) is winning number of deals recently and has now won a deal from
the United States Navy Medical Logistics Command and the United
States Army Integrated Clinical Systems PMO. These U.S.
departments will implement Dell's Unified Clinical Archive (UCA)
This particular task order is a part of the Digital Imaging
Network Picture Archiving Communications System III (DIN-PACS
III) contract. The task order has been given to Brit Systems
team, which comprised Dell and Acuo Technologies. The total order
is worth $45 million. The contract will let the Army and Navy
share Picture Archiving and Communications Systems (PACS) images
between military bases and branches worldwide. They will be
able to access and share medical images for 49 hospitals, with
the help of Dell and its partners.
The growth of Electronic Health Records (HER) began with the
federal government announcing an incentive for the same in
February 2009 whereby, the Obama administration approved the
spending of $30 billion in economic stimulus money, which
will ultimately help the doctors and hospitals buy the equipment
needed to convert medical record-keeping from paper files. Dell
is constantly benefiting from this opportunity.
Not only is Dell winning deals at a good pace, but it is also
getting repeat orders from its existing customers. Dell is also
coming up with other strategies to strengthen its foothold in the
market. The company has recently added two new touch screen
devices to its flagship series of XPS laptops. The XPS 10 is a
Windows tablet, whereas the XPS Duo 12 Ultrabook falls somewhere
between a tablet and a laptop.
The two devices have received encouraging reviews for their
robust hardware design and good performance. This will help Dell
win some big ticket corporate customer and will help the company
improve its customer base.
We understand that the shift to the higher-margin enterprise
business is critical to Dell's survival and success. For the past
few quarters, Dell's financial results have failed to impress
investors and we believe that the main reason for the
disappointment was the delay in the order renewal process.
However, keeping in mind the increasing demand for cloud
solutions we are cautiously optimistic about Dell's progress in
Currently, Dell has a Zacks #3 Rank (short-term Hold
rating). Although the company is exploring new sources of
revenue through acquisitions, it expects further decline in PC
shipments. Moreover, competition faced by the company in the SMB
and server segments from players like
Cisco Systems Inc.
is also a concern.
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