Wednesday, March 3, 2010

Technology Rebounds : Dell

The following day, his counterpart, Dell Chief Executive Michael Dell also spoke of "the beginnings of a refresh cycle," but also noted that it will likely take time and stretch "well into 2011."


As you can see from above, it is almost time to change your processors and PC units in the office. It is time for a whole new set of purchases with the offset of cloud computing and the development of even faster processors.


The correct term is actually retrofit.



With the rise of computer units, many other companies will benefit. An example would be that of Intel. They will be the sole provider of chips as they are the biggest manufacturers of chips in the world and they are also producing processors for the big computer manufacturers as well. So, it might be to time to get yourself packed with Intel stocks. But, the time is not ripe yet.


Why not, you might ask.


Well, the answer links back to the embattled economy we are right now. Most of the citizens are still floundering, trying their best to get a great job to sustain their livelihood. The majority are faced with a gamut of conundrum. They are worried about their utility bills, maintainence fees and the rising cost of consumer products as the economy is recovering.



However, the problem is that the citizens' income is not recovering as fast as the economy and thus, most of them will be left behind.


Hence, we should not be too impatient because alot of enterprises are still contemplating whether to refresh their systems this coming July. For now, most of them believe that they can easily put off another year before they renew their systems because they are still able to deal with the demand with their current systems and that there is no reason for them to incur more costs at this point in time.


Many are still playing on the safe side where they try to use minimal employees to achieve the best results, which is to say they are optimising the effectiveness of their operations with the least costs.



Having to spend an exorbitant amount on renewal would mean overwriting all their savings and earnings thus far. Well, you might say that it is for the long term goal but if no one is doing it right now, then I don't see many reasons to do so.


Furthermore, this might not be a prime time to invest in new units as they are still priced on the higher end. Perhaps, if they wait a while more, with the economies of scale and when the supply far exceeds the demand, they will be able to save a huge amount of money.


All in all, it is imperative that they must renew their systems in order to surpass their peers and to rise above all. This is perhaps a prerogative for the gargantuan corporations.



Credits -marketwatch, -digitalblueglobalfiles, -empiresafe, -istockphoto

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