Richi Jennings

Dell hell continues as it morphs into enterprise cloud company

August 22, 2012 6:05 AM EDT

The Dell (NASDAQ:DELL) Q2 results make ugly reading. The company is in mid-transition from a consumer-PC-led business into an enterprise 'n' cloud-computing firm.

In IT Blogwatch, bloggers manage to avoid using the phrase post-PC.

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By Richi Jennings: Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention: iPhone owners are sad and alone...

 
James Niccolai reports:

Its profit for the period declined 18 percent from a year earlier...revenue fell 8 percent. ... Most of Dell's money still comes from desktop PCs, sales of which were down 9 percent...and from laptops and other mobility products, which were down 19 percent.
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Dell said its [Q3] revenue would be down 2 percent to 5 percent from [Q2]. ... A new OS release can sometimes boost sales...but Dell doesn't expect much benefit from Windows 8...in the near term.  MORE

 
Iain Thomson adds the enterprise view:

Wall Street analysts were expecting [this]. ... Dell blamed the drop on...its PC and mobile divisions, saying that its consumer PC lines were down 22 per cent on the year.
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The enterprise solutions and services division is doing very well, however, with revenues up six per cent.  MORE

 
Terrence O'Brien reads between the lines:

Dell's slide deck...unsurprisingly points out that Windows 8-based [PCs] and tablets are on deck, but it also mentions a mysterious "converged device" segment as well.  MORE

 
Robert Broens runs the numbers:

Over the past five years, shares in Dell have lost roughly half their value. ... Net profits remained stable, as Dell expanded its activities in the higher-margin enterprise business. ... Operating performance has been dismal for years, and seems to deteriorate further into 2012.
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Dell's PC business is eroding very fast. ... The network and enterprise division is not large enough to support the entire company yet.
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I fear the value trap.  MORE

 
Larry Dignan is puzzled:

It's questionable why Dell bothers with its consumer business. ... Should a Windows 8 upgrade cycle fizzle, look for Dell to downplay consumer PCs even more.
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Dell struggled in Brazil, India and China. Only Russia showed growth. ... Dell's transformation remains a work in progress.
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Dell's server and networking sales appear to have allayed the biggest worries.  MORE

 
And Finally...
iPhone owners are sad and alone
[hat tip: Mela Andersen via Bob Brown]