So it continues, the EMC management dismantling a successful Dell business unit brick by brick. Could it have anything to do with the fact the Dell GCCS VP was growing business ($1.4b) whilst the EMC manager's number ($400m) was stagnating, even with vxrail numbers, its a server guys!
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Put plain & simple: Dell is a bank.
We do get it, we also cost far less than L EMC and there are far less of us delivering that number. Also remember that whatever margin the servers are sold at MSD enterprises have a margin buffer build in that we don't see.
Wow, those from L-Dell just don't get it. Your servers a VERY low margin. EMC/VMware are much higher margin. Wake up and stop thinking of L-EMC management as the enemy.
Typically Sc's and AE's, mostly S7's some S8's. Remember people almost all of Dell technology products are now based on poweredge servers. Ship loads of them the unit cost drops, more margin is made. Stop shipping and unit cost rises. The Dell staff sold solutions, the EMC staff retained sell what retires their quota.
Which server positions have been eliminated? Can you give level and focus?
What have they done lately to dismantle the Server BU?
The PC business is a marketing tool and gets us into discussions that lead to futures, servers do not, they are a one off large purchase that no one sees . Think about it
I mean . . really honestly think about it
When you have a fleet of PC's/Laptops from Dell, you see Dell logo's and names, you get used to Dell support and Dell engagement . . so it's a no brainer to then consume other product.
Servers, you spend money and they go elsewhere. No reason to do is at a loss.
Negative margin commodity HW. That’s why it’s being dismantled. It’s just a convenience for customers and a headache for Dell. I’m sure he would give it away for nothing if he could.
I think Dell should start making software instead of zero-margin hardware.
Your maths is missing an important point (and Im a Dell person). The commodity server market has commoditised. EG it has no margin. Deals that are $50m are coming in at a loss. No point chasing revenue with no margin.
Storage and VX business has margin and also lock in for more margin. It's not massive, it's not software, but it's a far more profitable business than commodity.
Business 101. Keep selling something at a loss you will lose money.