Dell takes $2bn from PC business to grow enterprise division

Dell is taking $2 billion out of its business, mainly from its PC division, to reinvest in its enterprise business

Dell is taking $2 billion out of its PC division to reinvest in its enterprise business.

Dell chief financial officer Brian Gladden said the enterprise division would grow to a $27.5bn business by the end of 2016.

“The $2 billion cost program will help fuel some of the investments on the enterprise side,” he explained.

This could be bad news for customers of Wyse thin clients. In April Dell announced it would bolster its desktop virtualisation roadmap with the acquisition of thin client specialist Wyse Technology.

Chairman and CEO Michael Dell (pictured) said the company was shifting approach: "Dell is an end-to-end solutions provider today as we continue to build out our data center, software and services capabilities. 

"We have changed the conversation we’re having with our customers. 

"We are a solutions company first, vertically focused and creating more value for customers with innovative offerings that provide competitive advantage."

Dell aims to continue shifting its mix of operating income to enterprise technology and services that scale vertically and horizontally with customer needs.

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