Microsoft
DESCRIPTION
How does a company keep growing when its primary products are already ubiquitous? If the company is Microsoft, it takes on other markets. Microsoft Business Solutions, the software giant's enterprise software division, offers a wide range of software applications for small and midsized businesses. Comprising the operations that produce the Microsoft Dynamics product suite, the division offers software for accounting, customer relationship management, supply chain management, analytics and reporting, e-commerce, business portals and online business services, human resources, manufacturing and retail management, field services management, and project management.
In 2005 Microsoft launched a new brand for the products formerly known as Microsoft Business Solutions, renaming them Microsoft Dynamics. Microsoft will continue to use Microsoft Business Solutions as the internal name for the business unit.
Microsoft Business Solutions was formed in 2001 when Microsoft combined the operations of accounting software maker Great Plains Software -- which Microsoft purchased that year for $1.1 billion in stock -- with its existing small business software operations, including the bCentral small business services unit. The division grew in 2002, when Microsoft bought Danish enterprise software maker Navision for about $1.5 billion.
Dell
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, handheld computers, 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 Dell well armed for the PC price wars and IT spending recessions. In 2006 the company announced plans to open retail locations in Dallas and New York. Dell -- which already operates numerous informational kiosks in malls and airports -- remains committed to its direct sale model, and the stores will only carry display models.
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. It also added search giant Google to its list of server customers.
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 handheld computer, 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 and chairman Dell owns about 9% of the company.