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betajet
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Dell Layoffs
betajet   2/5/2014 1:59:27 PM
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Well, we don't know for sure, but articles like this one at ZDnet sure give the impression that 15,000 employees will be laid off this week.

DMcCunney
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Re: 180 turn
DMcCunney   2/5/2014 11:59:15 AM
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@zewde yeraswork: How do we know that Dell is about to layoff its workers?

We don't, but it's a good bet.

Historically, Dell competed in the PC, server, and networking market on price.  They started with a direct sales model, and later sold through retailers as well as direct (with an interesting time reassuring retail partners that Dell would not compete directly with them by trying to convert retail sales to direct customers.)

They didn't do a lot of R&D because little was needed.  They were selling standard products into an established market, not developing new ones.

As the market contracted, Dell was hit by the same issues as every other US PC maker: the market was "lowest cost ptoducer wins", and Dell wasn't a lowest cost producer.

Dell reacted by going private in an LBO, to escape market demands for returns it couldn't provide.  But while that took them out of the market's eye, it didn't solve their problems.  There are substantial costs to an LBO, and Dell must still satisfy participating private investors rather than public ones.

This looks like a strategic shift for Dell.  Instead of selling standard products into an established market, they are looking at developing new products that will tie into existing infrastructures (and presumably sell for higher prices and much better margins.)

We'll see if this is a "too little, too late" move on Dell's part that they arguably should have done years ago.  But meanwhile, layoffs would be no surprise.  It will be a while before any fruits of the skunk work's operation will be salable products, and meanwhile, Dell's existing business is still hurting.  When you're in that state, you lay off staff to held bring expenses in line with shrinking revenues.  Dell may hire in the future is the new shop comes up with salable products, but the folks laid off now likely won't get rehired - the new products will require a different skills mix the laid-off workers may not have.

JimMcGregor
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Re: 180 turn
JimMcGregor   2/5/2014 11:32:10 AM
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Zewde, the layoffs are a hot topic around Austin and I have a few personal contacts.

zewde yeraswork
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Re: 180 turn
zewde yeraswork   2/5/2014 9:51:11 AM
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How do we know that Dell is about to layoff its workers? From this interview alone, it would seem that they are looking to invest more across the board and that may mean more employment opportunities at Dell down the road.

Susan Rambo
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Predictive security
Susan Rambo   2/4/2014 9:17:57 PM
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"Predictive security will be one of several focus areas for Dell Research, said Menon, using the example of firewalls that can modify their settings based on threats perceived in other regions."   Sounds intriguing.  Maybe Dell should take a look at this predictive security analytics tool Umbrella Security Graph, which is will be offered free to researchers

JimMcGregor
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Re: 180 turn
JimMcGregor   2/4/2014 11:46:44 AM
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This is a rather interesting announcement from a company that is about to undertake a round of layoffs.

zewde yeraswork
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Re: 180 turn
zewde yeraswork   2/4/2014 8:47:25 AM
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Dell itself is calling this a research division, although the rest of us may challenge them on that moniker. Clearly, this indicates a new direction for them. They have never been much into R&D in the past, and this allows them to get into network infrastructure in an aggressive and ambitious manner. We'll see what they come up with.

junko.yoshida
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Re: 180 turn
junko.yoshida   2/4/2014 7:44:43 AM
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@kris, I agree. But this really underlines the big trend that we have already seen -- move from consumer end-point products to adding more smarts and values to the network infrastructure.

I look forward to what Dell's research team comes up with.

rick merritt
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Re: post-PC effect
rick merritt   2/4/2014 2:52:43 AM
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While we don't know the numbers I agree with Resiston, Betajet and Kris that this is less a division and more a small team. That said Menon is a smart cookie and seems to have some good ideas a few of which may come to fruition.

resistion
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CEO
post-PC effect
resistion   2/3/2014 6:58:31 PM
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Seems too little too late a response to adjust to post-PC transition.

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