'I Want to Break Free'
Looks like Dell is going to be installing some Google stuff on its PCs. Some reports seem to be suggesting that this is the beginning of the end of its relationship with Microsoft. I think this is rather exaggerated and needs to be put in to context. Dell is going to install Google’s desktop search tool and other bits and pieces. At the end of the day you’ll still buy Windows XP and Microsoft Office, so I’m not sure how significant this is!
This is the least of Dell’s worries as its revenues and profits have been sliding recently. Even this has to be put in to context because Dell is doing well but not as well as before. It has pulverised many other PC manufacturers in to submission and the likes of IBM have sold their loss making PC division to Chinese manufacturer Lenovo. Dell has a ultra efficient supply chain but if all you’re going to do is compete on price, then there’s only one way that is going to go! As small business owners we all know that all too well!
So, the Dell direct model is slowly giving way to some channel sales and the opening of some retail outlets in the US. There are already IT companies that I know that resell Dell hardware. I prefer to stick with IBM’s System X Servers for two reasons. Firstly, they are technically better solutions and IBM is a leader in R&D and Dell is not! Secondly, buying a server means you are implementing a more sophisticated IT infrastructure and with that you need expert support, which is where IBM’s channel model comes in its own.