Dell sharpens focus on solutions

“Dell is an end-to-end solutions provider today as we continue to build out our data center, software and services capabilities,” Chairman and CEO Michael Dell said at the company’s 2012 analyst meeting today in Austin, Texas.


Inside Dell's federal government strategy

"We have changed the conversation we’re having with our customers. We are a solutions company first, vertically focused, and creating more value for customers with innovative offerings that provide competitive advantage,” he was quoted as saying in a company news release.

Dell also announced the company’s first dividend of eight cents a share.

The company intends to continue shifting its mix of operating income to Dell-owned enterprise solutions and services that scale vertically and horizontally with customer needs to address both its largest and smallest customers, Dell said.

Evidence of Dell’s solutions transition over the past 12 months includes acquiring eight companies providing strategic intellectual property for Dell’s growth as a solutions provider, creating a software organization, and opening 11 customer solution centers globally, the announcement added.

The company also has doubled the number of its engineers developing enterprise solutions and more than tripled the number of its specialists selling solutions over the past five years.

The result has been a shift in Dell’s sales to higher-margin data center solutions consisting of servers, networking, storage and related software and services, the company said.

The world’s third-largest PC maker plans to boost revenue from data-center products and technology services 45 percent to $27.5 billion by fiscal 2016, Dell said, according to Bloomberg News. Over that four-year period, PC- related revenue will climb 8.3 percent to $47 billion.

“The new dividend will keep investors satisfied during this transition period,” Brian White, an analyst at Topeka Capital Markets, wrote in a research report cited by Bloomberg News. “Dell’s strategy in the enterprise market is moving toward greater focus,” he said.

Dell Inc., of Round Rock, Texas, ranks No. 19 on Washington Technology’s 2012 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.