Dell Software: Meeting Expectations Amid Buyout Debate?

Dell Software: Meeting Expectations Amid Buyout Debate?

Dell is killing some niche software products ahead of an Aug. 20 earnings announcement. Are Dell Software revenues living up to expectations amid the private equity buyout debate?

Are Dell Software revenues living up to expectations? The VAR Guy raises that question as Dell battles activist investor Carl Icahn; PC industry sales plummet; and Dell begins to kill niche software products like PacketTrap and FogLight NMS. Hmmm...

Dell is set to announce Q2 2014 earnings on August 20. Predictably, expectations are low for Dell's traditional PC business. But the company has been banking on continued progress in the software market.

Back in July 2012, Dell predicted its software sales would rise to $5 billion by 2016Fast forward to the present and there are signs that Dell is fine-tuning its software business.

One example: According to MSPmentor (our sister site), Dell has stopped developing PacketTrap PSA and PacketTrap RMM -- two platforms that MSPs use to managed internal and external business operations. Dell also is shutting down FogLight NMS, but the company will continue to support existing customers across each of those three platforms.

Overall, the PacketTrap and FogLight NMS shutdowns are not big revenue hits. The VAR Guy suspects PacketTrap generated under $30 million in annual revenues -- but that's just a hunch.

Either way, it's clear that Dell is trying to more tightly focus its software business before announcing earnings on Aug. 20. The VAR Guy wonders: Is Dell getting ready to adjust its own expectations in the software market? We'll get the answer in two weeks.

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