<<<I don't know what internal issues kept them from executing on their "roll your own" services initiative, but they know a lot more about what they can and can not do than I do. If they really could not get the services business going the way they wanted, then the current strategy is the best to maintain growth in the key enterprise sector.
>>>
Dog: I realise you are discussing a higher level of 'service'
beyond my experience, but here are some other comments FWIW.
One big problem at Dell is finding enough qualified people.
Wages increasing, States offering $10K bonuses for technology
people just to stay in their jobs, Government trying to ease permits for foreign workers to come here. Its not a good time for Dell
to spend their money to build up services against the competition
beyond that required for their major customers.
My DIL works in a related field, received two $25K bonuses this year
-so far
But many say now Dell should go for the high margins in the service area. Yet Dell has done and will do very well with the 22%
gross,8% net earnings which permits them to be the low-cost producer
and build market share.
Another point here is that building a complete service organization to 'fix' only Dell computers would not be efficient
because of the dispersed locations. A Dell man in Fort Stockton
would not be ahhhhhhhhhhh--- too busy. But if he fixed all types
of computers it may be profitable.
And also with the Air Force, each repairman would require
clearance and background checks. One for IBM, one for CPQ, one for
Dell, one for HWP,one for (old Dec), one for (old Tandem),etc.
So if the IBM on-site group could service the 'other guys'
equipment it would be a cost saving operation. To do that
IBM would need access to the Dell configurations thru WWW.Dell.
com, and I assume that is part of the IBM/Dell agreement.
Companies that learn to work together in this manner
will be the ultimate survivors and prosper.
Guess I'm just wordy today.Sorry
Regards
Sig
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