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Dell is experiencing normal growing pains as it transitions from a high-volume hardware manufacturer to a more comprehensive services and solutions company, according to Krista Macomber, computing practice analyst at Technology Business Research.
"Dell is successfully increasing its contribution of solutions to the revenue mix, but financial performance during 1Q12 indicates some challenges in increasing enterprise market share," Macomber wrote in a report on Dell's earnings. "The enterprise revenue decline is not yet a significant threat to Dell's strategic direction. Considering Dell's expansive existing install base and go-to-market know-how within the midmarket, Dell's midmarket customers are adopting its solutions and services ahead of enterprise sector customers."
To ensure strengthened execution on core enterprise solutions growth initiatives, Dell will continue to refine its go-to-market strategy," wrote Macomber. "Competition from rivals such as HP and IBM will remain strong, but adapting to longer and more complex sales cycles with enterprise customers and focusing on selling integrated solutions rather than singular pieces of the infrastructure will help Dell to win more deals and increase its market share."
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