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Technology giant Dell is going to turn its attention–and a lot of money–to the midmarket, according to its CEO Michael
Dell. In remarks made at an analyst conference, Dell said the company would pour
$1 billion into acquisitions of midmarket companies in an effort to better serve
businesses with up to 5,000 employees. “Acquisitions will continue to be
critical focus of strategic investment activities,” the Financial Times reported
Dell saying.
Dell and his executives detailed how the
acquisitions and shift toward newer technologies is pushing the company toward a
goal of being an IT services company in the same vein as Hewlett-Packard, IBM
and Oracle. The company has already snapped up 11 companies over the past two
years in pursuit of this strategy, including EqualLogic and Compellent, cloud
company Boomi and security firm SecureWorks and services company Perot Systems.
In the next year, Dell plans to focus on
three areas, which include data management, IT services within the growing world
of cloud computing and revamping the company’s traditional user computing model
by selling more software and services to these customers. The business customers
of No. 2 PC maker Dell helped the company finish its fiscal 2012 first quarter
ahead of estimates, with net income of $945 million on revenue of $15 billion.
While the revenue figure was up 1 percent from a year ago, net income was up 177
percent.
Related articles
- Dell focuses services on burgeoning midmarket (infoworld.com)
- Michael Dell remains on a mission (ecombiz.biz)
