Adobe

Description

Adobe Systems' role as a leading desktop publishing software provider is well documented. The company offers the ubiquitous Acrobat Reader (distributed free of charge), a tool that displays portable document format (PDF) files on the Internet. The company's Web and print publishing products include Photoshop, Illustrator, and PageMaker. Adobe's offerings also include print technology geared toward manufacturers, as well as Web design (GoLive) and electronic book publishing software. Its InDesign publishing package provides professional layout and design applications. Adobe's Professional Services group offers implementation, training, and support.RETURN

Dell Inc.

Description

Whether you spend most of your time in a cubicle or on a couch, chances are good that there's a Dell in front of you. The world's #1 direct-sale computer vendor provides a broad range of computer and entertainment products for the consumer and enterprise markets. In addition to a full line of desktop and notebook PCs, Dell offers network servers, workstations, storage systems, printers, LCD and plasma televisions, projectors, and Ethernet switches. The company also markets third-party software and peripherals. Dell's growing services unit provides systems integration, support, and training.

Entrepreneurial wunderkind Michael Dell pioneered the direct-sales model for computers and took the company from his dorm room to the top of the PC heap by keeping it focused on a simple formula: Eliminate the middleman and sell for less. Dell's built-to-order boxes allow for lower inventories, lower costs, and higher profit margins -- elements that leave it well armed for the PC price wars and IT spending recessions.

Early in 2007 Dell was renamed CEO, a position he had ceded to his hand-picked successor, Kevin Rollins, in 2004. Rollins' resignation came as the company struggled with a number of difficult issues, most notably disappointing earnings and an SEC investigation into its finances. Immediately following the shakeup, Dell announced streamlining measures including a reduction in managers and the elimination of 2006 bonuses.

Dell has built its fortune with the industry-standard Wintel platform (Microsoft Windows operating system and Intel microprocessor) as its foundation. Intel has traditionally enjoyed an exclusive relationship with the company, but in 2006 Dell announced plans to use chips from AMD in some of its high-end servers. The company also announced plans to open retail locations in Dallas and New York; the Dallas store was completed, but Dell canceled plans for the New York site in 2007. The company -- which already operates numerous informational kiosks in malls and airports -- remains committed to its direct sale model, and its retail store only carries display models.

Dell faces intense competition from Hewlett-Packard, whose market share increased dramatically following its acquisition of perennial PC leader Compaq. Dell generates about 80% of its sales from desktop and notebook PCs. The company diversified its PC offerings in 2005 with the launch of XPS, a line of high-end desktop and notebook PCs for gamers and others willing to pay premium prices for top performance. The following year Dell acquired high-performance PC specialist Alienware, which operates as a standalone subsidiary with independent branding and operations. Dell's PC profile took a hit in August 2006, when the company announced that it would recall more than 4 million notebook computer batteries with cells manufactured by Sony.

Far from limited to PCs, the company is also a leading provider of server computers and storage devices for enterprises. Dell augmented its storage line when it reached an agreement with market leader EMC to resell that company's enterprise systems. Furthering its push beyond PCs, Dell has introduced a line of Ethernet switches, and consumer electronics such as LCD televisions. It originally partnered with Lexmark to develop a line of Dell-branded printers, and it has formed additional partnerships to quickly grow its printing line.

On the services front, Dell has mirrored its straightforward approach to hardware sales, embracing a fixed-price model for offerings such as data migration and storage systems implementation. The company is also looking to international revenue to supplant sales in the PC-saturated US market. Dell's operations in the Asia/Pacific region are based in Singapore, and include manufacturing units in China and Malaysia. Early in 2006 the company announced an aggressive growth plan for its Indian operations that will affect its existing call center and development units and possibly include the creation of a new manufacturing center.

Founder, chairman, and CEO Dell owns about 9% of the company.