Singapore Exchange ("SGX") has modernized its technology
infrastructure with the help of Dell Inc. ( DELL ). The deployment
of Dell's futuristic technology enabled SGX to double the speed of
its operations, thereby increasing its efficiency and reducing its
This deal was a big win for Dell in recent times, as SGX is one
of the largest stock exchanges in Asia and in the world.
The project requires Dell to provide end-to-end application
modernization services and mainframe re-hosting technology. Dell is
expected to help SGX's entire mainframe complex, which includes
maintaining, clearing and settlement; third-party tools and
utilities; and server and storage resources to provide a
customer-friendly IT solution.
Dell is going all out to establish its credentials in the IT
market again. The company may be expected to make several marketing
and strategic moves to strengthen its business model. Its
privatization is a positive, since it is likely to make the company
more nimble and help it take tough decisions. However, it could
have a negative effect on the company's credibility.
These deal wins and privatization are likely to help Dell
generate much-needed cash that the company could spend to pay off
its private equity investors and service its debt.
Ever-increasing competition from companies such as Lenovo,
Asustek, Apple Inc . ( AAPL ), Google
Inc. ( GOOG ),
IBM ( IBM ),
Hewlett-Packard Company ( HPQ ), and Cisco
Systems has restricted Dell's growth prospects. The players are
moving faster than Dell even in emerging markets that Dell is now
targeting, so the going is likely to be tough.
We are also concerned about conservative tech spending,
continued weakness in the PC market in 2013, declining revenues and
competition from its peers. However, back-to-back product launches,
a growing presence in the enterprise storage space and continuous
deal wins seem encouraging.
Currently, Dell has a Zacks Rank #3 (Hold).APPLE INC (AAPL): Free Stock Analysis ReportDELL INC (DELL): Free Stock Analysis ReportGOOGLE INC-CL A (GOOG): Free Stock Analysis
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