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Inside Alienware: A Rare Look Behind the Scenes at Alienware Headquaters in Miami, FL




Inside Alienware: A Rare Look Behind the Scenes at Alienware Headquaters in Miami, FL


Highlights:

  • A sit-down with four Alienware executives to talk about the death of PC gaming, how soon an Alienware kiosk with be in a mall near you, and possible plans for a 14” gaming laptop.
  • Curious how much Dell is now at Alienware post-acquisition? We share exactly what we saw.
  • A rare look inside Alienware’s manufacturing facility – wait until you see these pictures!
  • Ever wonder if Alienware is reading your posts? The answer may surprise you…

A team of NBF staff recently took a trip to Alienware’s headquarters in Miami, Florida. We have been excited for weeks about this trip, our interviews with the Alienware executives, and the chance for the NotebookForum.com crew to get together. (We are a virtual company.) On all fronts, we were blown away.


We arrived at Alienware’s headquarters in mid-afternoon on Wednesday. It is a sprawling white building adorned with giant Alienware banners. Above the front door was a huge brushed-metal sign with the very recognizable alien head. Once inside, we were greeted warmly by the receptionist, Nicole Aguilar. She called our host, Kathryn Diana, a Public Relations Specialist for Alienware, and we had a seat in the lobby to wait. All around us were placards, awards, and medals that Alienware has won over the years, and the walls were filled with framed magazine reviews and other accolades – they certainly have plenty to be proud of!


In just a few minutes Kathryn arrived to greet us. Her bright face and huge smile were our first taste of what was to come from the people at Alienware. She immediately put us at ease. This place is far from corporate – there wasn’t a suit in sight. Kathryn had on jeans – in line with the casual policy at Alienware. While casual, there was never a sense that they didn’t take themselves at least just a little bit seriously…

We headed upstairs to a conference room, where we were pleased to see a few laptops and a beautiful green desktop tower staring back at us from the large conference table. What a great way to start our day! We sat down, Kathryn brought us some water, and we gathered our notes for the interview that was about to happen.

First in was Bryan de Zayas – the Segment Marketing Manager for Alienware (which means that he probably dreams about the specs of these laptops he knows them so well). He has the coolest hair we have ever seen! He knows Alienware laptops like the back of his hand, and he was itching to talk about them. As we were chatting, the other three executives arrived in the room: Alex Aguila (President/COO), Frank Azor (Senior VP/GM Alienware Worldwide Product Group), and Arthur R. Lewis, Jr. (Executive Vice President). Let the fun begin!



We had spent a great deal of time brainstorming about this interview before our visit. We knew our time with these guys would be limited due to their busy schedules, and we wanted to make sure that we learned some things that you can’t just Google to find out. We didn’t realize that we would have almost an hour with Alex, and then even longer with Frank, Arthur and Bryan. They far exceeded our expectations – not only did they spend a lot of time with us, but they turned out to be incredibly down to earth people who obviously love their jobs and they were enthusiastic about sharing their company with us. That feeling is not something you can reproduce on a dime – it’s just who these people are.

We started our interview with a question about the Alienware brand: Could you tell us a little bit about how you created a brand with such a cult following?

(Alex) I remember the first time Nelson told me, “Hey, I want to start a company called Alienware.” We hadn’t talked for six months or something. I was like, “Alienware?” He said, “Yeah, aliens and hardware.” I thought, “Man, you can do a lot with that name.”

Was it a conscious branding effort? No, absolutely not. We are basically two high school grads, we liked science fiction and it was just sounded like a cool thing to do. However, now when we look back, the alien head is a pretty iconic thing. And reviewers have such a great time with the name. “Get abducted by Alienware…”

But, if you notice, we’ve never made it funny. We don’t take ourselves really seriously, but we don’t make it funny either. We take the name seriously, and we have fun with it, but we never make fun of it. No little green guys here.

Our second question came from Craig: Now that you have the brand equity and recognition among gamers, what’s the plan going forward to spur further growth from this point? What are some of the initiatives to find that next customer, that next generation of people coming up who may or may not know that the brand is?

(Alex) We’ll all probably have a different answer for this, but we’ll all end up in the same place.

You know with the Dell deal, one of the reasons for that was that it would increase our ability to reach out to customers that we had never reached out to before. We now have the opportunity, with Dell’s experience and Dell’s help (that’s very operational in nature) in getting the brand out to places that it’s never been before. One of the natural areas of growth is simply global expansion.

We right now have a small foothold in Europe, and we have done well in Australia, but we have a tremendous opportunity to reach out to gamers who really have never been exposed to our brand or our type of product.

(Frank) For us [in product development], we are going to continue to push the limits of design and performance and innovative features; and as we continue to push those limits, we are going to be solving problems that individuals are running into. And as we solve more and more of those problems, our products are going to appeal to more and more people.

At the same time, the acquisition by Dell opened up our brand to a lot more people, so we have already had a lot of new customers coming to us that were never familiar with the brand before.

(Arthur) Also, going back to your initial question about branding, I think that Alex and Nelson really created a market. Remember, back then [in 1996] boxes were very beige and very standard. They were a couple of guys who didn’t have much money, so they had to find ways to be innovative. So they started playing around with colors and designs. Eventually, companies like Alienware started pushing the NVIDIAs and the Intels, so without us what you have is stagnation. Now we’re pushing two graphics cards in a notebook, multiple hard drives, RAID 0 or RAID 1 in a notebook and more. We are pushing performance. We stay on the cutting edge, and stay out of the commodity war where companies like HP and Dell compete. Dell comes in and asks about our product lifecycle, and we say 6-9 months and that’s ridiculous to them. Their lifecycles are 2-3 years. We are going to keep doing that. We have to keep innovating. Europe and Asia are big for us. We are now sharing our brand that we have built here with the rest of the world.


That got us curious about gamers around the globe. Are there any major differences in the Alienware products that you distribute in the global market to accommodate different tastes or needs?

(Frank) Yes, there are differences in colors – some colors are more popular in different places. There are form factor considerations, and customer service, of course. But the core principles of what makes Alienware – performance, innovation and quality – those will be applied to any geography. But yes, maybe our smaller products – like our 15.4” – might sell better in another country, or maybe even a larger laptop; but that’s just differences in cultures and markets and what people are buying in those markets at that time. Our priority is to take the products that made us very successful in the US and carry them into these new geographies.

(Alex) I think what we’ve found out is that a gamer or high performance user is a high performance user wherever they are in the world.

In doing our research, we were surprised to learn about an area of business that we didn’t realize existed in Alienware’s market. Tell us about your success in the government contract and educational contract sector. It seems like there wouldn’t be a large market for expensive, high-end systems in government, but Alienware has had tremendous growth there. Could you tell us a bit about this business?

(Arthur) Sure. As you suggested, it seems a bit counterintuitive. There is a lot of simulation and modeling work that goes on that’s very GPU intensive. When we meet with clients from the Army or Air Force, they like that we have workstations with AMD and Intel, and NVIDIA and ATI – and we have a pretty good brand. They actually come to us. We spend next to nothing on marketing this part of our business, and this group has grown 70%-plus in each of the last three years. We are focusing on the Federal Government, game developers, and higher education. They already know the brand, and it’s a matter of making sure they know that we can service them.

(Alex) These companies have special needs – different departments – that need more than the standard desktops that are found throughout the rest of the organization.

(Arthur) We can really customize systems for our customers. If they come to us and they need something a little bit different from what we offer as standard, we can accommodate them. Because of our size, we can move quickly to make things happen and that adds a lot of value.


Speaking of servicing customers: How has the kiosk at the Dadeland Mall been doing? Any plans to expand to malls across the country?

(Arthur) The kiosk at Dadeland has been doing very well. Initially, we thought that having that direct connection with the consumer (through our website) was very important. We wanted to avoid things having a shelf life – our direct Internet model allows us to get our customers the latest and greatest technology without having to clear out old inventory first. But we also wanted to experiment with some form of retail to try to understand how we can get our direct model to work in retail for the customer who says, “I saw a review of Alienware and it’s really cool, but it’s kind of expensive and I would really like to see and feel the system first.”

We are still trying to find what the right form of retail is. Should we have a kiosk within a bigger store? Or should we carry some sort of inventory that’s preconfigured (which isn’t what our customers want)?

Do we have plans to do something? Yes. Do we know what those are yet? No.



We wanted to shift gears a bit to gaming, as that’s what a lot of our members are interested in. There has been some talk about the death of PC gaming. Do you have any thoughts on that?

(Alex) Oh, I can take this one! I have been a gamer since the 70s. I still have my Atari 2600 and about 500 cartridges. I have every console that’s ever come out. So I have an interesting console/PC perspective.

First, let me tell you a story from last week. My son, who is 8, is also a gamer. He has a Nintendo GameCube – I love that thing, great titles, and great game play. He also has a Wii, but he hasn’t really touched that yet. So he sees me playing Battlefield, and he asks if he can play. A week later, he has like 3000 points, and that’s all he wants to play… The form factor itself lends itself to community feel when you play a MMORPG, or when you play a game with a persistent game universe like BF 2142.

What happens is when you see all these PC game sales reported, you know what’s not being reported is subscriptions. So take WoW, with 7 million copies sold. How much money are they generating each month at $15 a pop? So if you take all the MMORPGs – and especially the stuff that’s coming out – that’s not going away any time soon.

PCs have a huge built-in base. It’s part of our lifestyle. You do Internet. You do work. Everyone has to have a PC. I think they are complimentary – I have both. I play consoles when I want to, and my PC when I want to. I really feel that if you look at the titles – especially with Vista and DX 10 coming out – PC gaming is going to be amazing. Better than ever. If you look at the list of MMORPGs coming out, it’s going to amazing.

I played a lot of Star Wars Galaxy, and there was a really great community there. We stopped playing a year ago because we got mad at Sony, but we are still talking to each other. We created our own forum and we are still friends. That’s always going to lend itself to your personal computer with the keyboard and mouse. Even kids these days will gravitate towards PCs – who wants to talk to their friends sitting on the floor in the living room when their mom is walking by?

The death of PC gaming is really exaggerated. I heard that in 1998. We hear that every time a new console comes out. They are a legitimate competition angle, but nobody is going to abandon the PC. But at the same time, there is an effect.

(Frank) From a product perspective, a console is outdated as soon as it comes out. At the same time, PCs are improving by leaps and bounds. With DX 10 coming, consoles are not going to be able to compete. They are going to have a hard time competing with the shadows and clouds and all of the special effects.


So you guys feel that
DirectX 10 is a really big deal?

(Frank) It’s just an example of how the PC platform continues to evolve and how the games will continue to take advantage of new technology. The consoles are stuck. If you are a game developer today, you are limited. Should I develop a new game now, or wait for the new console? At least with PCs, there is some amount of predictability on how much better performance will be in 1 or 2 years.

(Alex) And there would have to be a psychological shift for a gamer – I am going to talk and type in front of my console? I have a PC for that. A controller is a controller – it hasn’t changed much since Atari. The form factor doesn’t lend itself yet to the depth that PC gaming has.

Yet. (Shaun@NBF)

(Alex) Yeah, not yet. And there are a lot of sharks in the water there. Nintendo is coming back up now – big time. Microsoft and Sony are battling it out. And the developers – they aren’t all pleased with the situation. You have a lot of developers would love to develop PC games in the open architecture.

Along those lines, what is Alienware doing to work with game developers? There must be a lot that goes on behind the scenes. “Hey, I want to build a game to do this. Can your systems run this?”

(Alex) Some of the things you see on the surface – we do a lot of co-promotional stuff. We are kind of customers as well. We get excited about a game like anyone else. We are in the Battlefield manual, actually. We say, “Hey, that’s a really cool game – can we be a part of something?” And they also develop games on our systems.

(Frank) Gaming is just a part of how we test our hardware. It’s how we validate our hardware. In some cases we get pre-builds if they want to be sure their games are compatible with our platform. We use the same burn-in programs that other companies do, but 80% of our time is spent running WoW or another game.

One of my main problems that pops up every quarter or so is that I catch guys playing games too often in the lab. Gamers know that when you sample something - a new game especially – you get addicted. I have to go into the lab every now and again and say, “Ok, guys – no more WoW for a while!



By all accounts, competitive gaming is booming all around the world. What is Alienware doing to further the sport of professional gaming?


(Kathryn) We sponsor local events all around the country. We could sponsor individual players, but we would rather focus our resources on events and send them lots of swag.

(Alex) As a gamer, I find the idea of a cyber-athlete to be really cool. I do. I mean, look at Asia – they are rock stars over there! Dating celebrities, making big salaries. It’s really neat.

(Frank) We also created a site called Come Out and Play where gamers come together, create profiles, talk about what they are playing, and view game videos – all free. This is all unique premium content. It’s still in its infancy, and we are going to be building on it. Right now, we are getting feedback from our customers to find out what they want to see there. We also host game servers and pay for the bandwidth so customers can play for free.


Are there any plans for a juiced-up 14-inch laptop in the line-up?


(Frank) Now, that’s a good idea… (laughter) That’s all I can say. Let me ask you – Would you be interested in such a product? (They are listening, guys…)

How does Alienware connect with customers? Monitoring Internet forums? Surveys? Focus groups?

(Frank) All of the above. We read your forum a LOT. We do internal focus groups, we do surveys – we do it all. It makes our job much easier when our customers are also our employees.


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Old 03-05-2007, 07:32 AM   #2
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Old 03-05-2007, 07:32 AM   #3
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Old 03-05-2007, 08:58 AM   #4
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Old 03-05-2007, 09:17 AM   #5
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Nice article, thanks a lot.

I can only assume that one of the 5790's in the burn in testing image is one of mine.
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Old 03-05-2007, 09:18 AM   #6
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Refresh, and you should see a link to view it.

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Old 03-05-2007, 09:19 AM   #7
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I can only assume that one of the 5790's in the burn in testing image is one of mine.
That would be pretty cool! We had to edit out a bunch of order numbers, or maybe you would have seen it there.

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Old 03-05-2007, 09:25 AM   #8
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Originally Posted by Laura@NBF
Refresh, and you should see a link to view it.

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Got it, thanks Laura.
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Old 03-05-2007, 09:43 AM   #9
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chode messiah is strong with the force which can be released with total devastation at the pull of a finger. Admins are watching closely.chode messiah is strong with the force which can be released with total devastation at the pull of a finger. Admins are watching closely.chode messiah is strong with the force which can be released with total devastation at the pull of a finger. Admins are watching closely.chode messiah is strong with the force which can be released with total devastation at the pull of a finger. Admins are watching closely.
That was a great read. Alienware FTW.
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Old 03-05-2007, 10:43 AM   #10
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Ah... I was hoping for a special coupon code for NBF users
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Old 03-05-2007, 10:50 AM   #11
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FREAKING AMAZING TO SAY THE LEAST WOW SUCH BEAUTIFUL COMPUTERS awesome!
I want an alienware so bad!
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Old 03-05-2007, 10:51 AM   #12
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Ah... I was hoping for a special coupon code for NBF users
Be patient. We are working on a lot of cool things for you guys.

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Old 03-05-2007, 11:19 AM   #13
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Awesome read! I'm even more impressed with Alienware than I was before!...now to just be able to afford one
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Old 03-05-2007, 11:44 AM   #14
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What happened to Nelson?
While Im sure there was a reasonable explanation for the total omission of his presence during this process, it was not mentioned at all? (Not to say, who did show up wasn't still above and beyond!) Just thought with the level of access they did provide that he would have stopped in for a minute to glad-hand or the like, and since this wasnt the case was there some reason for it.....

Overall nice piece, you didnt throw any curve balls though? Would have been interested in what they expect next aside from just "bigger and faster".
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Old 03-05-2007, 11:56 AM   #15
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What happened to Nelson?
While Im sure there was a reasonable explanation for the total omission of his presence during this process, it was not mentioned at all? (Not to say, who did show up wasn't still above and beyond!) Just thought with the level of access they did provide that he would have stopped in for a minute to glad-hand or the like, and since this wasnt the case was there some reason for it.....

Overall nice piece, you didnt throw any curve balls though? Would have been interested in what they expect next aside from just "bigger and faster".
Nelson was not there due to last minute conflicts. He wanted to be there very much, but given his position, his schedule changes very quickly. Alex is his right-hand-man and co-founder, and Alienware has offered a follow up interview with Nelson. They were incredibly generous with the executives' time.

As for curve balls... of course we did, but they simply can't say anything that they are working on that isn't public knowledge. That wouldn't be good for their business! I you read closely, they do hint at a few things...

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