Michael Dell Recognizes Blocking What Customers Want To Protect Your Own Biz Model Is Dumb

from the smart-man dept

There have been lots of different writeups on Michael Dell's recent Churchill Club talk, with most focusing on his trashing of netbooks or talking up Windows 7. But at the end of that article there was something even more interesting, which Derek pointed out to us:
Clark asked Dell about the fact that, through virtualization, many companies end up buying fewer servers, and less hardware in general. "The first thing you have to remember is that any time a new technology comes along that's good for customers, you get in the way of it at your own peril," Dell said.
Indeed. This is a point that so few companies seem to recognize. Instead of focusing on what the customers actually want, they freak out about how it may cause them to sell less of what they currently offer. This is the key in avoiding the innovator's dilemma and marketing myopia. You have to focus on what benefits the customer actually gets -- and if you try and get in the way of that, they'll just go somewhere else instead. But it's so rare to hear execs actually recognize that point -- so, kudos to Michael Dell for acknowledging it.

Filed Under: consumers, michael dell
Companies: dell

Reader Comments

Subscribe: RSS

View by: Time | Thread

  1. icon
    senshikaze (profile), 16 Oct 2009 @ 4:50am

    Re: Servers

    And if you have ever spec'd out a fully loaded blade system (just one chassis, mind you) then you will see that virtualization isn't hurting the big 'D'

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Show Now: Takedown
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.