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Dell Is Targeting Firms Seeking Flexibility: CEO

Monday, 27 Feb 2012 | 1:26 PM ET

Dellis targeting companies of all sizes that want to take advantage of new technology quickly and seek flexibility in how they use it, CEO Michael Dell told CNBC Monday.

“Our real expertise is identifying those technologies and those solutions that make a difference for customers,” he said, particularly fast-growing customers — not just small and medium-sized businesses, but also large companies “that take advantage of these technologies faster.”

Dell noted that “most of the growth of the world in employment is in small and medium business. That’s an area where Dell has an enormous amount of strength.”

He said customers “want flexibility on where their systems exist. Sometimes they want them on premise, they may want them in the cloud , they may want them in our location, and we’re providing them all that flexibility.”

The company has expanded beyond personal computers over the past five years or so to “building relationships” in the enterprise, services, and solutions business, which at $18.6 billion is about half the company’s profits, the CEO said. He said his company has 2 percent, or $60 billion, of a $3 trillion enterprise market.

Dell CEO on Building Customer Relationships
How Dell is trying to keep its momentum going in an environment where PCs continue to struggle, with Michael Dell, Dell CEO, and CNBC's Jon Fortt.

On Monday, the company unveiled the next generation of its power-edge server line that brings together networking, storage, and 10-gigabit ethernet capabilities to enable things like virtualization and more intense workloads, said Dell.

“We’re enabling all kinds of new things,” he said. “These are the kinds of servers that will power the next generation of really exciting applications.”

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.