Dell: PC Business Is Dead So We're Going To Buy Stuff

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Dell (DELL) wants to diversify its business, and is looking to do this quickly and profitably through acquisitions, the company said at its analyst meeting today.

CFO Brian Gladden said the company wants to focus on products and services that deliver profitability.

Currently, 46% of its business comes from client hardware. Dell wants to expand its focus from hardware to enterprise offerings, services and consulting.

Two options:

  • Data centre: Looking to acquire companies in storage, server and cloud computing spaces.
  • Large enterprise IT services: Looking for “acquisitions that would scale the services business faster. These deals would focus on intellectual property, technology and in some case headcount,” says ZDNet.

Dell is more focused on acquiring healthy companies with products that can offer quick returns, so it may not seek acquisitions in the low-margin areas like client hardware, said CFO Gladden via PCWorld.

There was no mention interest in a mobile device company, though rumours of the company acquiring Palm are age-old and make more sense now that Palm has managed to build a new, technically impressive platform, WebOS.

Read Dell’s analyst meeting presentation here (PDF).

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