Event
Summary
ROUND ROCK, Texas--June 26, 2000--Dell, the world's leading direct computer-system
company, has hired Moe Grzelakowski to head a new business unit that will
help Dell further capitalize on rapidly growing opportunities in wireless
networking within the expanding global Internet infrastructure.
Market
Impact
Demand for wireless Internet access has grown by leaps and bounds in the
past two years. The anticipated advancements in cellular wireless technologies
allowing far faster connection speeds means that the global wireless market
is expected to break the 600 million user mark and break 10 billion (USD)
in market value prior to the end of 2003 (Probability 80%) Given the strong
possibility of extreme growth, companies are driving their wireless business
units into the forefront with e-business, and Dell is no exception.
Dell
has had the foresight to retain a telecommunications professional with
greater than 20 years of experience to oversee Dell's wireless computing
initiatives. Grzelakowski has worked not only with Motorola, but also
with AT&T, and Bell Labs. We expect her contacts will allow the mobile
computing market to be penetrated quickly with a Dell branding. We expect
Dell to take advantage of Bluetooth technology within the next two quarters
and strike alliances with wireless hardware vendors such as Novatel Wireless.
If Dell can make the appropriate alliances within the next 12-18 month
they will be well situated to carve out a foothold in the forefront of
wireless.
User
Recommendations
Simply because Dell has hired a former Motorola executive does not give
them any clear advantage, by any stretch of the imagination. However,
Dell has been an explosive force in desktop technologies and their server
market share has experienced significant growth over the past four years.
In other words, Dell has become a household and backend server room 'household'
name. Given that name recognition accounts for so very much in the technical
industry and that Dell is terribly proactive in emerging technologies,
we expect Dell to emerge as a mobile computing market leader within 24
months (Probability 75%).