Mailbag: Readers dissect Dell

I got quite a few responses to the newsletter I wrote earlier this month talking about the goings-on at Dell. Not surprisingly, a lot of the reaction was pretty negative regarding Dell and its services and support – an area where Dell has been struggling. But readers didn’t completely write off the company, either.

Dell obviously is in need of some changes and the changes are happening. Last week, CEO Michael Dell announced a big shift for the server maker, saying that the company would focus on expanding its sales through commercial – and consumer – retailers. That’s quite a strategy change for the company that was built on the idea that selling directly to the buyer was the way to keep costs low. But it’s also good news for buyers who may be wary of Dell support; they can buy Dell hardware from resellers that could also provide services.

Even before Michael Dell announced the company’s new reseller approach, one reader suggested that the direct model may be outdated: “Should Dell scrap its direct sales model? Direct sales infers bypassing the middle man. This implies a lower cost structure, which customers expect the vendor to pass on in savings. If there is no or little difference between buying direct or buying from a reseller, then where's the perceived value?”

To continue reading, register here and become an Insider. You'll get free access to premium content from CIO, Computerworld, CSO, InfoWorld, and Network World. See more Insider content or sign in.

I got quite a few responses to the newsletter I wrote earlier this month talking about the goings-on at Dell. Not surprisingly, a lot of the reaction was pretty negative regarding Dell and its services and support – an area where Dell has been struggling. But readers didn’t completely write off the company, either.

Dell obviously is in need of some changes and the changes are happening. Last week, CEO Michael Dell announced a big shift for the server maker, saying that the company would focus on expanding its sales through commercial – and consumer – retailers. That’s quite a strategy change for the company that was built on the idea that selling directly to the buyer was the way to keep costs low. But it’s also good news for buyers who may be wary of Dell support; they can buy Dell hardware from resellers that could also provide services.

Even before Michael Dell announced the company’s new reseller approach, one reader suggested that the direct model may be outdated: “Should Dell scrap its direct sales model? Direct sales infers bypassing the middle man. This implies a lower cost structure, which customers expect the vendor to pass on in savings. If there is no or little difference between buying direct or buying from a reseller, then where's the perceived value?”

Another reader said that he sold Dell from 1999 until 2003, but now standardizes all of his clients – both server and desktop – on HP.

“Not all they do is horrible,” Adam Busch, who runs Bush Technologies, says of Dell. “They have one of the easiest support Web sites out there.”

But Busch also complains that Dell doesn’t treat its partners well. That’s something Michael Dell is hoping to change with the new sales strategy that will include better training and technical support for its resellers.

At the same time, another readers questions Dell’s approach to fixing its troubles. “Perhaps Dell should focus on quality, rather than sales models.”

Regardless, it will be interesting to see how this sales shift pans out.

Editor's Note: Does Apple belong in enterprise data centers?: We're putting together a story to be published in Network World looking at the enterprise-readiness of Apple technology, and we need your help. Have you deployed or evaluated Apple's XServe servers or its XServe RAID storage platform? What did you find? Do you think Apple's server and storage gear is ready for enterprise data centers? What are the biggest drivers or deterrents? Should IT administrators become more Mac friendly? We're looking to tap into our readership and share your experiences with our audience. Please send your ideas and contact information to senior editor Deni Connor.

Read more about data center in Network World's Data Center section.