Comments on: A brutal logic to Dell’s reinvention: Eric Auchard http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/ Now raising intellectual capital Sun, 08 Nov 2015 08:31:30 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: David Mole http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1307 Mon, 27 Jul 2009 01:16:55 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1307 As the IBM view is for operating sysyems to become basic resource commodities as they have supported GNU/LINUX and Google is following with Android on a GNU/LINUX base for mobiles to synchronise with CHROME as a browser and operating system. With applications in the CLOUD SPACE, my only necessity for MICROSOFT WINDOWS is to drive my printer / copier / scanner / fax ALL-IN-ONE AND I CAN DO THAT ON ANY OLD PENTIUM 4 !!! Applications broken by upgrades of WINDOWS VISTA are a head ache for systems administrators, so why do corporate require WINDOWS 7 ? Access is a slow database compared to MySQL or PostgreSQL and the proprietary heavy weights; MICROSOFT SERVER IIS is uncompetitive unless the finance director has an inside trade on quantitative easing !!! Big fat budgets have an exit strategy by using fast growing players like RED HAT, recently promoted to the S+P500 index of quoted companies, and the demand is for server rationalization and thin clients like netbooks. LINUX FORMAT magazine www.linuxformat.com (August 2009 p44, LXF121)recommended for netbook:- MSI WIND U100, operating system UBUNTU NETBOOK REMIX and BLUETOOTH configured straight out of the box. Professional web developers prefer the LAMP stack (LINUX, APACHE, MYSQL,PHP) and similar as explained by the authors of the book:- PROFESSIONAL PHP6 (www.wrox.com). Legacy issues are holding people back from breaking free from the stranglehold of MICROSOFT proprietary lock-in. Open Office 3 (www.openoffice.org) and Content Management Systems offer a migration path to appeal to an aggressive cost concious finance director with a desire to recycle existing resources. As video conferences replace a significant part of the travel budget, and as the book said “WHO MOVED MY CHEESE?” Unique distinctive competence or race to Chapter 11 section 363 bankruptcy to wait behind struggling airlines in the queue ? This is not a definitive forecast, but capitalist logic !!!

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By: sleepy http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1265 Sat, 25 Jul 2009 17:32:58 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1265 Dell is a distribution and financial engineering business piggy-backed on the weakening Wintel monopoly; it has never been an IT or engineering business; they just latched on to PC supply logistics faster and harder than anyone else, becoming for a while the biggest mom and pop white box PC assembler on the planet. But that’s over now, and they’ve taken out all the retained earnings to buy back stock option exercises, leaving a very weak company lead by a very wealthy Michael Dell. Dell’s senior management has floundered for several years and this is just the latest of their daydreams of a return to the ego boosting glory days. Unlikely to happen given the shallowness of their talent. The company is not remotely similar to HP.

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By: Scott http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1227 Fri, 24 Jul 2009 14:32:03 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1227 Dell Reinvents itself: Translation: China makes PC’s now and we are another US company that is incapable of manufacturing a product in the US. So instead, we must join the new US “Service Economy” and become another company that produces nothing of real value.

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By: Waseem http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1217 Fri, 24 Jul 2009 11:16:45 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1217 Well seems a long way from Micheal Dell’s earlier stated policy. Dell was adamant not to spend on R&D. Seems now that is the only way foward.

Strategy makes sense.

Implementation would be a reckoner though.

Lets wait and watch how things unfold.

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By: Frank M. http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1149 Thu, 23 Jul 2009 04:03:19 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1149 Why is Dell, as the otherwise insightful article puts it, showing a “willingness to cannibalize its existing hardware business” by enabling users to gain more benefit from its hardware? Why isn’t it this simply sound long-term corporate marketing policy?

It sounds to me like a typical American perspective that raw profit from products is the main (or only) concern for manufacturers. My (admittedly limited) exploration of German manufacturing suggests that taking the consumer perspective and creating the most useful product mix in the world is the secret to Germany’s rise to first in the world in durable goods export (ahead of Japan and the U.S. with 2 and 4 times its population). That Germany makes a studious effort to understand and meet the total needs of consumers in the U.S. is suggested by its supplying cigarette machines to Virginia tobacco producers, Boston Harbor’s advanced sewage treatment plant, and Google’s book scanners.

I would welcome an in-depth article by Auchard comparing German and U.s. manufacturing policy.

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By: zmartmoney http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1123 Wed, 22 Jul 2009 19:02:12 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1123 Boy, it didn’t take long to bring out the HP people. Dell’s challenge is to ignore what the entrenched services sellers are hawking and stay on its current path. Short term pain, but long term advantage. They’re doing fine.

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By: Calvin Zito http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1121 Wed, 22 Jul 2009 18:38:44 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1121 Hi,

I’d respectfully disagree with your assessment that DELL “more than other large computer vendors, it has embraced ‘virtualization’ technology”. HP has had virtualization technology before DELL was founded. We’ve had virtualization in servers since the 80’s, began shipping virtualized storage in the mid-90’s and are currently VMware’s biggest partner. We’ve had our own server virtualization software (for HP-UX) for several years.

Frankly, compared to HP, DELL is a late comer to virtualization.

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By: Naked Empires http://blogs.reuters.com/commentaries/2009/07/22/a-brutal-logic-to-dells-reinvention-eric-auchard/comment-page-1/#comment-1115 Wed, 22 Jul 2009 17:57:24 +0000 http://blogs.reuters.com/commentaries/?p=1567#comment-1115 While the strategy makes sense, Dell lacks the native talent — executive, sales, service — to drive such a fundamental change. And how is a struggling hardware company going to attract top services talent other than going above market on compensation, which throws a spanner into the works for cost containment.

Further, they’ve been teasing at significant new turnaround strategies almost quarterly since Michael Dell returned and as CEO, yet nothing has moved the needle. Their incremental moves in the consumer space (Alienware, Zing) have proved inconsequential and EqualLogic is not making inroads on the enterprise side.

You make a great case for this latest Dell strategy, but their record argues against their ability to execute.

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