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SAP: New leadership, same old story?
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Category: Dell
January 13th, 2010
IDC: PC shipments roared back in the fourth quarter
The U.S. PC market surged in the fourth quarter hitting a record with 20.7 million units, up 24 percent from a year ago, according to research firm IDC.
In fact, the PC growth was solid across the globe courtesy of cheap pricing. The global PC market posted 15.2 percent growth in the fourth quarter compared to a year ago. The results bode well for PC-related vendors such as Intel, Microsoft and HP. All three will have closely-watched earnings reports in the coming days and weeks.
In a statement, IDC credited pent-up demand, value-priced notebooks and the launch of Windows 7 for the pop in units. However, IDC called the launch of Windows 7 a “moderate” help to unit growth. Consumer spending drove units, but business spending is expected to take a while to come back.
Among vendors, Acer grew 28 percent globally. HP topped the average growth rate and Lenovo delivered strong growth in Asia. What remains to be seen is whether the unit growth—fueled by cheap netbooks and notebooks—translates into big profits for vendors.
Here’s the scorecard with my notes:
January 8th, 2010
Intel launches netbook app store; One store too many?
Intel has rolled out a beta of a store dubbed AppUp to aggregate software for netbooks and Asus, Acer, Dell and Samsung plan to integrate their hardware with the marketplace. The big question: Do we need one?
Think about it. The netbook is designed for the Internet. Aren’t applications supposed to ride shotgun with your browser. How about rich Internet applications? Intel’s says from CES 2010:
“The Intel AppUp center offers netbook users quick and easy access to applications specifically tailored to their mobile lifestyle. Our store does the work of aggregating, categorizing and validating applications so consumers can shop, collect and install from one easy source. With today’s kickoff of our beta store, both developers and consumers will be able to take advantage of the rapid expansion of this new category of computing as the stores continually add apps.”
The problem: I’m already suffering app store fatigue. Intel’s AppUp will host applications for Windows and its open source Moblin operating system. Ultimately, AppUp will be available to smartphones, consumer electronics and devices run by Intel processors.
Also: CES: Buying into a new PC form factor? It’s best and worst of times · Intel touts 3D, apps for netbooks · CES 2010 gear in pictures · Special Report: See full CES coverage
Here’s a brief tour of AppUp. I made the trip so you don’t have to.
First the selection’s a bit thin, but that’s to be expected. There will be more applications because the netbook market is huge.
Here’s a look at the game selection:
To buy an app you register at Intel’s store:
Unfortunately the app froze when I went to get an account. After terminating AppUp (it is a beta after all) I returned. Moving along…
A lot of the apps in AppUp fall into multiple categories. Boxee is one of them:
Overall, it’s a start, but I’m still fuzzy on why I need apps for a netbook beyond my browser and Internet software.
January 8th, 2010
Buying into a new PC form factor? It's the best (and worst) of times
If you’re in the market for a PC—laptop, slate, tablet or some other newfangled form factor—it’s the best of times. And it’s also the worst of times.
At CES 2010, we’ve seen the hybrid tablet/laptops, slates from HPs and a bevy of other snazzy designs. All touch enabled, all light and all worth taking for a spin.
Now it’s time for a confessional: I’m just not sure what the heck I’d do with some of these things. Of course, Lenovo’s hybrid thing-a-ma-jig looks great. But am I really going to separate the slate portion as if it were the Space Shuttle ditching the fuel tank? Will this form factor be appealing 10 weeks from now?
Also see: CES 2010 gear in pictures Special Report: See full CES coverage
Simply put, if you’re pondering some of these new devices you’re at a fork in the tech road. Some of us will buy the next iPod touch. Others will buy the equivalent of a tech Dodo bird. Simply put, some of us will chase these form factors and might as well flush a few hundred dollars down the toilet.
You need a crystal ball to figure out which devices will wind up as hits or duds. And frankly, my forecasting ability just isn’t that good.
So what’s a tech buyer to do? Wait. The flops may reveal themselves quickly. Why worry about what form factors will get panned? No one wants to pay good money for a dud.
For instance, is anyone seriously going to buy this Asus keyboard concoction (right)? Do I need an HP slate (below) if it’s just going to be a glorified Kindle? As noted at Tech Introvert, tablets and netbooks/laptops need different use cases or they just duplicate each other. And I smell a lot of duplication.
The rub: I’m on the fence if I want a single use device or all-in-one. I know I don’t want to carry around a bunch of devices. Perhaps Apple’s mythical table gets me off the fence. Maybe it doesn’t. In either case, it’s all a bit fuzzy right now. The best option may be to hang back and let the market show me the way. When in doubt the newfangled designs may be best left as eye candy.
Microsoft CEO Steve Ballmer spoke highly of the barrage of form factors, but honestly all the hubbub makes me want to run back to the friendly confines of my laptop (perhaps a sleek new lighter model though). The big question: Do I really want or even need the designs coming out of CES?
January 4th, 2010
The year ahead: Five moving parts behind a 2010 tech recovery
The quarterly data points are looking up and there’s a quiet optimism about technology spending for 2010. But there are a bevy of wild cards.
The back half of 2009 could be summed up in one sentence: The bottom is in. Tech CEOs across the board cited sequential improvement in their business even as the year ago comparisons remained putrid. Cisco CEO John Chambers summed it up for a lot of technology chiefs on the company’s latest earnings conference call:
The initial phase of recovery is underway based upon (Cisco’s) order momentum. While the continued strength of the recovery and eventual job creation may still be in question, we are clearly basing our decisions and our investments upon an optimistic evolution of the economy.
In December, Oracle president Safra Catz gave a similar assessment after a strong quarter:
December 10th, 2009
Dell: Enterprise desktops aren't dead, but are getting smaller
Dell on Thursday launched what it claims is the “world’s smallest fully functional commercial desktop” with an integrated power supply and Intel vPro technology.
Even though desktop sales have been in decline for years, there’s a big race to smaller form factors underway. Dell’s OptiPlex 780 USFF (ultra small form factor), which starts at $629, is designed to take on similar offerings from HP and Lenovo. Dell also unveiled the OptiPlex 380. The big pitch: Desktops aren’t glamorous but they take up less space these days and still matter to select verticals.
In a statement, Mike Basore, senior product marketing manager at Dell’s client group, said:
“The death of the commercial desktop has been greatly overstated. We are seeing customers look to deploy small form factor systems in ways never before imagined.”
If you say so.
So how small is small? The OptiPlex 780 USFF weighs in at 7 pounds is 9.4 inches high, 2.6 inches wide with a 9.3 inch diameter.
In other words, you can toss it in your backpack. Not that you would of course because you probably have a laptop.
December 2nd, 2009
That giant sucking sound: Sun's server share continues to deteriorate
Global server revenue fell 17.3 percent in the third quarter, but sales were up sequentially for the first time since the fourth quarter of 2008, according to IDC data. However, Sun Microsystems’ sales continued to fall 35 percent as the company lies in limbo as regulators ponder a deal with Oracle.
November 24th, 2009
HP vs. Dell: Showdown at the Windows 7 upgrade corral
Here’s a tale of two PC titans: HP and Dell. One executes well every quarter. The other doesn’t. Both see big PC upgrade cycles ahead. Both are looking to ride a bump in enterprise spending courtesy of Windows 7.
Place your bets.
As enterprises ponder the PC upgrade cycle and a move to Windows 7 tech executives are likely to have two primary vendors pitted against each other: HP and Dell.
The earnings conference calls from HP and Dell were very similar. Both talked services. Both talked upgrade cycles. And both talked up Windows 7 (see HP and Dell’s financial results).
HP CEO Mark Hurd said Monday on the company’s fiscal fourth quarter conference call:
The personal systems group also delivered in Q4, extending its market leadership by more than a full point yet again. We saw good consumer acceptance of Windows 7, particularly in the U.S. Given that we gained double-digit points of market share in U.S. enterprise and have claimed the top market position, we are well-positioned to win when corporations upgrade to Windows 7. PSG delivered healthy operating margins despite increasing commodity costs.
Dell CEO Michael Dell also was bullish about Windows 7—and also saw component costs rise. He said a week ago that PC growth could be in the mid-teens:
I think there is an aging installed base for sure. You just have an accumulation of new technologies at the hardware, software, virtualized client and these IT managers really know they cannot extend the life of these client assets forever. While I don’t think it is all going to occur at once, I think it will be a rolling refresh that occurs over perhaps 18 months, I can’t remember a time when a very high percentage of them skipped an entire operating system.
And Hurd and Dell sounded like long-lost twins about the corporate upgrade cycle too. Here’s Dell:
We think we are holding or gaining share in the right kind of price points. Our efforts on the cost side should expand our ability to profitably compete in a larger portion of the price points. What I would also tell you is that the pipeline of client opportunities we are already seeing more client activity in the last 30-60 days than we have in a long time and the pipeline for client activity kind of going forward into next year is the strongest it has been in a long time as well. So if I look at our commercial businesses the second quarter was kind of a bottom. The third quarter was certainly better. October was the best and November will be better than October.
Here’s Hurd’s at bat as he references HP’s share gains and the corporate upgrade cycle:
I think it is important to note we don’t usually start with an objective of gaining share. It’s more the result of us just trying to do the right work for the customer and I think as we mentioned a couple of times, we have increased our sales coverage, which we think is part of the reason that you have seen this performance occur as it has. Second, we’ve worked really hard to work on our service experience and the service experience is a really big deal, So it’s a combination of trying to get more at bats and frankly in the U.S., this is the place that we haven’t had as many at bats as we’d like to have and we have increased sales coverage there. Secondly, trying to continue to focus on service, so yeah, we feel pretty well-positioned that as long as we can maintain the at-bat level and with the service experience that we are delivering now, that we think we will be in pretty good shape. I think you couple that with the product line-up that we have just announced and Windows 7, we think we’ve got a pretty compelling offer so yeah, we’re optimistic about it.
Now it’s possible that this Windows 7 upgrade cycle will be big enough to lift all PC players, but ultimately it’s death match with Dell and HP—especially in the enterprise. The rub: Dell’s financial performance is spotty and that reflects what could be a vicious crunch. HP squeezes Dell from above and Acer hurts the PC maker from below.
Chris Whitmore, an analyst at Deutsche Bank, said that HP gained share at the expense of profit margins. Whitmore wrote:
Although HP’s PC units grew 8% year over year, we estimate HP’s operating profit per unit dropped 30% year over year as ASPs were down about 20% year over year and commodities tightened.
That fact could mean some bad news for Dell. HP is diversified enough to squeeze Dell with minimal impact on its overall profitability. Meanwhile, HP’s scale means it can weather component pricing fluctuations better.
No matter how you slice it HP has Dell outgunned with a larger services unit (acquiring EDS was the best move HP ever made), more foot soldiers and more momentum. Simply put, HP has the arsenal to squeeze Dell in the critical PC business. Dell may be optimistic about the PC buying cycle, but that doesn’t necessarily mean it will harvest all the rewards.
November 20th, 2009
Michael Dell sticks to Windows 7 big bang theory
Dell chief Michael Dell is projecting a Windows 7 upgrade cycle that could put PC growth “well into the teens.” What’s unclear is whether Dell will be able to grab a bigger share of the revenue pie or be outmaneuvered by rivals like HP and Acer.
Following the company’s disappointing quarter, Dell executives said the timing of the Windows 7 launch hurt revenue and earnings. That’s why Dell’s third quarter results fell short of expectations.
On a conference call, Dell executives sounded upbeat about the fourth quarter and the fiscal year to come.
When asked about the potential for a PC replacement cycle that would be above the 10 percent growth rate usually expected, Michael Dell said:
Read the rest of this entry »
November 19th, 2009
Dell's third quarter disappoints yet it sees IT demand improving
Dell’s fiscal third quarter financials fell well short of estimates across the board.
The company on Thursday reported third quarter net income of $337 million, or 17 cents a share. That tally is down 54 percent from a year ago. Wall Street was expecting earnings of 28 cents a share. Dell’s earnings included pre-tax expenses and other moving parts that knocked 6 cents a share off of the earnings sum. But even excluding those items, Dell fell short.
Revenue wasn’t much better relative to expectations. Dell reported revenue of $12.9 billion, down 15 percent from the $15.16 billion in the third quarter a year ago. Wall Street estimates: $13.18 billion.
Meanwhile, Dell’s gross margins fell short of targets too. Dell reported gross margin of 17.3 percent in its fiscal third quarter compared to Wall Street estimates calling for 18.19 percent.
Simply put, Dell is either taking hits in the PC market or analysts got way ahead of themselves predicting a rebound. In a presentation, Dell did note that pricing has been aggressive (statement).
On a conference call, Dell CFO Brian Gladden said:
Our third quarter reported revenue was adversely affected by the timing of the Windows 7 launch and our SMB and consumer businesses where we did build more backlog than normal due to the later quarter order dynamics. We expect our backlog to return to more normal levels in the fourth quarter.
For its part, Dell did say that things were improving sequentially. Shipments were flat sequentially and down 5 percent from a year ago.
Here’s Dell’s view of the PC market:
November 16th, 2009
Netbooks dead? Not when sales are up 264 percent
Can the best-selling category of the PC market really be just a fad? A junky joke? A stunt to prop up the PC market created by Intel?
Jason Hiner at TechRepublic seems to think so. He proclaims:
Netbooks — those underpowered mini laptops with 7-inch screens and unusable little keyboards — are a dying fad. However, the legacy of the netbook will be that inexpensive notebook computers are here to stay, and they are lighter and thinner than ever.
Analysts and pundits will continue to use the term “netbook” but I’m going to argue that the device that we originally called the netbook is being phased out — and thankfully so.
I have a netbook. It’s small—9 inches—and it now belongs to my daughter. My hands are too big. The screen is too cramped. And I’m inclined to think that Jason’s right. The netbook is just a passing fancy.
And then I follow the numbers. Look at all the people buying netbooks. NPD’s DisplaySearch reckons that netbook sales surged 264 percent in the second quarter from a year ago. Revenue for the overall notebook market declined. Here’s the scorecard.
Meanwhile, check out Jason’s talkbacks. It’s a love affair—and they all couldn’t be sent by the netbook fan club.
The special thing about it that makes me happy is that it’s small and so handy. I don’t need to play games or do lots of complicated things on the street. But this one is just 100% what I need and I will never give it up.
And.
I bought a Dell Mini 9 in 2008 and have never regretted it. It’s small enough to carry in my purse, boots up quick, and maybe it’s because I have small fingers, but the size of the keyboard has never been an issue.
That said, it is not my main PC, nor would I ever try to make it such. I bought it to browse the internet and do some light word processing - the heaviest lifting I have ever asked it to do is stream movies across my wireless home network - and it has always performed flawlessly.
And.
I bought mine due to travel restrictions imposed by the airlines on a trip to Australia in 2008 and love it. I use a regular laptop/notebook as my main computer at home but it is too big and heavy to travel with. The Netbook allows me to use almost all my programs, some engineering, spreadsheets, topographic maps and GPS routings. I even use it at home with my wireless network, sometimes in bed at night while reading books on exploring Utah so I can see the topographic maps and the satellite pictures of the area. No it doesn’t replace the desktop notebook but darn near.
Are these people bonkers? Nope. Intel’s financial results—partially fueled by the Atom chip that powers these little devices—tell the tale.
Netbooks aren’t for me, but apparently there are a ton of allegedly confused consumers still buying them. Dell and Microsoft have downplayed the netbook to some degree, but what else are they going to do? After all, the netbook is a margin killer.
So what’s the future of the netbook? It’s way too predictable to envision lightweight notebooks replacing the netbooks. Netbook 2.0, 3.0 and 4.0 are likely to have different form factors. Perhaps the Droid and the iPhone are really your netbooks. Perhaps Apple redefines the netbook category with a tablet. Perhaps people keep buying the current versions of netbooks. Netbooks will hang around and probably thrive because people like second and third computing devices. The form factor may change, but the market niche isn’t going anywhere.
More: Study claims netbook users dissatisfied with Windows 7. Are you?
November 13th, 2009
Android army keeps growing as Dell enlists; Will the mobile OS war follow PC history?
Google CEO Eric Schmidt has said that “Android adoption is literally about to explode” and it’s hard to argue with that assessment given the troops that are amassing behind the mobile operating system. Dell is the latest to enlist with an Android smartphone and Motorola’s Droid is the highest profile device, but it’s the total sum of converts that’ll make 
the difference.
Android is beginning to swamp the mobile market and it’s going to be very interesting to see if other operating systems—namely Apple’s iPhone OS and RIM’s BlackBerry OS—can hold or gain market share as Google’s OS infiltrates multiple devices. In many respects, the Android strategy to be on every device is similar to the early days of the Windows-Mac war. Microsoft enlisted multiple PC partners to swamp Apple to make Windows the dominant operating system. Will there be a mobile replay here with Android? Operating systems that are tethered to one device are going to be swamped from all sides by Android’s army. It’s hard to envision 2010 and not call it the year of the Android device.
“You have all the necessary conditions. You have the vendors, you have the distribution, and so forth,” said Schmidt on Google’s third quarter earnings conference call last month. Simply put, Android is amassing all the ingredients that Microsoft used with Windows way back when.
Meanwhile, the Android army is beginning to advance. To wit: Dell (right), Motorola, Garmin, Verizon, HTC, Barnes & Noble, LG and Samsung are just a sampling of companies making bets on Android. As these companies roll out what is likely to become hundreds of devices over the next few years at least a few of them will be hits. Motorola is expected to ship 1.3 million Droid devices in the fourth quarter, according to Morgan Keegan analyst Tavis McCourt.
Special report: DROID takes on iPhone
- With Motorola Droid, Verizon puts doubts about Google Android platform to rest
- FAQ: Android 2.0 and Droid
What’s also notable is how Android is playing overseas. For instance, Dell isn’t playing ball in the U.S. It’s going right to where the growth is: Asia and Brazil. Perhaps Dell will flop as a smartphone provider, but it won’t go down without advancing Android’s cause somewhat.
All of these troops make big predictions for Android market share entirely plausible. Gartner said that Android only had 1.6 percent of smartphone platform market share in the first quarter. However, the picture in 2012 will look dramatically different.
Gartner analyst Ken Dulaney noted at the research firm’s IT Symposium last month:
Expected improvements in the Android environment backed by the power of not only Google’s search engine, but from their other up and coming consumer (for example, maps) and enterprise products should make this a dominant platform. Potentially the integrative, open environment of Google could easily top that of the singular Apple.
By 2015, Gartner predicts there will be three dominant platforms and several niche players. Given the army that Android is amassing it’s realistic to predict that the open source mobile OS will make the cut.
Also: Android opens doors for Google’s next-gen search, ads and tools
November 13th, 2009
Dell launches Android smartphone; Inks China, Brazil carrier deals
Dell officially hatched its grand smartphone plan and it’s focused on emerging markets and the Android operating system. The company confirmed its plans to launch smartphones in China and Brazil.
In a statement Friday, Dell said it will distribute its Mini 3 smartphones through China Mobile, the wireless behemoth in China. In Brazil, Dell has inked a deal with Claro, which has more than 42 million customers.
The strategy makes a lot of sense. In the U.S. Dell would face a crowded field. In so-called BRIC countries (Brazil, Russia, India and China) the growth pie is big enough to support multiple players and new entrants such as Dell. For instance, China Mobile has 500 million customers.
Gallery: Dell calls on its new Mini 3 smartphone
The other notable wrinkle here is that Dell’s Mini 3 smartphones run on Android. The Mini 3 will be available in late November on China Mobile and by the end of the year on Claro. In a blog post, Dell said:
With Android, we’re designing these initial Mini 3 phones to provide power, flexibility and customization to both our customers and to carriers around the world.
It remains to be seen whether Dell can be a smartphone contender, but if it’s going to be successful the emerging markets are the best place to start. Indeed, Ron Garriques, president of Dell’s consumer group, is familiar with emerging market turf since he led Motorola’s efforts abroad.
Dell said the moves solidify its “continued expansion into mobile Internet products.” Dell already has a bevy of netbook deals with various carriers around the world. Rumors of Dell’s move into smartphones have circulated for months. Dell CEO Michael Dell talked about the company’s smartphone plans on an earnings conference call in August.
Also see: Dell alleged smartphone move into China: Not as crazy as it sounds
And the images:
November 4th, 2009
New York AG files antitrust charges against Intel; alleges bribery, coercion
The New York Attorney General’s office today accused chip maker Intel of engaging in “a worldwide, systematic campaign of illegal conduct,” including paying kickbacks and threatening computer makers, and filed federal antitrust charges against it. (PDF of Complaint)
In a statement, New York Attorney General Andrew Cuomo said that e-mails revealed that Intel has scored exclusive agreements with computer makers to use its microprocessors by resorting to “rebates” and threats, such as cutting off payments, funding a competitor or ending joint development ventures. In a press release, Cuomo said:
Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market. Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices. These illegal tactics must stop and competition must be restored to this vital marketplace.
Intel spokesman Chuck Mulloy told the Wall Street Journal that the company will defend itself against the charges and that “Neither consumers who have consistently benefited from lower prices and increased innovation, nor Justice, are being served by the decision to file a case now.”
Cuomo’s office said the company also tried to erase traces of its practices by “eliminating crucial but flagrantly objectionable provisions from written agreements or by camouflaging language about illegal guaranteed market shares with terms like ‘volume targets.’ ”
The AG’s office noted specific instances of the illegal practices involving Intel and Dell, HP and IBM. Among the allegations:
- From 2001 to 2006, Intel granted Dell a privileged position vis-à-vis other computer makers in return for Dell’s agreement not to market any products from Advanced Micro Devices, Intel’s major competitor
- Intel threatened HP that it would derail development of a server technology on which HP’s future business depended if HP promoted products from AMD
- Intel paid HP hundreds of millions of dollars in rebates in return for HP’s agreement to cap HP’s sales of AMD-based products at 5% of its business desktop PCs
- Intel paid IBM $130 million not to launch an AMD-based server product
- Intel threatened to pull funding for joint projects that benefited IBM if IBM marketed AMD-based server products
The AG’s office also offered examples of instances where PC makers agreed to go along with Intel’s practices, specifically a 2006 deal between HP and Intel that involved payment of $925 million to HP to increase Intel’s shares of HP’s sales at AMD’s expense and a collaboration between Intel and Dell to market microprocessors and servers at prices below cost to “deprive AMD of strategically important competitive successes.”
However, the AG positions the PC makers as victims here, not collaborators. For example, the AG’s office offers these examples, unveiled as part of its 20-month investigation:
- Internal e-mail from IBM executive in January 2005: “I understand the point about the accounts wanting a full AMD portfolio. The question is, can we afford to accept the wrath of Intel…?”
- Internal e-mail from HP executive in June 2004 after HP defied Intel and launched an AMD product: “Intel has told us that HP’s announcement on Opteron [AMD’s server chip] has cost them several $B [Billions] and they plan to ‘punish’ HP for doing this.”
- Internal Dell e-mail in February 2004 regarding the possibility of Dell ending its exclusive relationship with Intel: “PSO/CRB [Intel CEO Paul Ottelini and Intel Chairman Craig Barrett] are prepared for jihad if Dell joins the AMD exodus.
- Internal e-mail from Intel executive in April 2006: “Let’s talk more on the phone as it’s so difficult for me to write or explain without considering anti-trust issue.”
October 15th, 2009
Back-to-school demand saves PC market; Slight growth in third quarter
Global PC shipments came in at 80.9 million in the third quarter, up 0.5 percent from a year ago, according to Gartner.
OK, a 0.5 percent increase is a bit of a joke in most years, but after the shellacking the tech industry took in late 2008 and early 2009, vendors will take it. Gartner was expecting PC shipments to fall 5.6 percent in the third quarter (statement). Also see: Sam’s take on the IDC figures for the quarter.
Consumers continued to lead growth by gobbling up netbooks and cheap mobile PCs during back-to-school salses. Here’s the worldwide scorecard for the quarter:
And the U.S. picture where Apple, Acer and Toshiba are posting the largest growth gains.
October 15th, 2009
PC report: Apple pushing 10 percent share; Win 7 not expected to have big Q4 impact
Apple is finally pushing toward double-digit market share with IDC reporting 9.4 percent share in the U.S. for the third quarter - an 11.8 percent jump from the same quarter a year ago - in its quarterly PC Tracker report.
The natural assumption, of course, is that Apple’s gain has been the result of a PC market that has been in a lull as it awaits the release of Microsoft’s Windows 7 later this month. But Loren Loverde of IDC tells CNET that Windows 7 isn’t expected to be a big driver of fourth-quarter growth. Instead, Loverde noted that the growth has already been occurring - ahead of the Windows 7 release - and believes that people are buying systems and plan to upgrade. That may be good news for Windows 7 sales - but hardly a fourth-quarter boost that the PC industry needs.
During its earnings call yesterday, Intel also noted that notebooks seemed to be maintaining their momentum and weren’t necessarily getting beaten by the smaller, less expensive but also less powerful netbooks. Intel execs also said they didn’t expect the release of Windows 7 to have a big impact on the fourth quarter.
But for both Intel and PC makers, growth numbers are relative. Consider that fourth-quarter numbers last year - across many sectors - were in the dumps. Any positive growth this year looks great compared to last year.
IDC had Acer surpassing Dell for the No. 2 spot in U.S. PC shipments, both trailing No. 1 HP, which had 20.2 percent share. Apple was in fourth place with 9.4 percent and Toshiba was in fifth with 8.1 percent.
Gartner also reported PC market share numbers but those were different because Gartner includes x86 servers in its counts and also looks at revenue from vendors.
October 14th, 2009
Netbook disillusionment and why Compaq is still a brand
Dell CEO Michael Dell said that disillusionment with netbooks kicks in after about 36 hours. Assuming Dell’s right, and he may be, does that mean cheap laptops in the $399 range will trump them?
Speaking at the Churchill Club Tuesday night (Techmeme), Dell said that the appeal of netbooks—they are small and light—wears off after a few hours as users want their bigger screens back. I can attest to Dell’s take since I had the exact same reaction and now my daughter has a fine Dell Mini. (Small detour: Sam was on his way to the Churchill Club but got rear ended by a Prius since some folks out West can’t drive in the rain. Given Sam had a pickup so it’s clear who won that collision but it was just enough to keep us from Dell’s talk).
But all the people buying netbooks can’t be completely disillusioned right? Adrian Kingsley-Hughes notes that it’s in Dell’s best interest to trash netbooks at least a little since they hit profit margins. That’s true, but the 
more interesting issue comes when consumers see full-featured, larger screen notebooks that cost about the same as a netbook. Will you go for the 15.6 inch screen for $399 or the Dell Mini 10 that will run you $349?
Christopher Dawson summarizes the conundrum for education IT buyers:
October 13th, 2009
Dell talks Self-Service IT at Openworld [video]
At the Oracle OpenWorld conference in San Francisco, Dell chairman and CEO Michael Dell took to the stage to talk about the new strategies that the company is embarking on to help enterprises save money, energy and resources with Dell products and services. In this video clip, Dell talks about the rising interest of self-service models, which includes things like remote infrastructure management and automation services.
October 12th, 2009
Salesforce.com, Dell target SMBs
Dell and Salesforce.com said Monday that they will team up to target small and mid-sized businesses.
The announcement, which coincides with Oracle’s OpenWorld, goes like this:
- The companies will launch certified Dell-Salesforce.com customer relationship management bundles via the cloud.
- Pricing will start at $9 per user per month.
- Dell will essentially resell Salesforce.com to SMBs and offer integration services.
- Dell’s Salesforce integration products include PowerEdge servers with integrated Salesforce.com CRM, a virtual integration appliance and a cloud integration service.
Dell and Salesforce.com have been tight partners. Salesforce.com’s data center is powered by Dell gear. And Dell is an integrator. Salesforce.com Marc Benioff and Dell CEO Michael Dell will present in a session at OpenWorld. Dell is also a keynoter.
October 12th, 2009
Perot Systems acquires BearingPoint's China consulting unit
Perot Systems, set to be acquired by Dell, said it is acquiring BearingPoint’s China consulting unit out of bankruptcy.
BearingPoint, which is currently in bankruptcy, has a China consulting unit that was formed in 2001 (statement). BearingPoint China Consulting specializes in the energy, automotive, insurance and financial services industry. The unit has offices in Shanghai and Beijing.
Add it up and Dell will improve its Chinese footprint with Perot, which recently won a few contracts in China, and now the BearingPoint addition. BearingPoint China Consulting will be housed in Perot Systems commercial business unit.
Terms weren’t disclosed and the deal must be approved by the U.S. Bankruptcy Court and Chinese government.
Also see: Dell: Perot Systems purchase an ‘anchor’ acquisition; More deals likely
October 7th, 2009
Dell reportedly on Android bandwagon with AT&T
Dell is reportedly planning to make an Android-based phone for AT&T’s network.
According to CrunchGear, citing a tipster, and the Wall Street Journal, citing “people briefed on the plans,” Dell is making a touch screen phone that will run on Android.
The phone will be similar to one showed off in China in August.
The larger question is whether consumers will be clamoring for a Dell phone. Will Dell be a mobile phone success?
More:
Larry Dignan is Editor in Chief of ZDNet and Smart Planet as well as Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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