In line with its new strategy, PC maker Dell Inc. (DELL) is rapidly expanding into other areas. The company recently came up with new Dell Quickstart Data Warehouse Appliance 1000, which is expected to improve the efficiency of mid-sized organizations to derive business data from an existing data bank, thus speeding up the decision-making process of businesses. The latest data warehousing solution caters to mid-sized and departmental customers. According to Gartner, the data warehouse is emerging as a focal point of the information management and analytics segment, since it enhances the efficiency of businesses and helps them operate even in a difficult economic situation.
This apart, Dell has also introduced the Predictive Analytics-Based Decision Support System for schools and universities. This is basically a decision support system which helps personalize the learning environment for students and enhances expertise in planning, management and reporting.
The solution helps to improve student performance and develop operational data, and also deploys predictive analytics, which will in turn help educators monitor the student's progress and help them to improve their success rate. The main purpose of this solution is to accumulate and manage student's data between different schools, which is then used to help parents and educators develop a particular skill set in the student.
Moving on similar lines, the company is consistently coming up with new solutions to grab new customers. The company has recently launched a marketing automation software from Pardot-as-a-service to help enterprises carry out cost-effective demand generation programs that are easy to track and measure.
The new offering is expected to help Dell expand its portfolio of Software-as-a-Service (SaaS) solutions, which are specially targeted at small and medium-sized organizations and help them to manage and grow their businesses.
The marketing automation solution from Dell is specifically designed to help marketing organizations cater to customer needs effectively, and includes services for establishing email campaigns, developing web site forms, and integrating Google (GOOG) AdWords and CRM systems. As with all Dell Cloud Business Applications, this new solution includes pre-packaged implementation services that are designed to accelerate adoption and time to value.
The company is constantly evolving through its new solutions, so most of the growth is currently expected to come from its software solutions business. Since Dell's business has been focused on PCs, so the company has had to refocus and diversify its business to come up with new solutions.
On the other hand, macroeconomic factors, currency and competitive challenges remain headwinds for Dell. Moreover, the company faces certain sales execution issues, which may affect the time when sales are closed and delay the revenue recognition process. This apart, some modest accounting issues along with volatility in the currency market may also affect the company's business.
Currently, Dell has a Zacks #4 Rank, which implies a short-term Sell rating.