AUSTIN, Texas — Dell Computer Corp. chief executive Michael Dell told analysts Wednesday that the company that made its fortune selling personal computers is now focusing on Internet-related services and equipment.
The Round Rock, Texas-based computer maker has stepped up efforts to provide support services, expand wireless products and invest in startup companies, Dell said.
"This entire Internet revolution is fueling lots of changes, particularly in the consumer market," Dell said on the eve of the company's semi-annual analyst meeting in New York.
The nation's leading personal computer seller is not abandoning the direct sales model that made it famous but is building from the successful formula that has allowed it to sell $40 million a day through its Web site, Dell said.
Dell's vice chairman, Kevin Rollins, said the company has developed a strategy that focuses on the back-end arena of dot-coms, Internet service providers and established companies that are increasing their e-commerce presence.
The announcement is not a surprise because Dell has slowly been branching from selling PCs and breaking into the service arena, said Barry Jaruzelski, an analyst with Booz, Allen & Hamilton in New York.
Dell must diversify if it is to maintain its revenue growth, he added.
"They have been able to row faster and harder than anybody in the PC arena, but there's only so far you can push that," Jaruzelski said.
"To me, they're saying, 'We've got a huge war chest but you can't just rely on the established model. We're sort of a victim of our own success,"' Jaruzelski said.
Dell, which has reaped $25.3 billion in revenue over the past year — mostly from PC sales — has already begun putting its strategy in play.
Last week, Dell announced that it would broaden its year-old Dell Ventures to include equity investments and incubation services for private startup companies.
Dell appointed its chief financial officer, Thomas Meredith, as managing director of Dell Ventures, which has to date invested more than $700 million into 95 startups.
James Schneider, Dell's senior vice president for finance, will succeed Meredith as chief financial officer.
Since its formation in April 1999, a dozen of the Dell-supported companies have gone public, earning Dell about $2 billion on paper.
Dell Ventures also will focus on data transfer and storage, Internet services, business-to-business and business-to-consumer online commerce, and Internet access and content, Rollins said.
The company also released the PowerApp server, targeting the Web hosting and traffic management needs of service providers and other businesses with Internet infrastructure needs.
In February, the company launched a Web-hosting service. Earlier that month, Dell launched its Internet Partner Division, promising to provide companies with servers, storage and other services.