Dell plans to achieve growth through acquisitions without all-inclusive

Source: Internet
Author: User
Keywords All-Inclusive Dell Corporation acquisition object big manageable
Beijing time July 15 morning news, according to foreign media reported today, Dell executives said in Tuesday, the company plans to promote the growth of the business through acquisitions, but not as competitors do "all-inclusive". Michael Dell, the company's CEO, said at an analyst meeting that the company was considering changing its product line to increase the profitability of its products.  Dell said business margins are higher and will boost business growth through acquisitions. Dell said the acquisition of EqualLogic, a storage company in 2007, was an attempt by Dell to offer High-margin products, a deal that was quite successful. EqualLogic's products are "suitable" for Dell's servers, driving revenue growth.  Dell points out that deploying more storage devices in the datacenter is an opportunity. Steve Schuckenbrock, President of Dell's corporate Steve Schuckbrock, said the company also plans to expand its manageable services business. Can manage service business to provide reasonable profit margin, and help to sell more hardware products, strengthen customer relationship.  Over the past two years, Dell has acquired a number of manageable services companies, such as Everdream, Silverback, and Messageone.  The cloud computing market is growing fast, and the company will expand its cloud computing business through acquisitions, according to Dell executives. Brian Gladden, Dell's CFO, said that Dell would mainly buy companies with good performance and fast-Blaine Gladen products, so it would not buy in lower-margin industries, such as client hardware. Although client hardware "dominates", Dell hopes to drive growth in profitable products and services. "We're not going to do a big takeover, which is good for controlling risk," Gladen said. "At the end of the first quarter of fiscal year 2010 as at May 1, Dell had 9.7 billion dollars in cash and cash equivalents."  Despite the decline in total revenue, equallogic storage-product revenues rose 71% in the first quarter. There are rumours that Dell will buy palm and dabble in smartphone business.  The acquisition of Palm will improve Dell's ability to compete with Apple; there are rumours that Dell will buy Acer and increase its share of the PC market. No "all-inclusive." In response to analyst questions about Dell's acquisition schedule, Dell said, "We do not feel the pressure to buy a company quickly, and we will take the time to pick the target." "Despite Dell's" deliberate ", rivals such as IBM, HP and EMC are rushing to buy. Hewlett-Packard bought a service giant last year EDS;IBM purchased SUN;EMC just $2.4 billion a year to acquire data Domain for storage products vendors.  Cisco has also been involved in the server market for the first time. Major High-tech companies are trying to sell as many data center devices, software and services as possible to their customers, instead of being content with the networkTraditional roles such as equipment companies, database companies, etc. Dell denies that "Dell should emulate this strategy by offering customers a ' complete ' hardware and software solution", "I don't think this strategy is appropriate" and Dell will add more intellectual property, but "think we don't need to provide complete solutions". (Zhi Xiang)
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