DELL’s New Play = A Vision of Grandeur…

I, for one, do not understand Dell’s mindset in acquiring Perot Systems. 

My first instinct is that Dell has maximized their margins on hardware for pretty much all things IT for a good 12-15 years; and are now, in the midst of a recession, looking to bolster their bottom line.

I would say look elsewhere…

With that said, I do give kudos to DELL for the acquisition of EqualLogic as it has expanded their product line.  I do not see this latest action as doing the same.  Hardware and distribution of hardware are VERY different than Professional  Services.

My take on this is that DELL has a very solid hardware and distribution company that has changed the game and made all others in the same space either better or changed their game plan.  Now, this same company is paying a pretty steep premium (in my estimation) to delve into a space that is highly competitive and saturated.

But hey, what is $4B to DELL?

I say it is a sunk cost… 

 I will delve into Perot Systems and EDS in upcoming blogs.

‘Til next time,

Todd