Michael Dell returns as Dell CEO, this is what he really needs to do

Michael Dell has returned to be CEO of Dell and Kevin Rollins is out, after a few years which saw Dell losing ground to its competition. Not that I would presume to tell Michael Dell how to run Dell, but hey its my blog and I can say what I want.  I think Dell is entering its most crucial period since the 80's, when suffering from quality and customer support issues, Michael Dell brought in a bunch of Bain folks (including Rollins, I think) to turn things around and take Dell to untold heights.

In order for Dell to turn it around, I think the time has come when they have to be more than a PC company.  Yes they are selling a lot of printers, reselling storage and switches, but these are always sort of afterthoughts to PC and servers.  In order to compete with HP, IBM and the like, they have to get serious about selling other hardware, software and most important, services.  They have to compete with these guys on their home turf, just as the competition is coming onto Dell's traditional PC turf.

Where should they go first, network gear. They should target Cisco.  Here is a company with 70% or better of a huge hardware-software market.  A company like Dell can make a dent in this. Dell should go after this market big time. Look at the latest numbers out of HP ProCurve, that is a market Dell could be in, routers, switches, UTM boxes and appliances. Dell has to do a better job of taking ISV's products and selling them on Dell boxes through the Dell channel.  Also a few acquisitions would not hurt.  Reselling other peoples stuff is only going to go so far.  They need to own some of what they are selling.

Dell has one of the largest and best sales team in the world.  With the right products they could bury some of these folks. I have seen the Dell machine up close.  At Interliant we were the OEM for Dell Host for a while. I can tell you that they can turn on the jets.  Michael Dell is the person who makes that company go.  Always has been and probably always will be. I remember seeing emails from him at 3am.  Don't count him out.  I am looking forward to Dell branded gear showing up in a network near you soon.