BloggingStocks

Dell to offer servers using Sun's Solaris software

Brian White — Thu, 15 Nov 2007 12:43:00 EST

Filed under: Products and Services, Competitive Strategy, Microsoft (MSFT), Dell (DELL), Hewlett-Packard (HPQ), Advanced Micro Dev (AMD), Sun Microsystems (JAVA), Technology

Dell, Inc. (NASDAQ: DELL) and Sun Microsystems, Inc. (NASDAQ: JAVA) announced yesterday that the world's second-largest maker of computer systems will begin using Sun Microsystems' Solaris operating system as an offered feature of its new hardware servers. Dell will also custom build new servers around Sun's software.

The CEOs of both companies, Dell's Michael Dell and Sun's Jonathan Schwartz, announced the unique partnership and although this is being seen as a major step forward in Dell's attempt to release the shackles of Microsoft Corp.'s (NASDAQ: MSFT) grip, no specific financial terms were disclosed. Since Dell opened up its consumer and business PCs and server computers to processors from Advanced Micro Devices, Inc. (NYSE: AMD) and the freely-available Linux operating system, this is yet another way the Round Rock, Tx. company is trying to diversify its offerings in the wake of slowing sales and market share losses to competitor Hewlett-Packard Corp. (NYSE: HPQ) in 2007.

Sun CEO Schwartz said that "Dell's offering of Solaris redefines the market opportunity for both companies," and he's right. Dell's hardware and distribution expertise will easily help Sun grow its market share for server computers, many of which power some huge web properties around the globe. Dell's ability to partner with multiple hardware and software platforms in the last 12 months or so really stands as a testament to its desire to reach any and every customer it can (in any segment) with a wide variety of offerings to suit every need. Microsoft shouldn't feel threatened -- yet.

Dell to offer servers using Sun's Solaris software originally appeared on BloggingStocks on Thu, 15 Nov 2007 12:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Dell (DELL) and Lenovo set up to crash through Windows

Gary Sattler — Thu, 09 Aug 2007 14:15:00 EST

Filed under: Products and Services, Competitive Strategy, Microsoft (MSFT), Dell (DELL), Wal-Mart (WMT)

Here's a scenario which is quite unneeded by Microsoft Corp. (NASDAQ: MSFT). In the battle to create profit within the world of personal computers, it must be scary for "number one" when numbers two and three join forces. According to a report from Red Herring, that is exactly what is happening, sort of. I haven't heard yet if Microsoft is scared.

It would seem that Dell and Lenovo are each gearing up behind the Linux operating system and are preparing to take a flying leap right against Windows. Judging by the considerable negative banter I have encountered regarding a less than stellar Windows Vista inaugural performance, I would say Dell and Lenovo's move comes at a most opportune time.

Dell Inc. (NASDAQ: DELL) has fully embraced Linux, which has had fairly good response from domestic open source enthusiasts. Dell, for its part, is taking the operating system on a worldwide road show. Dell will be hard selling PCs loaded with the Linux operating system in several countries across the pond.

For number three PC maker Lenovo (OTC: LNGVY)'s part, it plans to introduce a broad range of Linux-outfitted laptops, a particularly strong endorsement of the operating system. To me this signals a recognition by manufacturers in the field that Windows Vista is shoddy, expensive and perhaps a bit arrogant, if I can use that word in this context.

To be honest I must admit that Dell has lost me as a customer. That is mainly due to Dell's decision to succumb to the wiles of Wal-Mart (NYSE: WMT). I thank Dell however for giving the nod to Linux, as that may very well be my chosen operating system for the computer I am soon to build. My computer building project shall be introduced on Friday and shall be fully chronicled on our sister site, DIYLife. I'm hoping that our BloggingStocks friends will come share their opinions as I build a computer from scratch. I will be soliciting reader input to help complete that project successfully.

Dell (DELL) and Lenovo set up to crash through Windows originally appeared on BloggingStocks on Thu, 09 Aug 2007 14:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Dell joins Microsoft-Novell Linux alliance

Brian White — Mon, 07 May 2007 14:28:00 EST

Filed under: Competitive Strategy, Microsoft (MSFT), Dell (DELL), Novell Inc (NOVL)

When Microsoft Corp. (NASDAQ: MSFT) shook hands with Linux proponent Novell Inc. (NASDAQ: NOVL), it was questioned what the Windows software maker was up to. Was the open-source software world shaking hands with the devil? In some circles, this conspiracy theory has been twisted around quite a few times. Is a Microsoft and Novell partnership really going to be focused on extricating old but stable Unix platforms out of data centers in order to get their wares in the door and in use?

Maybe. The Microsoft and Novell alliance, though, has just scored its first home run to ensure that possible scenario does indeed happen. Dell Inc. (NASDAQ: DELL), the world's second-largest computer manufacturer (behind Hewlett-Packard), has just joined the Microsoft-Novell business collaboration to have open-source Linux software working with Windows.

Will Dell's alignment with the Microsoft-Novell alliance really allow the Windows and Linux environments to further entrench themselves into massive corporate data centers? Probably, but Dell doesn't have a stranglehold on this market or anything. Competitors like Hewlett-Packard, Sun and IBM are still heavy forces in that environment. Unseating even a piece of all that may not come easily, especially against protective IBM. So, for now, this Dell alignment is good PR, but the proof is in the performance pudding. Check back in late 2008.

Dell joins Microsoft-Novell Linux alliance originally appeared on BloggingStocks on Mon, 07 May 2007 14:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Dell chooses Ubuntu for Linux offering

Brian White — Fri, 04 May 2007 11:30:00 EST

Filed under: Press Releases, Consumer Experience, Competitive Strategy, Dell (DELL)

Dell (NASDAQ:DELL)has started listening to the vocal minority and will offer Linux as a pre-installed operating system option on newer PCs. This isn't exactly news, but the "flavor" of Linux that Dell has chosen sounds the most appropriate. Ubuntu Linux is becoming one of the more popular choices since it is so easy to use, and is strikingly similar to Microsoft Corp.'s (NASDAQ:MSFT) Windows in the "look and feel" department.

However, I still maintain that the majority of customers will continue to prefer Microsoft's Windows for the long term. From what I've seen, trying to get the mainstream Windows customer to try another operating system is like pulling teeth: people don't like change (even when it is better). Ubuntu will always feed a need for the cost-conscious (it's free) and hobbyist computer crowd, and it's used in come corporate environments and schools as well. But the corporate environment and most home environments? Nope.

At the end of May, Dell will begin offering Ubuntu's latest version on some of its PCs. So, even though I don't expect mass defections from folks buying Windows PCs to newer Ubuntu PCs, the significance of this is if Dell's relationship with Microsoft will suffer from this. Microsoft is tight-fisted when it comes to competitive operating systems, so if Linux variants start becoming more visible and commonplace on machines from large Windows vendors, what will Ole' Softie have to say? So far, the giant remains docile.

Dell chooses Ubuntu for Linux offering originally appeared on BloggingStocks on Fri, 04 May 2007 11:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Linux option won't save Dell's marketshare

Brian White — Fri, 30 Mar 2007 13:56:00 EST

Filed under: Good news, Products and Services, Industry, Consumer Experience, Competitive Strategy

Based on a tremendous amount of customer feedback from its IdeaStorm customer feedback blog, Dell (NASDAQ: DELL) says it will offer the Linux operating system as a pre-installed option on new consumer PCs. While I wrote about this earlier, it is now coming to fruition. As Doug mentions here, though, this move will not do anything to counter Dell's sliding marketshare right now. I agree completely, and here's why...

Although Dell's position here is that the company is "listening to its customers" and now will be offering Linux as an alternative to Microsoft's Windows Vista operating system, the sliver of Dell customers wanting Linux, at least right now, is largely insignificant. It's generally known that the vocal minority can have the largest voice, and that is what is happening here.

It's very true that Linux (which I use on occasion) is every bit as good and robust (and easy to use) as Windows. There are arguments back and forth on everything from software applications to hardware support between Linux and Windows, but when the silent majority wants what they're used to (namely, Microsoft Windows...period), offering Linux on Dell consumer PCs will be a great marketing tool for the techno trendsetter but not to the average Joe consumer -- or the business PC user who needs that install of Microsoft Office at all times (or, funnily, the free OpenOffice suite).

Does Dell run the risk of angering Microsoft -- one of its largest customers -- by now offering a Linux option when a customer builds a PC at the Dell website? Probably, but I would think that frustration is limited. If (not when) more than 25% of Dell customers start choosing Linux on their PCs instead of Windows, then Microsoft may have a reason to be concerned. I don't think we are close to that happening at all, but one thing is for sure -- the vocal minority has spoken, and they want Linux.

Linux option won't save Dell's marketshare originally appeared on BloggingStocks on Fri, 30 Mar 2007 13:56:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Will Dell ever sell Linux PCs like some customers want?

Brian White — Tue, 13 Mar 2007 13:17:00 EST

Filed under: Products and Services, Competitive Strategy, Dell (DELL)

This article over at The Guardian makes a pretty decent case why Dell Inc.'s(NASDAQ:DELL) possible planned foray into selling Linux PCs may not ever work like some folks think it will. I agree with the author in that Michael Dell did not build his company by not listening to what customers wanted. So the question is, do most customers really want Linux on a new Dell PC? In terms of the consumer market at large, it's highly doubtful.

Most of the general PC buyer market (consumer market, anyway) only knows Windows from Microsoft. Sure, it has a huge share of problems, but trying to change the "comfort zone" of the average PC consumer from Windows to any flavor of Linux would be a massive undertaking. It's very true that the various distributions of Linux nowadays are very, very good operating systems. Ubuntu Linux 6, for example, is incredibly slick (I use it myself). It's also free -- while Windows is not. But does the normal customer even realize this when the only thing he or she cares about (insofar as price) is the total cost of the machine?

Can Dell make that cost proposition relevant to the burgeoning consumer market that it so desperately needs to grow? Probably not. The expertise to support all the various distributions of Linux and all the associated baggage to hand hold customers who need higher levels of support may possibly make the company charge more for Linux PCs than for Windows PCs. The open source community is the best support organization out there (and by far the brightest). But will normal customers care if the actual computers are more expensive? That's one for the ages.

Will Dell ever sell Linux PCs like some customers want? originally appeared on BloggingStocks on Tue, 13 Mar 2007 13:17:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Dell gives in to customer demand and will now sell Linux PCs

Brian White — Thu, 01 Mar 2007 14:25:00 EST

Filed under: Competitive Strategy, Dell (DELL)

Just a few weeks after Dell Inc. (NASDAQ:DELL) opened up its "IdeaStorm" digg-like customer blog and feedback forum, the top issues generated by customers at the site were asking (and in fact, pleading) for the world's second-largest PC maker to sell its PCs pre-loaded with the free Linux operating system.

While almost all PCs sold today include a copy of Microsoft's Windows operating system, the price of that Windows software is included in the PC's price. What if you don't want to pay for or receive Microsoft Windows on that new Dell PC? Fat chance during the last few years, as that was the only non-excludable operating system choice for almost all consumer-level PCs purchased from Dell.

But, in true Michael Dell fashion, the computer maker's recent top management changes -- including the return of Dell himself to the CEO position -- renewed a focus on what customers want. This is great news, as companies collude all day long in glad-handed deals to sell each other's wares regardless of what the customer wants. Dell himself built the company he is now running again by focusing on what customers really want.

Whether the Linux crowd is just a vocal minority or a representation of a larger customer base that does not want to pay for Windows in the price of a PC any longer, the option to include Linux on new Dell PCs is a return to what Dell used to do best -- listen to and respond to customers. It'll be interesting to see how its next few fiscal quarters break out in terms of how many PCs ship with Windows and with Linux, yes?

Dell gives in to customer demand and will now sell Linux PCs originally appeared on BloggingStocks on Thu, 01 Mar 2007 14:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments