Dell Inc. (DELL) recently announced that a range of hardware including servers from Dell OEM Solutions will be deployed by Tripleplay Services, a leading provider of Internet Protocol television (IPTV), Video Streaming and Digital Signage solutions. Financial terms of the deal were not divulged.
Tripleplay Services’ IP media solutions are designed to meet the needs of closed communities, including corporate, education, hospitality, health and residential accommodation.
Tripleplay’s decision to migrate from Hewlett-Packard Co. (HPQ) was largely on account of the lack of clarity regarding the latter’s product roadmap, as well as the higher level of support promised by Dell OEM Solutions.
Dell’s extensive product portfolio and comprehensive services help its OEM customers power their own solutions. OEMs use its products to efficiently design, develop and deliver their Dell-powered technologies. Tripleplay Services now joins the group of OEMs, with the ability to achieve economies of scale and reduce or eliminate complexities and overhead costs of bringing a product to market.
In another development, Dell was chosen to offer its Fluid Data solutions (or enterprise storage solution) to luxury jet service provider Flight Options. The solution was developed by Compellent Technologies, which was acquired by Dell in December 2010. The solution will help Flight Options improve the reliability, scalability, efficiency and automation of its virtualization efforts, at the same time reducing costs and Storage Area Network management time.
Over the past few months, Dell has been focusing on expanding its networking capabilities and enhancing its server and storage portfolio for a wider and more comprehensive enterprise offering. We believe this approach is exactly what Dell needs to compete against the likes of Cisco Systems Inc. (CSCO) and Hewlett-Packard Co.
Though we understand that soft demand in the Consumer segment, a high debt level and stiff competition from technology majors will remain concerns, we feel that Dell will successfully capitalize on increased IT expenditures and show top-line improvement.
Currently, Dell has a short-term Hold recommendation, as indicated by the Zacks #3 Rank.
