Where does Dell’s future lie?

Looking at Dell’s financial results released today, there’s no question that a strategic overhaul would serve them well.

The struggling computer giant saw its second-quarter profit drop 72% from the same period last year to $204m, while its revenues remained flat at $14.51 billion from $14.48 billion.

The Texas-based company, which made its name in a PC business, is losing out to a rising market for tablets, not a significant part of its business, and smartphones, which it does not make.

However, good news came from its Enterprise Solutions, Services and Software group, whose revenue totalled $5.8 billion and grew 9%year over year. These figures included sales from the 2012 acquisition of California-based software tools company Quest Software, which since has been rebranded to Dell Software.

These units could be the great assets of the future and John Swainson, president of Dell’s software division, said the company has been investing more than ever to make it happen.

"Since Fiscal Year 2011, Dell has completed 19 acquisitions," he told CBR in an interview this week.

"While these acquisitions have been across Dell’s four businesses, the key ones for Dell Software have been KACE, SonicWall, AppAssure, Quest, Boomi and Enstratius. They have helped build out Dell Software’s capabilities and address customer needs when it comes to security, cloud, data back up and protection, systems management and application modernisation.

"Through a combination of M&A, organic innovation and product integration we will strengthen our portfolio and extend our value to customers."

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