but that’s a good thing for the government and I’m not afraid of competing on value and price.” On both its hardware and services sides, Dell is focusing on opportunities around IT efficiency, mobile computing, cloud computing and security. For example, it’s working on projects with Veterans Affairs and the Army Corps of Engineers to virtualize client systems. “We are using our solutions and services to move them into the virtualization era,” he said. “It is not just about selling client systems to them.” The recent acquisition of Wyse Technology will help as Wyse brings Dell more thin client technologies, Ayers said. Two current competitions that Dell is deeply involved in are the Navy’s Next Generation Enterprise Networks and the Air Force NetCents contracts. Dell is part of the Computer Sciences Corp.-Harris Corp. team that is taking on incumbent Hewlett-Packard Co. for NGEN. For NetCents, Dell is a prime on the hardware contract and subcontracting on the services portion. Whatever contract Dell pursues it has to contend with the larger role that price plays in procurement decisions today, Ayers said. “My fear is that it is going to be a price-only shootout,” he said. “More scrutiny on pricing is good, but if it is just low price, you don’t get the value.” Dell tries to emphasize the importance of total cost of ownership. “We like to see that baked into procurements from the start,” he said. Security is another area that needs to be considered upfront in developing and awarding contracts, Ayers said. “If you don’t weigh TCO and security, it can cost you more in the long run.” Budget pressure are expected to increase. “Nothing has really been cut yet, so when that happens, it is just going to be tougher on our customers,” Ayers said. The result for contractors will be more competition for fewer dollars. “We have to be aggressive and make sure we are providing a great solution at a good price,” Ayers said. “And we have to execute well.”

As much as any government contractor, Dell Inc. has been on a transformation path the last few years.













































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.