Dells Buys Alienware - Discuss Politely - Page 29

I wouldn't say that, and heres why: once the prices go down, they will get more sales, and when they get more sales, they get more money, and when they get more money, they buy more technology, and when they do that they get even more sales, and finally when that happens they will be forced to expand and put retail stores all across the US, making the AW simply another generic computer company and soon everybody's brother will have an Alienware.

Alienware machines at the Dell Kiosks in Malls across the country is a very logical next step. The cost would be minimal. But switching to an inventory retail system would be a deviation from Dell's build after its ordered system which has helped made it the giant it is while keeping costs down.

that might be the logical step, but it takes the uniqueness out of owning an AW. it won't be much of a thrill anymore.

Even if AW were to disintegrate into something for the LCD masses, I wouldn't fret. No question there's a demand for this kind of higher end product and someone out there will build it if they can make a buck doing so. While it might not be Alienware, it will be something else like Predatorware.

Marketing loves a vacuum.

On another note, is Dell going to integrate tech support for AW, or will AW continue to maintain that in-house? Sorry if this question has already been asked and answered.

According to internal memos from Dell that were posted on the net, no cross sales will occur. Alienware computers won't be available in Dell outlets, and you won't be able to buy a Dell at AW.

Alienware is retaining it's call center, that includes sales, tech support and customer service.

I think it would be a good idea though if Alienware had access to Dell's local support techs, so more repairs could be done in people's homes rather than sending the machine off to depot.

that would be perfect. hammer i wish you best of luck and hope you get better.

No offense but you just don't know how to talk to Dell customer support. I have complained many times about minor to major things about all the laptops and systems I purchase from Dell and I have always gotten my way with an even better replacement.

My own two cents. If Alienware doesn't own it and Dell does it would not effect my judgement of the company or the product line if it was still the same guys and gals working there butts off down at the Miami facility to produce those very same machines. Just because it is a new suit making bottom line decisions shouldn't effect the end product or the technicians who build them. Provided Alienware that pre-existed this is given creative control over the process then they will still be the same machines built by the same good people with the added media powerhouse that Dell can offer. I say it will likely be a successful partnership.

Again just my own 2 cents. All opinions are perfectly valid

Thanks for the insight. It too bad really. I would love to go to the Mall and be able to play with an Alienware machine. And i think it would be good for Alienware to get the exposure to the general public. Most people I know who don't game have never heard of Alienware.


(Not even sure I should post this next part in the light of the last few days which is kinda sad.)

Technically Dell does NOT SELL anything at the Kiosks. The locations have no way of taking payment. If you go to a kiosk and want to order one, the guys will help you configure one on-line at dell.com from one of the sample machines.
So the question is: if someone ordered from Alienware.com with the help of a Dell kiosk employee, would that be considered “cross sales”?

for those not familiar with what a Dell Kiosk (name changed to Dell Direct Store) is http://www.dell.com/mall

In other words Peice of dell is just leeching off alienwares money

I truly don't believe that this will be bad for Alienware or its fans. I think I'll be pricing out a lappy and see what happens.

Actually in reality AW is leeching off Dell's money, this whole merger put in to simple terms was made to allow AW to utilize Dell's buying power and world wide structure ot help AW grow. Its good for both companies.

now now

Yes, Dell so needs to leech off Ay-Dubbyas money ... like they couldn't survive without it with their $50 Billion in annual sales worldwide

I very much doubt we'll see Ay-Dubbyas being configured and bought online at the Dell Mall kiosks...

I truly think this will be a good deal for both sides, Ay-Dubbya will benefit in the long term from the extra cash and clout Dell can bring to deals with suppliers (like when Dell had an exclusive on the NVidia GeForce 6800 Ultra) - not to mention the worldwide supply chain hopefully cutting down build-times, while Dell will benefit from the oustanding technical expertise and creativity of Ay-Dubbya ...

Really though we won't know for at least 6 months, maybe even 12 before we notice any changes at all... then we shall see.

What a great benefit it will be if Dell can start using AMD in their new Dual-Core XPS release ...

We shall see ...

What you guys seem to be missing is AW won't be leeching off Dell, or Dell won't be leeching off AW. Dell owns Alienware. The profits from Dell go to Dell, the profits from AW go to Dell.

Dell will not be offering AMD processors in their systems until they resolve their contractual obligations to Intel. If they try, they're inviting a huge lawsuit.

AW will remain as it is as long as Dell feels it's profitable enough, or for the terms of the contractual obligations, whichever is longer.

Dell has a relatively small profit margin, they make their money on volume. Alienware has a relatively high profit margin that the owners used to reinvest in AW to grow the business. It would be stupid for Dell to change things right away due to AW's success, but also due to their biggest nightmare of people thinking AW's are now just rebadged Dells.

Alienware got some contractual obligations from Dell in this deal, I would assume so the guys that built Alienware could make sure their people stayed on, and at least for the short term nothing would change.

These kinds of deals have been going on for quite a while in the US. Sometimes they work out and the seller ends up managing the company for years and they continue to operate the same way and are successful. I hope this is the case with this deal.

Sometimes the buyer either waits until the contractual obligations expire, or they mess with the business to the point that the seller eventually walks away in frustration and the buyer does what he wishes with the company and it's assets.

You must understand that a lot of these assurances that everything will remain the same is because Dell and Alienware know if people get the sense that they're now the same, Alienware will lose it's appeal and Dell will lose their profits. If that happens, that's when the coupons will start flying and corners will be cut. We can't possibly make conclusions on this without seeing the details of the contracts, but we can hope Dell wanted Alienware enough to make concessions, and the owners of Alienware love their creation enough to have demanded concessions that would allow Alienware to continue to follow the path that's gotten them the success they've achieved.

And we can hope that Alienware as a wholly owned subsidiary of Dell continues to make their profits so Dell will allow them to continue to do things as they have for the past ten years.

Dell has never in it's history done a deal like this, so we have no examples as reference. Usually when Dell buys a business, they absorb and assimilate it.

We don't know the conditions of the deal, or why AW felt it was advantageous or necessary perhaps to sell to Dell. The obvious advantages are that Dell can resolve AW's supply issues, and help them become more efficient as they continue to grow.

I think a lot of what drove Alienware before was being a privately owned upstart that was taking on the world. That is a lot of what attracted me to the business. Things are now different, though both Dell and Alienware are doing everything they can to convince us they aren't.

As much as I'd like to be fully on board with this, I'm taking a wait and see attitude. I will be buying another Alienware soon, after that I'll need to see how this deal works out.

I hope Alienware proves to me that I have no reason to be skeptical.

Profits will go to Dell. But it was stated by Nelson himself and pre releases that this move was to help AW financially become more efficient and to take advantage of Dell financial situation and world location status. This moves gives AW the buying power to achieve higher stock levels and leverage provide leverage on oem manufacturers for better prices. They sate nothing about AW is going to chage but they are wanting to provide more, faster better lead times, high stock levels they better be adding higher staffing levels etc. There is still many unanswered question really and it is so easy SPECUALTE what is happening and what is going to happen.

When the company I worked for got bought by the larger comapny I am now apart of lots of things were promised, contractual agreemtns between the old owners and the new conmpany fell through the seam within 6 months and all "promises" fell by the waist side.

The world dominance AW is trying achieve now will be because Dells ability to provide financial stability and community status. Either way it is the only two companies I really deal with, I hope AW survives and stands on its own and Dell deosnt become inpatient with the number game. Either way I will still have a notebook from someone.

Like I said Max, I've seen the releases and all the public information.

Bottom line is without seeing the contracts or knowing if Dell intends to honor them, all we know is Dell owns Alienware at this point. We know what Dell is saying, and what Alienware is saying, and I've never been lied to by the people I know at Alienware, but it's foolish to just assume nothing at all will change.

I'm sure from the customer standpoint, this will all be good as long as things go as their being represented. I'm sure you'll believe me that if they do, I'll be there cheering them on loudly as I always have. In fact this may turn out to be the best thing that's ever happened to Alienware. My point is that there is a factor here that's being ignored. We all must wait and see how this goes.

Nobody would have guessed ten years ago that AW was assured it's success. This isn't the same exactly, but unless you want to be called an AW fanboy like I usually do, you have to take these things into consideration.

I'm a small businessman, so a lot of what I admired was Alienware being privately owned, and growing to where they are from a startup with $10,000. It's truly the American capitalist dream. I will never be in the position of having Dell make me an offer for my business, so I can't say how I would react, and I certainly don't know all that AW had to consider when looking at this offer.

As much as I hope the situation works out like the guys at AW plan, I can't just start saying it will. Alienware will still and always be my manufacturer of choice as long as I still get the quality machines, value and support I've received, but you're not being honest with yourself if you don't recognize the differences. I've made a lot of friends at AW over the years, and I very much hope for them that this goes as they're planning and representing it.

I also understand what it takes to start a business, but can only guess as to how difficult it became to manage Alienware. It's entirely possible that AW was running into limits of the current market the way they were growing. It may have been necessary for them to find a solution to supply and organizational difficulties that would have been difficult to overcome without a huge corporation like Dell giving them the buying power to insure their continued growth. Who knows what would have happened with Alienware's supply chain had they refused the offer.

From what little I know of Nelson and Alex personally, I'm sure they didn't make this decision easily, and they've likely done everything they can to insure the future growth and success of Alienware, including staying on as management. But it's impossible to deny the possibility of this deal having a major impact not only on Alienware, but the gaming industry as a whole either positively or negatively.

I hope what we're being told works out. I really, really do.

I've always shopped around when buying a new machine anyway. If indeed AW doesn't change, they'll likely be my first choice for many years to come.

great way to finish off this thread Hammer, the conclusion: undecided. there are still many factors to consider and as said above, many questions remain unanswered, we can only go by what they tell us. and based on the past experience from AW customers, I think its pretty safe to say that AW has not in the past and will not in the future lie to it's loyal customers. but it is also safe to say, that Dell's influece might be too good. AW might not be lying but they also might not be telling us the whole truth.the fact is AW won't be the same anymore, once the prices go down and they expand to retail stores across the nation, everybody's brother will have an AW. then it just won't be the same, it will have lost it's uniqueness, and it will have lost the special feeling that it's customers get when they hold an Area-51m (at least for me anyway). also as said before, we can speculate all we want, but we can only go by what they tell the public. as for me, I just hope the future of Alienware won't be as bleak as it seems.

I guess that's my point Choco latte,

I'm optimistic about this thing as far as I can be, but I guess in a way I'm saying to AW you've now talked the talk, now show me you can walk the walk.

I'd be willing to bet there are few fanboys out there that want to see AW do well more than me.

If this means better prices and products for Alienware, let's be happy about it