Dell: Why we won't follow HP



Dell founder Michael Dell has insisted that his company has no intention of following rival Hewlett Packard in attempting to shed its PC making business.

Mr Dell has already publicly mocked HP's much-discussed decision to seek alternative routes forward, and he reasons that his company could now have a significant market advantage.

"We are very distinct from some of our competitors," Dell told the Financial Times.

End-to-end
"We believe the devices and the hardware still matter as part of the complete, end-to-end solution," he added.

"Think about the scale economies in our business. As a company spins off its PC business, it goes from one of the top buyers in the world of disk drives and processors and memory chips to not being one of the top five."

"…that raises the cost of making servers and storage products. Ultimately we believe that presents an enormous opportunity for us and you can be sure we are going to seize it."

HP is still seeking to spin off its hardware business and restructure, but the repercussions will be watched with interest by the computer world.

Via FT (subscription)


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