What it means: Michael Dell is one of the few technology CEOs who has stuck with a single message throughout his company's history: Be Direct. He believes it's those direct relationships with customers, suppliers and partners alike, not to mention an efficient manufacturing system, that lets the company drastically reduce costs and wage price wars. It has placed Dell near the top of the turbulent PC industry. What's more, Dell believes that his company's direct model is applicable beyond the world of PCs to include printers and even IT services. His reasoning is that as technology evolves, customer preference for direct relationships, standards-based systems and services, and a superior experience only grows.
VARBusiness' View: Although he's not exactly been known as a friend to the channel, the proof is in the numbers. No matter how you slice it, there's something to be said for Dell's efficient business model, which has kept the company growing and profitable during a time when other manufacturers are bleeding cash. But is Dell really the all-direct company that it purports to be? No, but that may be part of the plan. Dell, for example, now has a new program to sell PCs through white-box suppliers. And it's likely to continue pushing into the lucrative services market through acquisitions, like the recent purchase of Plural, as well as organic growth. Dell's genius may not be the all-direct model that made his company great. It may be the efficiencies that such a model helped create. If Dell achieves those in other parts of his empire, watch out: That will set Dell apart.
Paul Curlander, Lexmark
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