Dell's Core Strategy

By Steve Wexler  |  Print this article Print

Dell has paid lip service to the channel over the last 25 years, but recently what many considered empty rhetoric has been given more substance by solid gains through acquisitions like EqualLogic and Kace.

Meinhardt says Kace and EqualLogic represent one of the core strategies for Dell, creating "best-value solutions", products that not only offer extraordinary ROI, but where Dell owns the intellectual property. "I see companies like Kace and EqualLogic... as cornerstones of bringing these products into the Dell ecosystem."

EqualLogic sales have grown 500 percent under Dell's stewardship, he says, "and the amount going through the channel has gone up". Last quarter EqualLogic revenue grew 78 percent, which is very impressive when you consider that the total disk storage systems market grew 0.2 percent in the fourth quarter of 2009, according to IDC.

The future for Kace as a PC-alternative also appears to be looking very bright. Like the other PC vendors, Dell is expecting a massive refresh in the near future in the corporate and public client segments. "We estimate that less than 5 percent of large commercial customers worldwide have made the transition to Windows 7 and Office 2010," says Michael Dell. "I think it is a fairly unique time because the age of the installed base is as great as it has ever been and there wasn’t really a catalyst or series of catalysts to upgrade and now we believe there is. We are seeing significant projects and conviction among customers."

New features in the K1000 include:

  • easy-to-use capabilities allowing customers to quickly and easily configure and enforce power settings on Windows and Mac OS X systems;
  • predefined reports that display energy savings which may be used to qualify for utility rebates;
  • service desk functionality consistent with Infrastructure Library (ITIL) best practices that simplifies the automation of key IT processes; and,
  • enhanced Smart Label technology dynamically groups managed machines for easier reporting and improved automated policy-based management.