Dell Moves Toward Cloud, Virtualization Technologies
May 3, 2010
Dell, known as a PC and server maker is making a shift away from hardware to cloud computing and virtualization technologies in an effort to compete with enterprise-technology rivals, like HP and IBM. As mentioned in this Barron's report, Dell is no longer just selling boxes, but has reorganized itself to offer total computer systems and consulting services.
"Dealmaking is one of those things. The biggest example was last year's pricey $3.9 billion buyout of Perot Systems. It was a drastic reversal for Dell, whose company epitomized organic growth and who had vowed not to venture into consulting and services, referring to such firms as 'body shops.' But the Perot deal also helped make Dell the No. 1 information-technology vendor in health care worldwide, based on 2009 revenue. Dell has made 10 acquisitions since his return to the corner office (see table on page 20), and has lured David Johnson, a 27-year IBM (IBM) deal-making veteran, to continue that mission. 'Acquisitions are just another tool in the tool kit,' says Johnson, a senior vice president, in his first interview since leaving Big Blue."