Monday, November 23, 2009

What a surprise, Dell earnings down 54%

Really, no one saw that coming. Even me. Revenue was down 15 percent over the last year, and profits fell 54 percent. They blame weak pre-order demand for Windows 7 machine, which is typical of the denial phase when your business is going down. What does Michael think about this?

Founder and CEO Michael Dell said he expects companies to begin to order new PCs as part of the so-called "refresh" cycle starting early next year. "With an aging install base ... an accumulation of new technologies with hardware, software, virtualized clients...IT managers know they can't extend these assets forever," Dell said. "I think it will be a refresh that occurs over perhaps 18 months. I can't remember a time when a high percentage of (IT managers) skipped an entire operating system."

I agree, even we at CGI skipped over the Vista ditch, we’re still running XP with Explorer 6 and although it’s far from being perfect it works okay. Here’s the problem, you entire hardware business depends on how bad Microsoft screwed up with their aging Windows code. PCs are commodities, it doesn’t matter if you buy a Toshiba or an HP laptop anymore. It’s all the same shit.

Michael, if you were a smart man you would sell all your PC business to some nameless Chinese company, admit that Christmas is over, and focus exclusively on Perot, because that’s where the money is. Even IBM who is not the sharpest knife in the drawer understood that a long time ago, but you’re still fighting a war that is basically over. Michael, take a word of advice from that final scene in Chinatown

Jake Gittes: Why are you doing it? How much better can you eat? What could you buy that you can't already afford?

Noah Cross: The future, Mr. Gitts! The future.

Yes, the future. We at CGI understand this very well, IT service is where the future is, nobody cares about nuts and bolts anymore.


No comments:

Post a Comment