Dell Collaborates With Secureworks On Subscription-Based Cybersecurity Service

Dell Technologies has unveiled a new subscription-based service for protecting and securing Information Technology (IT) environments against cybersecurity threats. Powered by Secureworks Taegis XDR, Dell Technologies Managed Detection and Response service will provide 24/7 security across all endpoints, devices, and data center networks.

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The subscription-based managed service will shield the cloud environment against cyber threats, while also improving customers’ security posture. According to Dell (DELL), the service will monitor, investigate, and respond adequately against cyber threats.

Dell will assist customers in deploying the security service controls across all data sources. Whenever there is a threat, the security service will investigate and provide recommended actions. It will also offer step-by-step instructions on how to contain and remediate the threats.

“With Dell Technologies Managed Detection and Response, Dell helps businesses shift from a reactive to proactive security stance through our services, cybersecurity expertise, global reach and Secureworks technology,” said Doug Schmitt, Dell Technologies Services’ President.

The Secureworks (SCWX) security system is well suited for organizations with 50 endpoints or more as it leverages the experience that Dell’s security analysts have gained over the years. The security system is currently available in North America and will be released as a standalone service worldwide on May 10.

Dell shares are up by about 26% year-to-date after a 42% pop in 2020. (See Dell stock analysis on TipRanks).

As Dell moves to spin off its 81% stake in VMware Inc (VMW) following a strategic review, RBC Capital’s analyst Robert Muller has reiterated a Hold rating. The transaction will result in each Dell shareholder getting approximately 0.44 shares of VMware. VMware will also pay a special dividend of $11.5 billion to $12.0 billion to its existing shareholders.

“We think the planned spin-off helps unlock the persistent SOTP discount that’s been embedded in Dell’s shares since it returned to the public markets in late 2018, and like that it significantly eases the path to investment grade, which should bring a more balanced capital allocation strategy ahead” Muller in a statement.

The analyst has since reiterated a $95 price target on Dell, implying 5.36% downside potential to current trading levels.

Dell commands a Strong Buy Consensus rating on Wall Street based on 9 Buy and 3 Hold ratings. The average analyst price target of $107.83 implies 7.42% upside potential to current levels.

Dell scores a “Perfect 10” on the TipRanks’ Smart Score rating system, suggesting that it could outperform market averages.