Dell looks to increase focus on midmarket

Dell is increasing focus on the midmarket as the company looks to offer new cloud computing, security and data management services to customers.

Dell is increasing focus on the midmarket as the company looks to offer new cloud computing, security and data management services to customers.

Midmarket companies -- enterprises with up to 5,000 employees -- are taking up a larger share of the worldwide IT market, especially in emerging markets, said Michael Dell, at a speech during an analyst conference in Austin, Texas.

Once known as a direct-sales consumer PC provider, Dell has been building its software and hardware portfolio to become a competitive enterprise services provider. In addition to offering cloud and security services, the company is looking to increase focus on managing data movement between the cloud and storage systems, Dell said.

Dell has acquired 11 companies in the last two years to help address midmarket needs, and is looking to further acquire companies to build its intellectual property and product portfolio. Some key acquisitions over the last few years include services company Perot Systems, storage companies EqualLogic and Compellent, cloud company Boomi and security company SecureWorks. The company is also building data centers and cloud-computing research centers to create reference architectures for cloud applications and help midmarket customers more easily take advantage of the cloud model.

The needs of midmarket companies are often less complicated, and technology implementations are usually prepackaged, simple to implement and cost-effective, Dell said. The company is trying to provide products based on an open architecture that helps midmarket companies quickly scale operations.

Smaller businesses with up to 500 employees in many cases are early adopters of technology that ultimately is migrated to IT implementations in large-scale enterprises, Dell said.

Many companies that Dell acquired in recent years built products for smaller IT deployments that are now being implemented in larger enterprises. Dell executives highlighted system management tool vendor Kace as being one of those successes.

Dell acquired Kace around 18 months ago, and at the time customers with over 10,000 employees didn't want to take a risk on Kace system management products, said Rob Meinhardt, general manager of Dell Kace during a round table at the analyst conference.

"They didn't have the confidence of buying from a startup," Meinhardt said.

But Dell is now helping push Kace technology into larger enterprises such as Suzuki and NASA.

By focusing on the midmarket, Dell also hopes to carve out a niche from larger service providers such as IBM and Hewlett-Packard.

Dell would rather take multiple $50 million services contracts as opposed to a $5 billion contracts, said Steve Schuckenbrock, president of Dell's services group at the conference. The smaller contracts would help drive innovation without being accountable to an "old dinosaur model," Schuckenbrock said.

Analysts have said that Dell's services offerings are more hardware agnostic compared to Hewlett-Packard and IBM. However, HP and IBM are much larger in services and offer more complete consulting services, service delivery and outsourcing capabilities. HP's services revenue in the most recent quarter was $8.98 billion, while Dell's services revenue in the entire fiscal 2011, which ended on Jan. 28, was $7.7 billion.

Dell's product portfolio includes EqualLogic and Compellent for storage and Boomi to deliver cloud services. The company also hopes to provide devices such as smartphones, tablets and PCs to enterprises. The company's XPS Streak 10 Pro -- targeted at businesses -- initially will be launched in China, which is one of the fastest growing markets for Dell.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesDellservices

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?