Leading computer manufacturer Dell Inc. (DELL) recently announced a partnership with Liquidware Labs. Under the partnership agreement, Liquidware Labs will provide virtual desktop assessment software and will also implement tools, which in turn will help Dell transform numerous customer desktops into a virtual environment.
This strategic agreement empowers Dell to use Liquidware’s Stratusphere and ProfileUnity software in order to transfer data from the existing user desktops to the virtual desktop setup. This actually helps system administrators gain a better access to the desktops and enhance systems management.
Dell has always grown through partnership programs. Recently the company entered into a strategic agreement with Microsoft Corporation (MSFT). This partnership will allow Dell to use Windows Azure to enhance its cloud services.
This strategic agreement empowers Dell to use Liquidware’s Stratusphere and ProfileUnity software in order to transfer data from the existing user desktops to the virtual desktop setup. This actually helps system administrators gain a better access to the desktops and enhance systems management.
Dell has always grown through partnership programs. Recently the company entered into a strategic agreement with Microsoft Corporation (MSFT). This partnership will allow Dell to use Windows Azure to enhance its cloud services.
The new Windows Azure platform appliance combines Windows Azure and Microsoft SQL Azure with Microsoft-specified hardware, enabling on-demand IT capacity and faster delivery of new applications. By deploying the application in their respective data centers, large enterprises and service provider partners will be able to benefit from the cloud services provided by Microsoft.
So it is clear from the above two strategic partnerships, that Dell is clearly focusing on the virtualized computing and the cloud computing platforms. As per the recent findings of the technology research firm IDC, cloud computing is expected to generate 19% additional growth in software spending by 2013–2014. Additionally, IDC forecasts cloud spending to grow five times faster than all applications spending, representing a CAGR of 26%. So it can be inferred that the segment offers good business prospect in the days to come.
New products, a stronger services business, opportunities in cloud computing, Electronic Medical Record sector, smart phone initiative, along with IDC and Gartner’s increased 2010 PC shipment numbers are positive for the company. The acquisition of Perot Systems has also expanded the customer base and opened up cross-selling opportunities.
On the other hand, its relative weakness in emerging markets and an average performance by mobile/consumer segments of the PC market and the high level of debt are matters of concern.
We are reiterating our Neutral recommendation on Dell, with a short term Zacks # 3 Rank.
So it is clear from the above two strategic partnerships, that Dell is clearly focusing on the virtualized computing and the cloud computing platforms. As per the recent findings of the technology research firm IDC, cloud computing is expected to generate 19% additional growth in software spending by 2013–2014. Additionally, IDC forecasts cloud spending to grow five times faster than all applications spending, representing a CAGR of 26%. So it can be inferred that the segment offers good business prospect in the days to come.
New products, a stronger services business, opportunities in cloud computing, Electronic Medical Record sector, smart phone initiative, along with IDC and Gartner’s increased 2010 PC shipment numbers are positive for the company. The acquisition of Perot Systems has also expanded the customer base and opened up cross-selling opportunities.
On the other hand, its relative weakness in emerging markets and an average performance by mobile/consumer segments of the PC market and the high level of debt are matters of concern.
We are reiterating our Neutral recommendation on Dell, with a short term Zacks # 3 Rank.
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