I recently wrote an article for Hexus.net. It was suggested that I write about the Intel & AMD lawsuit. Rather than doing this, I wrote about the exclusive relationship between Dell and Intel. I have to preface this article by stating that I hold Michael Dell, and Dell in high regard. I also respect Intel and I think their Pentium M design team should all get raises. I still believe Intel as a company seems to have lost their way by underestimating their competition.
I realize that Dell is a machine, and they have the art of manufacturing down to a science. They also have mastered the art of cost cutting, and one could guess that exclusive relationship with Intel has a large bearing on their profitability.
I founded VoodooPC in 1991, and in 1999 I stepped down as CEO so I could pursue my passion of designing new products. I have been the CTO of Voodoo ever since, and as such I get to play with new technology all the time. If you go to our website you’ll see that we normally don’t engage in “logo branding” our partner companies. We normally try to stay on the fence when it comes to choosing technology – but when there is a serious performance difference, we will come out and unbiased and telling it like it is – thus the reason we’ve hosted virtually un-moderated forums on our website for years.
In the marriage between Intel and Dell I always wondered who wears the pants in the family. For years I thought it was Dell, but now I’m not so sure. Dell is an operationally excellent company, and they know exactly how to trim costs and gain market share. Their business is an exact science, and due to ....
I realize that Dell is a machine, and they have the art of manufacturing down to a science. They also have mastered the art of cost cutting, and one could guess that exclusive relationship with Intel has a large bearing on their profitability.
I founded VoodooPC in 1991, and in 1999 I stepped down as CEO so I could pursue my passion of designing new products. I have been the CTO of Voodoo ever since, and as such I get to play with new technology all the time. If you go to our website you’ll see that we normally don’t engage in “logo branding” our partner companies. We normally try to stay on the fence when it comes to choosing technology – but when there is a serious performance difference, we will come out and unbiased and telling it like it is – thus the reason we’ve hosted virtually un-moderated forums on our website for years.
In the marriage between Intel and Dell I always wondered who wears the pants in the family. For years I thought it was Dell, but now I’m not so sure. Dell is an operationally excellent company, and they know exactly how to trim costs and gain market share. Their business is an exact science, and due to ....
The rest of the article can be found at Hexus.net
4 blogger comments:
Dell has the R&D budget to hire people and produce custom painted PCs with windows and superior wiring work if they wanted to. They can make a deal with AMD and request a small supply of CPUs to only support their custom line of PCs and apply their successful direct model to it, if they wanted to. They have the money, resources, and manpower to do everything that Voodoo, Alienware and Falcon-NW does, if they wanted to. And let's not forget Dell's unstoppable marketing locamotive.
But they're not doing it. Because they're focused on generating $80 billion in revenue by 2009, which is a goal you can not reach with the market that Voodoo is in.
You should know what's Voodoo's yearly revenue.
So instead of critizing Dell at their decisions, I think you should be planning on how to deal with Dell when he comes to chew up the gaming market when he has established a firm position in servers, services, and other markets.
You probably have until 2009.
Very interesting perspective - yet this article wasn't intended to criticize Dell, a company who I respect deeply. I also hold Michael Dell in high regard.
The point of the article is to question the exclusive relationship between Intel and Dell and its effectiveness.
If Intel continues to lose, it will only hurt Dell in the high end - that includes servers, workstations, and "luxury" PCs. Dell seems to think Intel will turn it around in less than a year, we’ll soon see.
i wanna say hi to my people out there and wanna invite people to my web
Well, perhaps being tied up with Dell has some advantages for Intel, in that they may be able to make a turnaround in the specified period of time.
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