"When the going gets tough, the tough get going." Dell has lost significant PC market share to Hewlett-Packard over the past few quarters, so according to industry analysts, Dell has wisely decided to focus on small business users–one of the company's strengths.


Enter in Vostro–desktop computers, printers and monitors designed with small business users in mind. Not only has Dell designed the products with the needs of small business in mind, the company has also instituted a dedicated support center and free support tools for a full year after customer purchase. Great idea: the entire Vostro program is designed for companies with fewer than 25 employees–which accounts for a huge percentage of businesses across the country.
Additionally, the Vostro set-up process has been streamlined and made easy; six steps and six minutes connect a Vostro PC to a company network. Dell has also announced the Vostro PCs will ship without any "trialware," Dell's tag for unwanted software applications many PC makers load into new computers. Dell customers had complained about this in the past, and the company was listening.
According to Merle Sandler, senior research analyst at IDC, "They (Dell) still have a lot of brand equity in the small business market, and they're extending that with this offer. With the services, they become a trusted advisor, and hopefully down the road they can turn that into a revenue stream." Other industry analysts aren't so sure. Gartner described Dell's new venture in this way: "looks more like a branding exercise than a finely tuned small business strategy."
The Gartner report concludes in this manner: "Dell will have to enhance Vostro with a rich set of services and a complete go-to-market strategy to make a difference". It looks as though this is Dell's ultimate plan. And if all works according to plan, the company has a real chance to move past product sales to strengthening its relationships with its key customers: small business owners. Michael Dell, in a recent press conference stated: "Small business is a rapidly growing market. It's also a place where there is enormous demand and need for technology. . . Our customers all tell us, 'Make it simple.'"
So, by listening to its customers, giving them what they want, and hopefully working the bugs out of product and service, Dell could have another major hit on its hands. Vostro–remember that name. Let's see how this unfolds. . .