) is going through a revival phase as it begins acting on the
strategies discussed in the Dell Enterprise forum in June 2013,
to evolve its business model.
Dell has adopted some innovative solutions, which include the
PowerEdge 12th generation servers. These servers are designed to
attract more customers and address more dynamic business
requirements. While they increase the level of business
efficiency, productivity and reliability, they effectively reduce
Dell is making valuable contribution to its customers. The
company has been instrumental in reducing the Chinese steel maker
TAGAL's cost of ownership by 20.0%, and has been able to improve
the customer response time with its enterprise solution.
Moreover, the PowerEdge server and solution helped the
U.S.-based marketing agency, Lopez Negrete, to transfer large
multimedia files in short time. Lopez replaced the
) SAN as well as the 3Com switches with the Dell Compellent
Storage Center and Dell Networking switches.
Moreover, recently Dell helped Redstation, a co-location
service provider, to gain momentum and experience growth of
around 70.0% with the help of a dedicated infrastructure and
cloud services in combination with its PowerEdge 12th generation
servers. The company made a cost benefit analysis to choose the
Dell PowerEdge servers, instead of offerings from H-P and
Thus, businesses and customers are getting a reasonable amount
of support by opting for the Dell solution, which in turn is
increasing the customer loyalty of the company in the long
We believe that, customer success stories are good for the
company, but Dell's senior management is of the opinion that the
company is facing its biggest challenge in the Consumer and
evenues have also taken a hit.
The company, however, needs to adopt innovative strategies and
explore other businesses to reduce its over-dependence on PCs.
The collaboration with
) is one of them.
In spite of all the strategies, the headwinds faced by the
company make us apprehensive about its future. In the past year,
the company has had its share of challenges in the form of tough
), as well as a restricted spending environment which hurt
However, we expect new deal wins and privatization to help the
Dell Inc. has a Zacks Rank #5 (Strong Sell).
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