Dell to buy Alienware?

The Dell AMD Saga continues again. The plot this time revolves around the niche market player Alienware. It is a small company which produces very expensive and powerful gaming computers and workstations. The source of the rumour is none other than the main competitor of Alienware, Voodoo PC, which operates in the same niche - from its CEO, Rahul Sood to be more precise.

Now Dell has acquired other companies in the past. I clearly remember that more than a decade ago, as a young company, Dell merged/bought another computer company called Zenon although the world wide web and Dell's own website bears no indication of the process. So even if Dell rarely grows inorganically, it does cherry-picks its acquisitions - although Convergenet was not a remarkable example of lucidity.

Why would Dell buy Alienware and where does AMD fit in? Well that's pretty simple. Dell regards Apple as a growing competitor and one which it simply cannot undercut on pricing. Apple has the WoW factor that Dell doesn't have and that's it. On top of that, Dell need to re-invent itself and grab more headlines, in other words, be more exciting.

That's where Alienware comes in. A cool, energetic, high margin and definitely exciting brand that has won more kudos for reaching high performance than for breaking price floors. That would certainly help Dell in its fight against Apple and would bring in some well needed fresh blood.

As for AMD, well... Alienware uses AMD and it would be the perfect excuse to start using their processors although in smaller quantities but enough to grab headlines and get the buzz rolling. And Rahul is not alone thinking that it might happen