DELL Dell Inc. (MM)

Dell Inc.’s (DELL) commitment to developing new technology for the health care vertical is deep-seated. Through technological upgrades in health care services, Dell aims at connecting people/patients with the right technology and processes to support information-driven health care.

The tech giant has recently launched an advanced version of its Mobile Clinical Computing (MCC) solution, which was introduced back in April 2009. MCC makes computing flexible and simplifies access to patient information within a secure environment. The latest version targets hospitals and health care organizations using the MEDITECH Healthcare Information System.

Medical Information Technology Inc., commonly known as MEDITECH, is a Massachusetts-based software and services company selling information systems, which are installed in health care organizations worldwide. The software is designed to store and display administrative and clinical data.

MCC for MEDITECH will provide flexible, virtual and secure desktop infrastructure, facilitating medical sessions as well as shared workstations on the move. For the development of this solution, Dell leveraged VMware Inc.’s (VMW) virtualization and cloud management products such as vSphere and View, as well as software support from other health care solution providers.

According to Gartner, DELL is the leading health care information technology services provider in the world. Therefore, the U.S. government's endeavor to grow information technology infrastructure to support health reform is a big positive for Dell. We believe that DELL, with its strong position, would be able to capitalize on the government’s initiatives.

Apart from health care exposure, we are encouraged by Dell’s efforts to shift its focus from the traditional PC business to the higher-end data storage market or cloud computing. Dell is also investing in high growth countries such as Brazil, Russia, India, and China and recently announced its plan to expand in India.

However, concerns for the company include soft demand from the consumer vertical, a high debt level and stiff competition in the cloud and computing markets.

Currently, Dell has a Zacks #1 Rank, which equates to a short-term Strong Buy recommendation.

 
DELL INC (DELL): Free Stock Analysis Report
 
VMWARE INC-A (VMW): Free Stock Analysis Report
 
Zacks Investment Research