EMC World: Michael Dell Says Dell-EMC Is Gaining Ground Against Shrinking, Less Innovative HP


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Dell Inc. Chairman and CEO Michael Dell on Monday used his EMC World keynote address to attack rival Hewlett Packard, saying his company is stealing market share from an HP that produces less revenue, less innovation and less investment in R&D.

Dell accused Hewlett Packard, which split into HP Inc. and Hewlett Packard Enterprise last November, of slashing R&D spending at the expense of innovation.

"They're getting smaller, they're separating their edge from their core with far less revenue, less innovation, less investment in R&D, less software, a smaller supply chain and losing share in each of their businesses to Dell," said Dell.

[Related: EMC World: Tucci Passes Torch To Dell]

Dell's shot at HP came while his company is in the midst of acquiring storage market leader EMC in a $60 billion deal -- the largest in IT history.

Dell said its clear "who's winning and who's losing" from market share data. He pointed to PC market share data from researcher IDC that shows Dell's client business in the United States grew 4 percent year over year in the first quarter, while HP's declined 14 percent. Dell gained 2.5 points of market share in the quarter, while HP lost 2.4 points of share, according to IDC.

The stats Dell cited put his company on top of the U.S. PC market for the first time in more than six years. That success came despite overall market declines. According to IDC data, the U.S. PC market shrunk 6 percent in the first quarter. The worldwide PC market contracted 11.5 percent in the same period.

"You can't shrink your way to success -- that's not even a real thing. But [HP is] doing it," Dell said.

"We're going in the opposite direction: building scale, while fostering speed, agility and innovation," Dell said. "By combining Dell and EMC, we can become the essential technology infrastructure for the next industrial revolution."

Dell itself spends far less on R&D than either EMC or HP and HPE. In a February Securities and Exchange Commission filing, Dell said it spent $1.27 billion on research, development and engineering for the fiscal year ended Jan. 29, 2016, a 2.4 percent year-over-year increase.

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