Dell dispenses with hated 'trialware'

Dell dispenses with hated 'trialware'
By Paul Taylor in New York and Kevin Allison in San Francisco
Copyright The Financial Times Limited 2007
Published: July 11 2007 03:00 | Last updated: July 11 2007 03:00


Dell yesterday became the first big computer maker to address customer frustration and anger over "trialware" - the often superfluous and frequently unwanted software that comes pre-installed on most PCs.

Michael Dell, chief executive, speaking in New York during the launch of a new range of computers designed for new businesses acknowledged that many of Dell's customers do not want the software loaded on to their new machines. The new line, dubbed Vostro, will be largely free of extra software.

"Customers really hated trialware," Mr Dell said, citing a recent survey of 1,800 small business owners in 12 countries, which revealed that "eliminating trialware, sample software and freeware" was the number one priority for most small business customers.

Frank Muehleman, Dell's vice-president of small-medium business, admitted the survey result was "a shock" and said Dell was considering giving private customers the choice of whether to buy PCs with or without trialware.

PC companies typically receive a small commission from software vendors if a consumer signs up for a full version of the software after testing it on a new machine. It often includes security software, toolbars and other utilities that can clog up a system and annoy users with frequent pop-up subscription reminders.

Analysts have estimated revenues from this source can be as much as $10 or $20 a machine - a significant amount in an industry with paper-thin margins.

The move on trialware came as Mr Dell reiterated warnings that the company faces a long struggle to regain its lost momentum.

Mr Dell said "steady progress" was being made in its turnround, but conceded it had a "long way to go" in order to make up ground lost to its competitors.

Dell has been struggling against falling margins and slowing sales growth for nearly two years.

Last year, it lost its number one position in the PC market to Hewlett-Packard, a long-time rival.

Shares of the company, which hit a high of $41.29 in mid-2005, had fallen by nearly half by the time Mr Dell replaced Kevin Rollins as chief executive in January in an attempt to turn the company around.

Since his return as chief, Mr Dell, has orchestrated a series of management changes and cost cuts designed to put the company back on track.

Dell shares slipped 1.2 per cent yesterday to end the day at $28.6.