Memo to Michael: 10 Ways to Fix Dell
Dear Michael: The VAR Guy has held his breath for a bit, giving you ample time to settle back in to the CEO job. As a frequent Dell customer and long-time company watcher, The VAR Guy offers you these unsolicited steps to get Dell back on track.
1. Visit CIOs and Apologize: If Dell had listened to customer demands, you would have embraced AMD Opteron chips much earlier. Instead, you put your Intel relationship ahead of your customer relationships. That’s bad business.
2. Focus: Do you want to compete with Amazon.com or HP? Your Web site says Dell offers over “20,000 electronics and accessories from a wide array of brands.” Meanwhile, CIOs and small businesses are running to HP. Go deep with commodity electronics or business IT–but not both.
3. Exit the TV Business: The VAR Guy actually has two Dell TVs. He likes them. A lot. But Dell no longer has a price advantage in this market. It’s a distraction for you. Unplug your own TV brands, offer a few third-party LCD TVs–but focus on IT. One idea: Reposition your TVs for Digital Signage applications within retail stores, airports, etc.
4. Get Serious About Open Source: No, I’m not referring to Linux on the desktop. Let’s talk about your higher-margin server business. We know Dell loves selling Linux servers running Oracle. In fact, Dell is the biggest reseller of Oracle databases in the world. Next, Dell should become the largest reseller of MySQL, the open source database. The market is ready.
5. Get Serious About Networking: Bolster Dell’s own networking solutions or buy a small networking company that has loyal VARs. 3Com comes to mind. Or get out of the business and OEM Cisco/Linksys gear.
6. Recruit More IT Consulting Partners: No, not to build a huge indirect sales channel. Instead, leverage VARs (value-added resellers) and IT consultants to support the gear you sell. Partner or acquire Global 2000 services expertise. And for small business, reach out to companies like OnForce to quickly mobilize a vast network of technology consultants. True consultants won’t be threatened by your direct sales model.
7. Call SAP: They want to target more small and midsize business (SMB) accounts. You want to target more SMB accounts. Hmmm.
8. Go Back to Your Dorm Room: Visit college students. See what they’re using and why. Tomorrow’s corporate innovations emerge from today’s college campuses.
9. Cut Staff Fast: If layoffs are coming, make the moves quickly. Don’t reward loyalty with multiple rounds of job cuts. Nortel recently announced its fourth round of layoffs since 2002. That’s torture for staff.
10. Pay Shareholders a Dividend: Dell is no longer a rapid-growth company but you still generate loads of cash. HP, IBM, Intel and Microsoft all pay dividends to shareholders. Dell should, too. Show investors you’re focused on long-term loyalty and solid fundamentals. Be the P&G of IT. Pay a dividend.
That’s all for now. Other deadlines–from paying clients–loom. All this free advice is hurting my margins.
[…] part of an open letter to Michael Dell earlier this month, The VAR Guy strongly recommended that Dell focus on the open source community […]
[…] way in recent years. Now that Michael Dell is running the show again, The VAR Guy thinks there are at least 10 areas where Dell can improve its business. If Michael gets things right, The VAR Guy may purchase a Dell […]
To: Mr. Michael Dell, Chairman
Sept. 21, 07
Dear Michael,
I have a problem and am forced to bring it to your attention.
Last year (24-XI-07) I had a friend buy for me in the UK a very nice XPS M1210, as I need it for my work between the UK and Europe. (So, it’s in his name, though it’s mine.) It was covered for a 3 year service policy.
While working here in Switzerland the rubber electric cord / unit that connects it to the wall developed some ‘sparks’, just after the part that connects to the computer. Obviously, a break in one of the electric cords. Where to fix it? Found no Dell reps in Geneva. So called Ireland Dell for instructions. Then the problems started.
Calling 44-870-3664-180, and eventually routed through tel. 870-3664-180, and so to many other departments and stations, here and there and then waiting, etc. – after 20 minutes (timed and finishing at 14.45hs European time) – I simply gave up. I only wanted answers for the most simple 2 questions:
(1) Does Dell have any agent in Geneva or Switzerland that could help me?
(2) Could they help me and should I send the part to Ireland for repair and/or replacement?
I understand how complicated these two questions were for the Irish Branch of Dell, and that I was really wasting their valuable time and interfering with their more important jobs. They simply couldn’t help me. As I fly occasionally to Texas and visit relatives in Austin and Arlington, I could normally have taken it there in person. But it’s a little difficult now while working on my project here in Switzerland.
Would you please advise and indicate how I can resolve this problem, i.e. if you want me to send this article to Dell in Austin for revision / repair/ or replacement? I am most grateful for your help in finding a solution to this very simple matter. Then I can get on with my work.
The machine is and XPS M1210, bought in the UK under the name of Riaan van Wyk, on 24-XI-07, with a 3 year service taken out: Service Tab: 89TOM2J and Express Service Code: 245-375-387-47. The computer is just fine. The problem is the electric cord. Should you want more information on Riaan, I can send it.
Thank you for your time and trouble.
Respectfully yours,
David R. Kersten, MD
[…] Sun and customers.When Michael Dell returned to the CEO chair, The VAR Guy offered him a list of10 ways to fix Dell. One of the key recommendations was to open wider for open source. Michael never called to say […]
[…] Michael Dell returned to the CEO chair, The VAR Guy offered him a list of 10 ways to fix Dell. One of the key recommendations was to open wider for open source. Michael never called to say […]