Technology

Dell: Less Customization Options for the Company's Products

Dell is giving up on Dell

By Bogdan Botezatu, Hardware Editor

7th of April 2008, 07:55 GMT

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Dell is giving up on the services that propelled the company among the top vendors

System builder Dell was one of the industry pioneers in terms of custom-built computing systems, but its recent problems on the market are forcing the company to move away from its build-to-order

business model.

According to Dell's operations chief Mike Cannon, the company will limit the degree to which its customers can alter the default configuration for the systems designed and built by the computer vendor. This is just a part of its strategy to set the company back on track and fight the US market recession.

Limiting the customers' options will complete a series of cutbacks that include dramatic workforce cuts and outsourcing more PC manufacturing to the company's partners.

Dell is currently concerned with getting its market share back, after a prolonged period it only could trail its arch-rival Hewlett-Packard on the systems market. This pursuit accounted for many sales policy shifts, including leaving its direct strategy in favor of selling via Dell's retail outlets.

Cannon did not disclose how much Dell estimates it would save by refusing users' customization options, but claimed that the global operations, including reducing build-to-order options, will account for significant savings in the $3 billion the company needs to cut per year.

"A typical desktop program for Dell can have over half a million different configurations. Why did we do that? Because we could. But now, if customers don't need that, we've got to go rip that cost out," claimed Cannon.

The recent restrictions are likely to severely impact Dell's image on the systems market. By cutting down on customization options, Dell buries a piece of the company itself and gives up on the very engine that drove the company since it was created. Until now, systems tailored especially to fit the customers' needs was the company's coat of arms. We can but wonder what Dell will look like without Dell itself.

TAGS:

Dell | systems | build-to-order | customization

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