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This is why Dell will own the universe
Posted: 10:52 am
November 9th, 2007
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IT Business

IT is a commodity.

One company realized this over ten years ago, crushed its competitors, and skyrocketed to being the most despised/hated company in the IT Solution Provider space.

That is of course unless you work with Dell and leverage the conveniences and price breaks they bring to market to let you get to the next step but thats common sense and there will be none of it here. “Down with Dell” yells the angry gaypile as it sends wads of cash to Round Rock Texas.

dellserver

Woops. Thats a Dell server costing $50 more than the Everex TC2502 GPC!

Dell competes with IT Solution Providers in nearly every category. They have the largest ground force after IBM, now provide managed services, have a decade of experience providing horrible support from India, tons of customers models and options. About the only thing they do not have is the tablet.

So, as the angry mob fights the paperwork and nightmares of purchasing HP servers, the smart IT providers are teaming up with Dell, making huge profits and investing them in their practice, their value add and their white-glove customer service and customer relationship so the retention stays at its peak.

Or you can just hand crank MSP contracts down every lead and try to beat the indianinabox.com with high school kids. 

6 Comments

andyparkes |

Just a question..

Do they sell HP’s differently in the states?

If i want a HP server i send an email with my order to my account manager at the distributor i use, i get an email back confirming the order then the following morning i get a pallet full of kit arrive at the door

Just curious is all…



vlad |

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Andy, Thats because your country is 3 feet wide by 8 feet long, in US its significantly different if not impossible to get a custom config from HP unless you have a huge volume to deal in their partner program or you buy a stock configuration from a distributor with a hefty markup.

By comparison, Dell purchases are easier than iTunes.

-Vlad



andyparkes |

3 feet by 8 feet?

Sorry i only deal in metres ;-)

Cheers for answering the question

Does that mean Dell servers come with DRM though? :-p



mavmesa |

I am confused.

Make hugh profits with Dell hardware? Perhaps you have a buying channel in Dell that I am not aware of.

A while back, you made a post that seemed to say that if we outsource our pc building, backoffice, help desk, etc, what value do we actually offer to our clients except to be a broker for the services of others. You said that we were not creating anything and that it was sad. Perhaps I misread that post.

I understand the controversy about Dell and I find myself falling on both sides of the fence. I wish that HP was easier to deal with. Frankly, I have gone back to builting many on my own boxes again and charging a premium for it. Part of that white glove service.

Can I compete on price with indianinabucket.com. No, of course not. I have to charge a premium. Part of that white glove service. Is it possible that I might use them if it makes sense? Yes.

I did not get the slap at hand cranking MSP contracts at every lead. Could you elaborate?



vlad |

You make huge profits by delivering solutions Ken, the less fixed cost you pay for your infrastructure (servers) the more is left for you because Dell saves time/money when it comes to purchasing.

There was no slap at hand cranking MSP contracts, its a fact that a lot of people out there do managed services and only do managed services and nothing but managed services and are essentially nothing but LPI/Kaseya/Zenith salespeople. I’m sure they think of themselves differently but there are a lot of people who do not understand the technology they sell but simply the process to get the sale. Those folks will be castrated by Dell.

-Vlad

-Vlad



mavmesa |

Thanks for the clarification.

I know that we have to be more that brokers collecting commissions. Now I see that your statement was consistant with the previous post that I referenced.

I thought you were saying to not bother trying to compete with indianinabucket.com. I would have to lease a megawatt data center and a university full of off shore techs to do that. Just not part of my current roadmap. :)

Must use vendors that reduce administration time. Deliver value add solutions instead of brokering others products and just collecting checks. Add value for the client. Got it straight now! :)

-Ken



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