Dell Trumpets Big Channel Gains Post Going Private

Printer-friendly version Email this CRN article
Since going private, Dell has promised to focus on four key areas of growth: big data services, security, cloud computing, and BYOD products. To that end, since going private, Dell has made a number of strategic moves including rolling out new notebooks, tablets and two-in-one devices, introducing a real-time cloud-ready platform for SAP HANA, and beefing up its security services and products. Dell also upped its R&D spending from 1.6 percent of revenue to 2.1 percent, according to the Round Rock, Texas-based company.

Since going private “Dell has been investing strategically to acquire the IP and expertise it needs to package software and services in a more digestible way,” wrote Laurie McCabe, co-founder and partner in research firm SMB Group, in a recent research note. McCabe said Dell is spending more time synthesizing its recent acquisitions into a complete solution instead of buying companies.

In March, Dell made its first acquisition as a private company when it bought StatSoft, a data analytics firm.

“Dell’s enterprise and software businesses has increased by double digits,” Cook said. “Our client end-user business is up 29 percent in Q1,” she said.

According to research firm IDC, Dell PC shipments increased more than 9 percent in the first quarter of 2014, representing its third consecutive quarter of positive year-on-year growth. Dell ranks behind Lenovo and Hewlett-Packard in terms of worldwide PC market share with 13.3 percent of the market. Lenovo ranks No. 1 with 17.7 percent market share and HP has 17.1.  

“The vendor's revamped channel strategy -- with greater focus on partners and solutions as well as use of PC sales as part of broader solutions -- Is paying dividends as the company benefits from the relative strength of commercial replacements as well as operational freedom and reduced uncertainty after completing the privatization,” wrote IDC in its most recent PC Worldwide Tracker report.

Dell’s PC business, Cook said, is strong and acting as a springboard into more lucrative enterprise opportunities. Just this past quarter, she said, Dell has seen 13 percent growth in new lines of business registration where a partner may be selling just PCs or servers and added more lucrative storage, networking or other lines of business.   

NEXT: Measuring Dell's Success 

Printer-friendly version Email this CRN article