The tech giant Dell is planning to undertake $2 billion cost cuts over next three years. If reports are to be believed, Dell has taken this bold step in a bid to move a larger part of the business towards the enterprise to increase profitability.
According to Michael Dell, CEO at Dell the cost cuts will come in a number of areas including standardizing PC and server system configurations, moving operations to more affordable geographic areas and making the supply chain more efficient.
Trusted aides informed our team, Dell is likely to reinvest some of the savings attained through the cost cuts into different acquisitions.
It is worth noticing; Dell has already started pouring financial and research resources into the enterprise business, which includes software servers, storage, services and networking.
Checking last 12 months report, it is found; Dell acquired eight companies, many of which are software and security companies tied to the company's enterprise products.
Dell’s big acquisitions made this year include security company SonicWall which is a security vendor that specializes in firewalls, network security and anti spam systems and a software company Wyse Technology.
As far as Dell's PC business is concerned, industry experts believe, the company is likely to keep the PC business lean and jump only into areas where there are more growth opportunities.
No clear hints have been made for as how many job cuts will be made. So, stay tuned to get more information on this.
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