Dell Inc. (DELL) recently secured deals from the Kerrville Independent School District and Green Clinic Health System. While Dell will upgrade the technology for this school, it will provide the Clinic with a complete technology solution.
Dell will help Kerrville replace the existing Cisco networking system with an upgraded one to meet the increasing computing needs of the teachers and students. The company will deploy a virtual desktop environment to maximize the teaching and learning environment both at school or at home. The school will get server, storage, wireless, software, devices and technological support from Dell. Cisco’s products are usually sold at a premium, so Dell’s win could be the result of more aggressive pricing. It is still a positive given the situation Dell is in at present.
Under the deal with the Green Clinic Health System, the IT company will deploy a complete range of solutions and services at the clinic. This will improve the access, sharing and protection of vital electronic medical records, thereby transforming the patient care delivery system.
Dell’s solution will span across end-user computing, servers, systems management and security software. It will improve productivity and patient care while reducing costs and complexity.
Dell has been scoring a few wins in the recent past. However, reduced technology spending by different governments and the ongoing European economic turmoil are pressures on its business. Particularly so because the company has historically had lower exposure to the consumer segment.
Therefore, to offset the effects of the economic slump, Dell is exploring other markets and business segments. Moreover, the company is expanding its business across different geographical regions.
Currently, Dell has a Zacks Rank #4 (Sell). Investors could, however, consider other technology stocks like NetApp Inc. (NTAP), Micron Technology Inc. (MU) and EMC Corp. (EMC). While NetAppcarries aZacks Rank #1(Strong Buy), the other two hold a Zacks Rank #2 (Buy).
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