Once the world’s largest maker of personal computers, Dell continues to shift its focus away from consumers and towards the enterprise. During the London and San Francisco launches of new Dell servers, storage and networking products, CEO Michael Dell underscored the company’s commitment to the enterprise market, telling guests at the San Francisco event, “We’ve transformed our business. We’re not really a PC company anymore. We’re an end-to-end IT solutions company,” according to InformationWeek.
Driven by the explosion in cloud adoption and growth of cloud infrastructure providers, Dell told CNBC that over the last five years the company has more than doubled the size of its enterprise business, to $18.6 billion, which represents almost half the company’s profits. He explained that enterprise sales represent a potential $2.75 trillion market, compared with the $250 billion consumer market. Accordingly, he said he was “a little bit more focused on the $2.75 trillion, as you might expect.”
Dell explained that many cloud infrastructure providers use Dell servers in their data centers and that the recently launched servers include features that make them easier to manage and capable of handling more complex workloads. The new PowerEdge servers launched last week include embedded server management tools that automate the deployment, updating, monitoring and maintenance of the server lifecycle.
But while the company may be following in the footsteps of other formerly consumer-focused technology giants like HP and IBM, don’t expect Dell to abandon its PC business altogether like HP tried last summer. As Arik Hesseldahl at All Things D explained, Dell likely learned a valuable lesson from HP’s misstep: that “having a large PC business gives a company like Dell the scale it needs to deal with component suppliers who are willing to give it good prices on parts like chips and hard drives and all the other things that go into building a server.”
What are your thoughts on Dell’s shift to the enterprise market? When buying servers for your company’s data center, which do you consider the most reputable suppliers?