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Strategy Frategy: Why is Dell going to Middle East?

Clearly Dell, VMware and Intel are cuddling up pretty much lately. HP is getting a cold shoulder and is increasingly looking in different directions for other allies. As a security sidekick , McAfee will tie up eventually into VMware's band of brothers.

Microsoft is going strong with Citrix and going for various data center strategies. I am predicting (and this is also based on talks that I have had with several friends across the industry) that Microsoft will eventually make peace with Symantec and completely absorb it in its Data Centers. That is why I supported or should I say agreed with Ashlee (for once) that it might be a great idea to tie up with or buy out totally the Rackable and have a "containarized strategy" themselves to unleash when needed.

So the only thing is that Dell is in it to grab some market share from HP. Since HP is too busy increasing its employee base and going after IBM which is still enjoying its market position. Now IBM has nothing to go after, except newer markets, which won't surprise me either. Anyways coming back to Dell, they just need to sharpen their teeth and need to understand that it takes far more that just doing the "ala walmart" kind of lethal SCM to get plastic boxes deliverd on your doorsteps. HP has gained huge experience in doing so, and in a lot of emerging markets even with most disputed products (read: not so environment friendly ones) such as printing/ink. That emerging market was India, by the way.

So after Dell gains its knowledge into the "art of aryanization" they will then be ready to do the soft-parse version of the "Ocean penetration" with the "Estuary-Ocean" or which I often call the "Funnel Strategy and Puddle Convergence Framework". And this is truly an art. An art that GE, IBM have learnt well and have taken decades to understand that cultural compatibility is really something and should not be ignored. HP is getting better at their game but they have still a long way to go.

Dell is taking a lot of extraordinary efforts to learn that art. As a firm that has to learn to grow , both organically as well as inorganically, and on a alien terrain, is definitely not an easy nut to crack. But I am pretty confident that Michael Dell is constantly meeting and talking to tons of people and getting faster in his game.

That's why Dell is going to Middle East. And oh yeah, they are also promoting Virtualization.


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