Dell Cutting Costs

Dell Cutting Costs

Posted by admin on June 19, 2015 at 1:17 pm

Dell, Inc. is cutting costs to try to stay afloat amid increased competition, Statesman.com reports.  Dell’s new program is intended to cut more than $2 billion in operating costs by 2016.

Dell
wants to reinvent itself as an “end-to-end” IT solutions provider and
plans to put most of those savings in its new business lines, which are
more profitable.  They did not say whether the cost-cutting will include
jobs. 

The company believes it can grow its traditional end-user
computing business to $47 billion by 2016, which was $43.4 billion in
2011.  By focusing on the most profitable product lines, Dell expects
more than 5 percent of its operating income to come from the traditional
part of their business.

CEO Michael Dell stated that Dell’s
client business is the most successful at attracting new customers in
emerging markets.  The company then works tirelessly to add on to its
sales to business customers by selling more leading-edge products,
software and services.

Dell continues to buy new companies with
technology they can then sell to enterprise business customers.  Dell
has spent $10.3 billion so far on this enterprise and those companies
have generated $9.3 billion in revenue since they were acquired.  The
growth of this segment is averaging around 90 percent annually.

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