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Dell's Resurrection

Posted Jul 15, 2008 11:20am EDT by Sarah Lacy
Related: dell, ibm, hpq
Yep, that headline has a double meaning. As we all know Michael Dell is back to reclaim-- and hopefully relegitimize-- the computer empire he started in his dorm room. Russ Mitchell of CondeNast Portfolio flew to China to interview Dell, as his company lustifully eyes all those potential Chinese computer buyers. Trouble is everyone else is eying the International computer market too.

As hardware continues to be a tough market, Dell and Hewlett Packard both are turning to services as a way to juice revenues and profits, but with very different strategies. While Dell takes a characteristic "lean and mean" approach, Hewlett Packard plunks down nearly $14 billion for EDS. Mitchell breaks down the battle between Dell and HP chief executive Mark Hurd.

Related segments:
Michael Dell: Is He Agnostic When It Comes to Operating Systems?

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8 Comments

JEFFREY
JEFFREY - Tuesday July 15, 2008 12:16PM EDT

This guy has no clue. Dell will not exist in the next 5 years unless they diversify and grow a services business. Watch HP. They have a strong model with the recent aquisition of EDS

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Ramon
Ramon - Tuesday July 15, 2008 12:54PM EDT

Dell has an uphill battle, their services do not amount to much and there is little money in the commodity hardware business. If HP get smart and start a price war that could really jeopardize Dell turnaround.

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brotha speed
brotha speed - Tuesday July 15, 2008 01:17PM EDT

The lean & mean approach may have worked with Dell a few years ago when Carly was running HP, but Hurd is much more savvy, not sure what I think about the EDS buy, but HP is better poised than Dell to act & react to whatever the market brings to bear. Dell has a rough road in front him & mandry is right, Dell services are lacking compared with HP. I honestly don't think you can compare the 2 anymore. 2 entirely different companies.

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Andrew
Andrew - Tuesday July 15, 2008 02:04PM EDT

Terrible customer service!

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Chad
Chad - Tuesday July 15, 2008 09:16PM EDT

You guys are all idiots. All you have to look at is Dell's liquidity. As for service, the latest numbers actually show Dell ahead of HP in customer satisfaction. The only place Dell lags is consumer and they are working that. I do not see a 64 billion $ company going out of business anytime soon. Mark my words, Dell will be back in the #1 spot before the end of 09 in PC market share. Dell is already #1 in x86 Server share in the US and #2 WW. Dell was the only one who grew faster than the market last quarter in servers so they are on pace to take over HP in x86 server market share by the end of 09. The haters just kill me. You need to thank dell for the low prices you pay for computer these days. Do you think HP, IBM, Compaq would have provided that to the masses? I think not!

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Daniel
Daniel - Tuesday July 15, 2008 11:18PM EDT

Dell will move back to its former #1 position because Michael Dell is the best Corporate Executive Officer in the world.

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Daniel
Daniel - Tuesday July 15, 2008 11:20PM EDT

Dell will move back to its former #1 position because Michael Dell is the best Corporate Executive Officer in the world.

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Mark F
Mark F - Wednesday July 16, 2008 02:50AM EDT

I like taters!

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