Dell (DELL) Looks for Windows 7 Boost

October 21, 2009 8:16 AM EDT
Dell (Nasdaq: DELL) is hinging its hopes on the success of the Windows 7 launch, which will begin moving out of tech-stores worldwide tomorrow. The company is the world's No.3 personal computer manufacturer and sells all of its PCs with the Windows line of operating system. The new addition to the Microsoft (Nasdaq: MSFT) family will be the key to allowing the market to forget the Windows Vista disaster.

"Windows 7 is the best quality product launch that Microsoft has had in a very long time," Dell president for large enterprise Stephen Schuckenbrock said to Reuters. "When you consider that Vista was a bust, Windows 7 is a capability upgrade on a scale that has really never been seen before."

After a third quarter that saw Acer surpass Dell as the World's No.2 PC brand, the company will be looking to use the launch of Windows 7 to help expand its service capabilities and virtualization software in the coming months. The PC market has become highly commoditized and margins for profit are quickly decreasing.

The software possibilities for Dell, which recently acquired the software service provider Perot Systems, is optimistic about the possibility of expanding into higher-margin business with the aid of the new operating system.

With businesses working on outdated computers on aging servers, and consumers wait to see that Windows 7 is not another Vista atrocity, the PC market is poised to move. Dell has stated that demand for business computers will rise as soon as mid-2010.

Before the markets open today Dell is trading at $15.35, with Microsoft at $26.37.

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