August 2007 - Posts

  • Dell Q2 Preliminary Results Released

    Thu. Aug. 30, 2007
    by Lionel Menchaca, Chief Blogger

    Folks who read Direct2Dell pretty regularly know I am not an Investor Relations person. That means I will not be commenting on financial results. I just wanted to make this information available to people who are expecting it.

    --Lionel

    DELL REPORTS Q2 PRELIMINARY REVENUE OF $14.8 BILLION; PRELIMINARY EARNINGS PER SHARE OF $0.32

    Quarter Highlighted by Improved Growth and Profitability Across All Regions and Strength in Enterprise Products       

    ROUND ROCK, Texas, Aug. 30, 2007—Dell today reported preliminary results for its second quarter of fiscal year 2008, with revenue of $14.8 billion, operating income of $896 million and earnings per share of $0.32.  Strength in enterprise products and services, improved average selling prices and favorable component costs drove profitability in the quarter.  Cash and marketable securities were $13.8 billion at the end of the quarter.   

    "We continue to invest in company initiatives that align our products and services around customers' needs in order to drive long-term, sustainable performance and extend our position as a trusted technology partner," said Chairman and CEO Michael Dell.  "While our results demonstrate we've made progress against our goals, we are still in the early stages of transforming our company's structure, costs and operations."

    Operating Profit Impacted by Higher Expenses

    Several factors adversely impacted operating expenses in the quarter, including $102 million, or $0.03 per share, in incremental compensation expense related to payments for expired in-the-money stock options; $59 million, or $0.02 per share, in costs associated with the Audit Committee's investigation into certain accounting and financial reporting matters; and higher headcount and associated costs related to investments in sales and customer support. 

    As the company continues to implement its transformation program, the priority is to drive profitable growth while reducing operating expenses as a percentage of revenue.   The company expects to accomplish this by improving front-line productivity, reducing headcount where appropriate and investing in infrastructure and key growth initiatives.  The company is focused on the optimal alignment of resources, coupled with scaling via growth initiatives and cost reduction, and continues to pursue reductions in headcount. 

    Transformation Update

    Several actions during the second quarter reflected Dell's ongoing strategy to simplify IT for its customers by reducing the cost, time and complexity of managing information technology, including:

    • The launch of the VostroTMbrand of notebook and desktop computers, the first product line designed for the unique needs of small businesses, featuring simple-to-use tools that address problems such as data back-up and PC performance and health, and dedicated customer support. Vostro products do not include "trialware" and feature specialized networking support for customers who don't have dedicated IT staffs.
    • The introduction of our new flagship ultra-portable notebook, the XPSTM M1330, our super thin 13.3-inch notebook, featuring cutting-edge design elements and a durable magnesium alloy chassis with brushed aluminum accents. In addition, new Inspiron notebook systems feature mobile broadband, widescreen displays, built-in webcams and eight color choices.
    • Agreements to acquire ASAP Software, a leading software solutions and licensing services provider; privately-held SilverBack Technologies, Inc., a service delivery platform provider for remote monitoring and management of information technology infrastructure such as servers, storage, networks, desktops and notebooks; and Zing Systems Inc., a consumer technology and services company that focuses on always-connected audio and entertainment devices.
    • Announced plans to reach more customers globally via indirect distribution channels through partnerships with Wal-Mart and Sam's Clubs in North and South America, Bic Camera Inc. of Japan and Carphone Warehouse in the United Kingdom.

    Product Performance Driven by Continued Focus on Server and Storage Solutions

    Server revenue in the second quarter was $1.6 billion. For Q2, Dell was again No. 1 in the United States in server units shipped with 32.7 percent share.  Storage revenues were $0.6 billion.  During the quarter, Forrester Consulting1 issued a report that demonstrated how Dell's new IT simplification solutions, which include server consolidation and virtualization solutions, increased the ROI benefits for one of Dell's customers.

    Dell also announced a partnership with Emerson Network Power and its Liebert power and cooling business to help customers lower their datacenter power and cooling requirements by up to 42 percent and increase systems performance by up to 80 percent compared to prior generations of Dell servers. 

    Revenue from mobility products was $3.9 billion while desktop revenue was $5.0 billion.  During the quarter, the company ran a higher-than-normal product backlog, driven by better-than-expected demand for the new Inspiron and XPS color notebooks coupled with supply constraints for several colors, and a tightening in supply of certain flat-panel displays.  The company believes the supply environment will improve in the second half of the year.  Enhanced services revenue was $1.3 billion and software and peripherals revenue was $2.4 billion. 

    Company Outlook

    The company is focused on IT simplification for its customers, including transforming its business to provide better value to customers while expanding its growth opportunities.  These efforts set the stage for a more sustainable balance of liquidity, profitability and growth.  During this period of transformation, operating results will vary as the company focuses on making investments and realigning the business.  Near-term results could be adversely impacted by a slower decline in component costs in the second half of the year.  The company does not expect to resume its share repurchase program until after it has filed its fiscal year 2007 Form 10-K, which is expected to occur by the first week of November.

    Preliminary Results Subject to Change

    As previously announced on Aug. 16, 2007, Dell will restate its previously issued financial statements for fiscal 2003, 2004, 2005 and 2006 (including the interim periods within those years), and the first quarter of fiscal 2007.  In addition, the company has not filed its Forms 10-Q for the second and third quarters of fiscal 2007 and the first quarter of fiscal 2008 or its Form 10-K for fiscal 2007.  Consequently, all financial results described in this press release, as well as the previously announced financial results for the second, third and fourth quarters of fiscal 2007 and first quarter of 2008, should be considered preliminary, and are subject to change to reflect any necessary corrections or adjustments, or changes in accounting estimates, that are identified prior to the time the company completes the restatement and these filings.   

    NASDAQ Listing Update

                As previously announced, on Aug. 17, 2007, the Board of Directors of The NASDAQ Stock Market issued its decision to give the company until Nov. 12, 2007 to file its past due periodic reports and regain compliance with NASDAQ's listing requirements.  Dell previously announced that it expects to file its past due periodic reports by the first week of November.

    Annual Meeting and Analyst Meeting Update

                The company's annual meeting of shareholders is being planned for Dec. 4, 2007.  The company plans to hold a strategy call on Nov. 29, 2007 when it releases fiscal third quarter 2008 earnings.  The company also plans to hold a full analyst meeting on April 2 and 3, 2008, in Round Rock, Texas.

    About Dell

    Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell is a leading global systems and services company and No. 34 on the Fortune 500. For more information, visit http://www.dell.com/, or to communicate directly with Dell via a variety of online channels, go to www.dell.com/conversations. To get Dell news direct, visit www.dell.com/RSS.

    1The Total Economic ImpactTM Of Dell's Server Consolidation And Virtualization Solutions Single Company Analysis A Commissioned Study Conducted by Forrester Consulting on Behalf of Dell. The complete report may be accessed at www.dell.com/research.

    Special Note

    Statements in this press release that relate to future results and events (including statements about our preliminary and expected future financial and operating performance) are forward-looking statements based on our current expectations. Actual results may differ materially from the forward-looking statements because of a number of risks and uncertainties, including: the risk that additional information may arise during the completion of our work on the restatement, our independent auditor's review of the investigation and completion of its audit work, the Audit Committee's final review of the investigation and the restated financial statements, and as a result of other subsequent events; any additional issues or matters arising from the ongoing SEC investigation; our ability to successfully remediate identified internal control deficiencies; our ability to meet NASDAQ requirements for continued listing as a result of our past due periodic report filings; general economic, business and industry conditions; our ability to maintain a cost advantage over our competitors; local economic and labor conditions, political instability, unexpected regulatory changes, trade protection measures, tax laws, copyright levies and fluctuations in foreign currency exchange rates; our ability to accurately predict product, customer and geographic sales mix and seasonal sales trends; information technology and manufacturing infrastructure failures; our ability to effectively manage periodic product transitions; our reliance on third-party suppliers for quality product components, including reliance on several single-source or limited-source suppliers; our ability to access the capital markets; litigation and governmental investigations or proceedings arising out of or related to accounting and financial reporting matters; our acquisition of other companies; our ability to properly manage the distribution of our products and services; effective hedging of our exposure to fluctuations in foreign currency exchange rates and interest rates; obtaining licenses to intellectual property developed by others on commercially reasonable and competitive terms; our ability to attract, retain and motivate key personnel; loss of government contracts; expiration of tax holidays or favorable tax rate structures; changing environmental laws; and the effect of armed hostilities, terrorism, natural disasters and public health issues. Additional discussion of factors affecting Dell's business and prospects is contained in Dell's periodic filings with the Securities and Exchange Commission.

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  • XPS 700 Motherboard Exchange: Order Confirmations

    Mon. Aug. 27, 2007
    by Lionel Menchaca, Chief Blogger

    I've been getting comments from several customers like who have submitted their orders and have not received a response. Wanted to clarify how the process works, and the easiest way to illustrate it is to break it down into two main groups: Customers who purchase something, and customers who don't. Basically, if no purchase is involved, you will receive an e-mail notification when your order is processed. If you are purchasing something, Dell will be contacting you directly to process work out payment details to process your order.

    In all cases, please allow up to 10 business days (two weeks) for us to process your order and get back to you.

    No purchase: you will receive e-mail order confirmations when your order is processed.

    • XPS 700 customers who opt for the hardware kit at no charge
    • XPS 700 customers who choose on-site installation service at no charge

     Orders with payment: you will receive order details from the Dell representative who contacts you to process you order.

    • XPS 710 customers who purchase a hardware kit
    • XPS 710 customers who purchase the on-site install
    • XPS 700 customers who purchase the discounted quad-core QX6700 processor 
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  • Inspiron Notebook Product Delays

    Fri. Aug. 24, 2007
    by Lionel Menchaca, Chief Blogger

    Thanks to all of our customers who  continue to wait for your orders despite the delays. We apologize for the frustration that they have caused all of you. I know that many of you have seen the blog posts about the XPS M1330 delays, but many customers are asking for details behind the Inspiron delays.  I wanted to spend a few minutes to try to address some of the fundamental issues we're dealing with.

    Regardless of what product we're talking about, generally speaking there are two things that dictate when we will ship your order: 1) the order date and 2) parts availability. There are other variables that factor into this, but in general, we expect to ship products in the order they were received when we have the components to build your system.

    Speaking of components, many of you have asked which ones are delaying your orders. The reason that's not a simple question to answer is that the supply picture changes frequently. Once we are aware that  a component is in short supply and will add time to your estimated ship date, we try to indicate that on the configurator in Dell.com to give you an indication of further potential delays.  Here's an example screenshot here:


    To date, color options are the main source of delay on Inspiron notebooks. Basic colors like black are easier to produce. Premium colors and finishes like we use on the Inspiron models introduce complexity into the process, and that's holding things up. Just as Alex mentioned in his post about colors on the M1330, producing smaller quantities is not the issue—it's mainly an issue of scale. We'll continue to work directly with suppliers to ultimately increase our production on color notebooks. Besides scale, we are also focused on maintaining the levels of quality we established when we designed these notebooks. In other words, we're not going to relax our quality standards to ship more products.

    While premium colors are the main reason for delay of our Inspiron notebooks, displays are a secondary reason—some screen sizes are in short supply.

    As long as we have lots of customers waiting for systems like we do now, we have some tough work ahead of us. I can assure you that people at all levels in many departments across the company are working around the clock to resolve all the issues preventing us from shipping your systems. Beyond that, we have added dedicated sales and support resources in the United States and around the world specifically to address the customer experience issues that these delays cause. We also understand that shipping your system is key, and we'll continue to work to do that.

    Thanks again to all of you who continue to wait for your orders. We appreciate your patience and your business.

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  • Dell's Solution Provider Direct Update

    Wed. Aug. 22, 2007
    by Chris Bates, Director, Americas Channel Group

    Back in May, Michael appeared on the cover of CRN and announced that Dell is expanding its channel strategy and will launch an "authorized partner" program and deal registration by the end of this year. Since then, we've been having lots of conversations with our current channel partners like Eze Castle Integration. Some customers have questioned our efforts, but I assure you Dell's commitment to solution providers is real. Moving forward, I and others will blog about developments in our strategy to make the long-term vision more clear.

    Yesterday, members of our Solution Provider Direct team updated hundreds of channel executives and media at the annual CMP XChange event in Orlando on progress Dell is making with our channel initiatives. 

     At XChange, we also circulated a survey to get feedback on authorized partner program elements that will most influence solution providers to do business with Dell. We'd love your feedback, too. Later this week, we'll add a link to the survey when we get it set up.

    Update 8/23—Please click on this link to get to the survey.

    We still have a ways to go and won't be ready to announce the details of authorized partner until later this year, but here are some points I made during the XChange conference:

    • We have new VPs in Europe and the Americas (which encompasses the United States, Canada and Latin America). Josh Claman is the VP of channels for EMEA, and Greg Davis now serves as VP for our channel business in the Americas.
    • We've recently hired IPED-a member of the CMP family-to help us flesh out details of our initiatives. Their channel expertise and credibility is extremely valuable to us, and we are excited about the partnership.
    • We acquired SilverBack Technologies. Dan Phillips, SilverBack CEO and now a Dell director, and his team will be instrumental in helping us build a partner network and program we think will be very compelling.
    • One significant component of authorized partner that is fairly far along in its development is Deal Registration. Some solution providers have concerns about Dell's direct hardware business competing with their sale or resale of hardware to customers. Deal Registration will reduce this conflict and hopefully increase solution providers' trust in Dell.
    • You will see a tiered program from us. Dell is a performance-based culture, and we want to set up our partner program in much the same way.
    • Finally, we are upping our marketing efforts to the channel with regional Solution Provider Direct customer briefings, investments in events like XChange, and a dedicated marketing team.

    Update 8/23: I'll add the link to the survey to this post when it's live. Appreciate your feedback. Here's the link for the survey.

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  • XPS 700 Motherboard Exchange Program Update

    Mon. Aug. 20, 2007
    by Lionel Menchaca, Chief Blogger

    Thanks to all of you for your strong support of the XPS 700 Motherboard Exchange Program. Due to overwhelming global demand of the program, we need to order more components for hardware kits to support the demand.

    What this means is that we are able to fulfill all orders up through Thursday, August 16 within the original estimated shipping times. Orders submitted after that date will take us about six weeks to fulfill. Between now and then, we will do everything we can to shorten that timeframe, but that's the best estimate I can provide at this time. My apologies to customers who will have to wait a bit longer for their hardware kits.

    As a reminder, the link for the XPS 700 Exchange Program is:

    www.XPSUpgradeProgramDell.com

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  • U.S. Mail Order Rule & My Order Status

    Fri. Aug. 17, 2007
    by Lionel Menchaca, Chief Blogger

    Understandably, I'm getting lots of comments and direct e-mails related to delays of XPS M1330 notebooks, Inspiron and Latitude notebooks, and some of our Vostro products.  I want to apologize to all of you for the frustration these delays are causing. I also want to assure you that we're doing everything we can to ship your orders. 

    The My Order Status page shows your original (or adjusted if the date has slipped) estimated ship date of your order. It also shows factory progress after the build has started. The build status will not change if we are still waiting for parts to complete your order. 

    Some of you have reported that your order was canceled by Dell. For customers in the United States, I wanted to share some details that may apply to many of you. The Federal Trade Commission (FTC) is an agency of the United States government that focuses on consumer protection. For more background on the FTC, take a look at this link from their website, or the Wikipedia entry here.

    One of the laws that the FTC enforces is the Mail Order Rule, which requires us to obtain your permission to proceed with processing your order when it has been delayed more than once. If we do not obtain your permission to proceed, we must cancel the order to be in compliance with the law. Therefore, it is critical we receive your permission to continue processing your order or the Federal Trade Commission requires us to cancel it. If your order is canceled, you will lose your place in line.

    What can you do if you want to continue your order? If you are a customer in the United States who has already received notice that your original ship date has slipped and that we require your consent to continue with your order, please send an e-mail to US_Dell_Notify@dell.com or call 1-877-868-3355. Here's the information we need:

    • Your first & last name
    • Your order number
    • A message that you are okay with the delay and revised estimated ship date provided in our last notice to you, and want to keep your order in place

    Again, this only applies to you if you've receive an "Order Delayed" message from Dell that indicates your consent is required to avoid cancellation.

    I know that many of you have waited weeks for your orders, and the last thing I'd want to happen is that your order gets canceled unintentionally. Since the Mail Order Rule only applies to customers in the United States, processes outside the United States may differ from what's described here.

    Please continue to check your My Order Status page, as Dell is working to meet our estimated shipment commitments.

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  • LinuxWorld San Francisco 2007 Wrap-Up

    Wed. Aug. 15, 2007
    by Matt Domsch, Linux Technology Strategist
    Well, LinuxWorld is over for another year.  It was a busy week, with lots of announcements, great press coverage of our CTO's keynote, and a narrow defeat of your heroes in the Golden Penguin Bowl.

    First off, we've got videos—lots of videos. We'll see if my colleagues were right when they said I have a face made for radio. To test that theory, I had the chance to shoot some vlogs from the LinuxWorld show floor.  In these interviews, you get to see the Dell booth, and meet the people behind Dell's activities, as well as meet key business partners from Red Hat, Canonical, Novell, and more. I couldn't embed all the videos in the post, but I've supplied download links for all in various formats just below the pictures.

    We start with an introduction to the show by yours truly, and an interview with Tui Leauanae, Dell's Linux product marketing manager and show coordinator.

    OGG, WMV, MP4, Flash

    We made two Desktop Linux announcements at the show.  First, based on your feedback on Direct2Dell and IdeaStorm, Dell is now selling select Desktop and Notebook systems with Ubuntu Linux factory-installed in the UK, France, and Germany.  I talked with Daniel Judd, desktop/notebook product marketing manager at Dell and Mark Murphy, alliance partner manager at Canonical about this new development.  Second, Dell has been working with Novell/SuSE to factory install SuSE Linux Enterprise Desktop on our corporate desktop and notebook systems in China.  I talked with Jeff Biehle, a Novell alliance partner manager, about what this means for our customers in China, and, due to the increased testing and certification, the implications for customers worldwide.

    OGG, WMV, MP4, Flash

    Peter Lillian, Dell's product marketing manager for High Performance Compute Clusters, talked with me about Dell's entries on the Top 500 Supercomputer list, and the role of Linux in  the HPCC market.

    OGG, WMV, MP4, Flash

    Mike Evans, VP of Corporate Development at Red Hat, discussed our announcement that Dell will offer several JBoss solution suites, for users running either Windows or Linux.

    OGG, WMV, MP4, Flash


    Fellow Fedora Project Board member Karsten Wade, and Fedora engineer Jack Aboutboul were manning the Fedora booth, and took time to tell me about the Fedora Translations effort, and the Creative Commons Live Content CD they were giving away, built entirely with Open Source tools included in Fedora 7.

     

    OGG, WMV, MP4, Flash

    It was good to see lots of coverage of Dr. Kevin Kettler's keynote on Virtualization, with articles by Ars Technica, IDG, Information Week, The Inquirer, Tech Republic, ZDNet, and many more.  Lots of attention around the idea of ubiquitous embedded virtualization capabilities to drive up adoption of the technologies and get the benefits into the hands of end users more quickly. Video should be posted on the Linuxworld.com shortly. I'll update this post with a link to Kevin's keynote when it's available and we welcome your input on this hot topic as we look to keep the conversation going and deliver solutions that simplify the way you deploy virtualization in your environments.

    Dell engineers presented two conference sessions at LinuxWorld, and two at the new Next Generation Data Center conference in the same space.  These link to the slides:

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  • XPS 700 Motherboard Exchange Program is Here

    Mon. Aug. 13, 2007
    by Lionel Menchaca, Chief Blogger

    Sorry for the delay. I know this date has been a long time coming for many of you. We're finally here. If you are an XPS 700 or XPS 710 customer interested in this program, here's the URL you've been waiting for:

    www.XPSUpgradeProgramDell.com

    Terms and conditions may vary by region. If you are a customer in Asia Pacific, Japan or Latin America, you will informed of these differences at time of order.

    I'm still working to address some of the questions I've been receiving from you. Will provide an update to this post as soon as I can.

    To all of you who have waited for this program, thanks for your continued support.

    Update 8/14—3:30CDT: I need to clarify the eligibility cutoff date for XPS 700 and 710 customers. This program applies to any XPS 700 or 710 customers who purchased their systems on our before June 30, 2007. The XPS team decided to extend that date from the original deadline that I had communicated in this blog post. My apologies for not correcting the cutoff date with the new June 30, 2007 date.

    Several XPS 710 customers like theEconomist and Kurtis and gEORGE have asked for pricing details. Pricing will vary by region, but pricing for the hardware kit will not exceed $250 USD + tax and shipping, and on-site service installation will not exceed $150 USD. The on-site service installation includes installation of the motherboard and necessary parts in the hardware kit, plus the processor, if ordered.  In some countries outside of the US and Europe, customers will be required to purchase the on-site service and will not be permitted to perform the upgrade themselves.

    Folks like Pointguard1122, Gbakmars (in an e-mail to me) and CHSIsupplier have asked when we will ship motherboards. Ultimately, it may vary by region, but it should be about three weeks from the time you submit your order to when you will have the hardware kit in your hands. For customers who are having the hardware kit installed by Dell's on-site installation service, installation dates may Add to that 3 week timeline.

    Readers like Anubis, CoMeader and Pointguard1122 asked if customers can keep their original motherboards. If you are an XPS 710 customer who is purchasing the XPS 720 motherboard, you do not have to return your motherboard. XPS 700 customers are asked to return their original board, Dell will provide a return airbill and packing materials for your original motherboard.

    Other folks like Rraallpphh13  and others have asked about limited warranties. First off, all XPS 700 customers who purchased their systems before June 30, 2007 are eligible for this program, until it expires on October 13, 2007-even if their system is no longer covered by the Dell limited warranty. All XPS 710 customers are eligible to purchase the hardware kit or the hardware kit with on-site service until the program expires on October 13, 2007. The XPS hardware kit is considered add-on new hardware under Dell's limited warranty and that means the warranty duration is 1 year or 90 days (depending on the region) or the remaining balance of the system limited warranty, whichever is greater. The terms of this limited warranty vary by region. Details can be found on your regional support.dell.com website, under the Warranty Information section.

    While I'm on the subject of limited warranties, customers like Will and scarmine have asked if doing the install themselves will void the Dell limited warranty. Doing the install yourself will not void your Dell limited warranty. If you feel comfortable doing the motherboard upgrade yourself, feel free to. Jon went a step further and asked if he could still receive on-site installation from a Dell technician if he starts the upgrade process, but can't finish it. Yes, anyone who starts the upgrade process can contact XPS Technical Support (see next paragraph) at any time during the self-install upgrade process. Beyond that, customers who wish to set up on-site installation afterwards can send an e-mail to the XPS Upgrade  Program Mailbox.

    To contact XPS Technical Support, customers in the United States can call 1-800-232-8544. Customers outside the United States can do the following to find the appropriate phone number:

    • Go to support.dell.com
    • Choose Contact Us
    • Choose Technical Support
    • Choose Call Technical Support
    • Look for the listing for XPS Support

    Other customers like Roberth Andersson asked if things like the H2C liquid cooling hardware,1 kilowatt power supply, or upgraded video cards could be purchased to be part of the on-site installation. The on-site installation only covers the installation of parts from the hardware kit, and QX6700 processors purchased by XPS 700 customers as part of the exchange program. The QX6700 processors are available to XPS 700 customers at a price equal to 25% off the current Electronics & Accessories price for that processor.

    Direct2Dell readers like Deadites have asked how the system will show on support.dell.com. After the upgrade, it will still show up as an XPS 700 when you log onto the site. However, we have taken steps to reflect the upgrade on Dell internal tools to show that your system has been upgraded as part of the XPS 700 Motherboard Exchange Program.

    Customers like Dave F, Rraallpphh13 and Xecuter2 have asked what processors will be supported. One thing I should have made clear: the XPS 720 board is backward-compatible: If you have a Pentium D or an E6300 or E6400 processor, those will work fine in your new board.  I listed current processors in this post, and also mentioned that we are still looking into the possibility of supporting the QX6850. Related to that, some are asking about 1333MHz front side bus support. Our XPS development team is working on an XPS 720 BIOS update that we believe will support processors that operate at the faster front side bus speed. It's too early for me to talk about Penryn support.

    Readers like Kong57, Chris and Xecuter2 all asked me about where to buy the Corsair memory that we sell as an option with XPS 720 systems. Here in the United States, you can purchase it through Dell Electronics & Accessories here. The link is DDR2 800MHz memory that can be overclocked to 1066MHz.

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  • XPS 700 Motherboard Exchange: What to Expect

    Sun. Aug. 12, 2007
    by Lionel Menchaca, Chief Blogger

    As most of you know, the XPS 700 Exchange Program is coming tomorrow. Thanks to all of our XPS 700 and 710 customers who have stuck with us through the journey since last year.

     Update, 8/13:  The link for the XPS 700 Exchange Program is now live:

    www.XPSUpgradeProgramDell.com

    Before we launch, wanted to give you an idea of how the program will work. I'm also working on a subsequent blog post to answer some of the common questions I'm getting from comments and direct e-mails from customers. It will be coming soon. One of the most prevalent ones is when these motherboards will ship. The short answer is that it will take about three weeks from the time you submit your order to when you will receive the hardware kit. Processes and timelines may vary by region, but three weeks is a pretty good estimate.

    When the site goes live, I'll include the link in a new post, and will update all XPS 700 Exchange program posts with the link as well. After the site launches, you can go there any time between now and October 13, 2007 to choose the options that you prefer and submit your order.

    Here's a flowchart that outlines the process in more detail. Click on the image below for a larger version.

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  • How to Get Ready for the XPS 700 Exchange Program

    Wed. Aug. 08, 2007
    by Lionel Menchaca, Chief Blogger

    Update, 8/13:  The link for the XPS 700 Exchange Program is now live:

    www.XPSUpgradeProgramDell.com

    We're just a few days away from the XPS 700 Motherboard Exchange program. I've been getting lots of e-mails and comments from XPS 700 and 710 customers. I'm sorry for the delay in getting details out to you. Beyond this blog entry, I'm hoping to have another one that will give you an idea of what to expect before next week. I'll try to answer more questions then.

    If you are planning to do the motherboard installation yourself, I encourage you to download this Upgrading Your Computer Tech Sheet and if you haven't watched it already, and to please view this vlog that walks you through the upgrade process. As you'll see, some are basic things you've probably done before if you've ever swapped out a motherboard. Some are not quite as obvious, but making sure you've done these things will help make the process go more smoothly. I hope this post gives folks an idea of what to do in anticipation of the launch day--August 13 next week.

    Find Your System Documentation:

    The hardware kit will contain a copy of the XPS 720 Owner's Manual. Locate the copy of the XPS 700 Owner's Manual that came with your system. You can either access the HTML version here or download the PDF here (warning: this file is over 20MB).

    Find Your Operating System Media:

    Dell strongly recommends re-installing your operating system. From the comments in Chris M.'s XPS Desktop General Hardware thread, I know some of you are planning to restore an image of your OS. As most of you already know, there's a chance an image restore will not work—or at the very least, may not work perfectly. See the last paragraph in this post for more details.

    To do this, you will need your operating system media that came with your system when you purchased it. If you did not receive an operating system CD or DVD, U.S. customers can visit this link to request backup OS media.

    Find Device Drivers and Additional Software Discs

    As part of the hardware kit, you will receive the Resource CD (also called the XPS 720 Drivers & Utilities disc) that is specific to the XPS 720. It includes all of the drivers to support the motherboard and integrated components. However, since Dell's peripheral offers change over time, drivers and applications for Dell factory-installed eripherals shipped with your original system may not be included on the XPS 720 Resource CD. Because of this, we recommend that you visit support.dell.com to download the latest drivers for peripherals that were factory-installed in your original system.

    Preparing Your Machine (Before the Motherboard Exchange):

    • First step is to back up your personal data. There are several different ways you can go about this, so I won't pretend this is exhaustive. At a high level, most of your personal files are save in the My Documents folder in Windows XP or Vista. If you haven't changed the defaults in Windows XP or Vista, this should capture all Microsoft Office documents, and your digital music, photos and videos. Beyond personal files however, you want to make sure you backup all your e-mail and contacts, and bookmarks for your web browsers. Both XPS and Vista have backup and restore utilities. Here's a link for Windows XP backup utility and here's an XP backup utility-focused StudioDell video. Here's one for Vista users that walks you through using the Backup & Restore Center.
    • Download and flash the BIOS to the latest version, which is version 1.4.1. Although it might seem strange, it helps in the transition.
    • Remove any external USB devices besides the key, mouse and monitor.
    • If you bought any third-party peripherals, please remove them. Dell recommends that you focus on setting up all the hardware you purchase from Dell before installing third-party or aftermarket peripherals you purchased. For example, if you purchased EPP memory separately after you purchased your system, please remove it, and install the memory that you purchased in your original system (if you still have it).

    After the Motherboard Exchange:

    • On the initial boot, your system may boot in Manufacturing Mode. If so, the system will attempt to boot to PXE. Once this is complete, you be prompted to exit Manufacturing Mode by pressing ALT+F. (This is expected behavior and does not indicate a HW failure.)
    • If you had a RAID configuration, you'll need to re-enable RAID in the BIOS. To do so, enter the System Setup by pressing F2 when prompted during boot. Scroll to the Drives section and press enter. Highlight the appropriate drive option and set the value to RAID ON. Repeat these steps for each drive in the array. Press ESC until you are prompted to Save the Changes and Exit System Setup.
    • Insert the Operating System media provided with your original system order. On reboot, press F12 when prompted. Choose the option to boot to the optical drive. Dell recommends that you install a clean version of the OS.
    • After completing the install, you may use the Resource CD to install the appropriate XPS 720 drivers and your original recovery media and driver backups to install any peripheral drivers.

    Remember that when you replace your motherboard, it's essentially comparable to getting a brand new system. To ensure full compatibility, Dell recommends that you prepare for a full reinstallation of your operating system. This is the best way to be sure that your upgraded system will perform at peak levels. If you've ever built your own system, or swapped out one motherboard for another, you probably have dealt with this before.

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