Dell is offering all of its 25,000 employees a Dell Venue Pro Windows Phone 7 smartphone, in exchange for their BlackBerry smartphones, as well as offering a new service to their clients to help them switch from BlackBerry’s.
Brian Gladden, Dell’s CFO had the following to say about the change: “Clearly in this decision we are competing with RIM, because we’re kicking them out.” Switching from BlackBerry will save Dell 25 percent of phone costs (as they won’t have to pay the monthly BlackBerry fees), and they’re even looking to recoup some of the costs by “creating a site on eBay where we can actually sell these BlackBerry devices.”
Cost Savings and Efficiency
The decision to switch from BlackBerry to Windows Phone 7 is driven by significant cost savings and operational efficiency. By eliminating the monthly fees associated with BlackBerry services, Dell expects to reduce its phone-related expenses by 25 percent. This is a substantial saving for a company with 25,000 employees. Additionally, the move to a unified platform can streamline IT support and maintenance, as managing a single type of device is generally more straightforward than dealing with multiple platforms.
Moreover, Dell’s plan to sell the old BlackBerry devices on eBay is a strategic move to recoup some of the transition costs. This approach not only helps in offsetting the expenses but also ensures that the old devices are reused, contributing to environmental sustainability by reducing electronic waste.
Strategic Alignment with Microsoft
Dell’s decision to adopt Windows Phone 7 aligns with Microsoft’s broader strategy to promote its mobile operating system. Recently, Microsoft announced that it would be giving away 89,000 Windows Phone 7 smartphones to its employees. This move by Dell can be seen as a vote of confidence in Microsoft’s platform and a step towards deeper collaboration between the two tech giants.
The Dell Venue Pro, with its sleek design and robust features, is well-suited for business use. It offers a full QWERTY keyboard, which is a significant advantage for professionals who need to type emails and documents on the go. The integration with Microsoft Office and other enterprise applications makes it a compelling choice for business users.
Additionally, the Windows Phone 7 platform offers a range of features that enhance productivity and connectivity. For instance, the People Hub integrates contacts from various sources, making it easier for users to manage their communications. The Office Hub provides access to Microsoft Office applications, allowing users to view and edit documents, spreadsheets, and presentations directly on their phones.
Implications for the Smartphone Market
Dell’s decision to switch from BlackBerry to Windows Phone 7 has broader implications for the smartphone market. It highlights the shifting dynamics in the enterprise mobile space, where BlackBerry once held a dominant position. The move underscores the growing competition between different mobile operating systems and the importance of offering features that cater to business users.
For Research In Motion (RIM), the maker of BlackBerry, this is a significant blow. Losing a major client like Dell could signal challenges ahead as more companies might consider switching to other platforms that offer better cost efficiency and modern features. On the other hand, this move could be a boon for Microsoft, as it gains a foothold in the enterprise market, which has traditionally been dominated by BlackBerry.
In conclusion, Dell’s decision to offer its employees Dell Venue Pro Windows Phone 7 smartphones in exchange for their BlackBerry devices is a strategic move aimed at reducing costs, enhancing operational efficiency, and aligning with Microsoft’s mobile strategy. This transition not only benefits Dell but also has broader implications for the smartphone market, signaling a shift in the competitive landscape.
via Gizmodo
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