dell profile

COMPANY PROFILE

Dell Inc.

REFERENCE CODE: 8E2C53C7-29AC-4848-9511-9B752758E3B4PUBLICATION DATE: 24 Oct 2014www.marketline.comCOPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................5

Key Employees...................................................................................................11

Key Employee Biographies................................................................................12

Major Products and Services............................................................................15Revenue Analysis...............................................................................................16

SWOT Analysis...................................................................................................17

Top Competitors.................................................................................................23

Company View.....................................................................................................24

Locations and Subsidiaries...............................................................................25

Dell Inc. Page 2 MarketLine

Dell Inc.TABLE OF CONTENTS

COMPANY OVERVIEW

Dell Inc. (Dell or the company) is an information technology (IT) company offering a range ofproducts, including desktop personal computers (PC), servers, networking products, storage, mobilityproducts, software and security. It also provides a range of services including consulting andproduct-related support services.The company operates in Americas, Europe, the Middle East, Asiaand other geographic regions. Dell is headquartered in Round Rock, Texas.

Dell is a private company and has not released its annual report. Therefore, the financial details arenot available.

KEY FACTS

Dell Inc.Head OfficeOne Dell WayRound RockTexas 78682USA1 800 289 3355Phone

Fax

http://www.dell.comWeb AddressJanuaryFinancial Year End


Dell Inc.Company Overview

BUSINESS DESCRIPTION

Dell Inc. (Dell or "the company") is engaged in the designing, developing, manufacturing, andmarketing a range of information technology (IT) products and services. It also offers related supportservices. The company conducts its business in several countries located across the Americas,Europe, the Middle East, Asia and other geographic regions.

The company operates through four business segments*: end-user computing (EUC), enterprisesolutions group (ESG), Dell Software Group and Dell Services.

The EUC segment offers notebooks, desktop personal computers (PCs), thin client products, tablets,third-party software, and EUC-related peripherals.

The companys ESG segment includes servers, networking, storage, and ESG-related peripherals.The company offers tower servers and rack servers under the brand name of PowerEdge. In addition,Dell offers blade server solutions, shared infrastructure, power management, server systemmanagement and cloud compute solutions. The storage systems offered by the company includenetwork attached storage (NAS), storage area network (SAN), direct attached storage, and dataprotection. The companys networking offerings include fixed port Ethernet switches, wirelessnetworking, chassis switches, PowerEdge M series blade interconnects, server network adapters,network management and fiber channel SAN switches.

The Dell Software Group of the company offers systems management, security, and informationmanagement software offerings.

Dell Services segment includes a range of IT and business services, including support and deploymentservices, infrastructure, cloud, and security services, and applications and business process services.

*Dell reorganized its business segments in the first quarter of FY2014 from the customer-centricsegments it maintained through FY2013.


Dell Inc.Business Description

HISTORY

Dell Inc.s (Dell or the company) history date backs to 1984 when Michael Dell founded DellComputer Corporation to sell personal computer (PC) systems directly to customers. In 1985, thecompany introduced the Turbo, its first PC. In 1988, Dell made its initial public offering. In the followingyear, it introduced its first notebook PC. In 1990, the company opened a manufacturing center inLimerick, Ireland to serve the European, Middle Eastern, and African markets. In 1993, Dell expandedits global presence with new subsidiaries in Australia and Japan. In 1996, Asia Pacific manufacturingcenter was started in Malaysia and it started selling PCs through its website. In the following year,the company introduced its workstation systems.

In 1998, Dell expanded its manufacturing facilities in the Americas and Europe. In the following year,the company opened a facility in Nashville, Tennessee and a manufacturing facility in Eldorado doSul, Brazil to serve its customers in Latin America. In 1999, Dell acquired CovergeNet, a storagehardware and software developer.

In 2000, the company launched PowerApp appliance servers. In the following year, the companylaunched Blade server, Aximx5 handheld and 3100MP projector. In 2003, the company's name waschanged from Dell Computer Corporation to Dell Inc. In the same year Dell opened its second contactcenter in Hyderabad, India, and a Dell Enterprise Command Center in Limerick, Ireland.

In 2005, the company opened its third manufacturing location in the US at Winston-Salem, NorthCarolina. In the following year, the company expanded its operations in India, by establishing itsfourth Indian customer contact center in Gurgaon, and first manufacturing facility in Tamil Nadu,India. In 2006, Dell entered the high-end PC gaming market with the acquisition of Alienware, agaming PC manufacturer.

In 2007, Dell established a new global research and development center in Bangalore, India, fordeveloping next generation network servers, data-storage systems and software products. In thesame year, the company expanded its operations in Brazil by building a new plant at Hortolandia,Sao Paulo. Subsequently, Dell partnered with Gome, China's largest consumer electronics retailer,for retail sales in China. During the same year, the company expanded its retail presence by enteringinto retail agreements with DSG International, one of the major consumer electronics retailers inEurope; and Tesco, an international retailer with operations in Europe and Asia. Dell acquired severalcompanies, including SilverBack Technologies, a service delivery platform provider; ASAP Software,a provider of software solutions and licensing services; ZING Systems, a consumer technology andservices company; EqualLogic, a provider of high-performance iSCSI storage area network (SAN)solutions; and Everdream, a provider of Software-as-a-Service (SaaS) solutions for remote-servicemanagement.

In 2008, Dell established its second European manufacturing plant in Poland. In the same year, Dellacquired Networked Storage, a consultancy firm specialized in IT data storage solutions.Subsequently, Dell expanded its retail presence in China by adding Suning as retail partner, by


Dell Inc.History

extending relationship with Gome and by launching its products at Hontu, Wuxing, Meicheng, HengChang and Heyong stores. During the same year, the company acquired MessageOne, a providerof SaaS enabled enterprise-class e-mail business continuity, compliance, archiving and disasterrecovery services. Dell and EMC extended their global alliance through 2013 and added EMC CelerraNX4 storage system to the portfolio of Dell EMC networked storage systems.

In 2009, Dell acquired Allin's Microsoft IT consulting and solutions segments. In the same year,networking solutions provider Cisco and Dell collaborated to offer next-generation IT solutions inthe area of data center infrastructure. Subsequently, the company launched end-to-end MobileClinical Computing Solution for accessing and organizing patient information within a secureenvironment. During the same year, Dell sold its North American remanufacturing operation inTennessee to GENCO Supply Chain Solutions, a third-party logistics services provider.The companypartnered with data and storage networking products provider, Brocade, to offer computing, networkingand storage solutions through the Dell global sales organization. The company also partnered withnail lacquer manufacturer, OPI, to launch a new polished laptop collection, including 26 color choicesfor Dell Inspiron Mini, Inspiron and Studio laptops. Subsequently, Dell and salesforce.com, anenterprise cloud computing company, together launched certified Dell-salesforce.com solutionstargeting small and medium businesses. In 2009, Dell signed an agreement with networking equipmentmanufacturer, Juniper Networks, to offer networking solutions under Dell's PowerConnect brand.Subsequently, Dell completed the $3.9 billion acquisition of Perot Systems and renamed it as DellPerot Systems.

In 2010, the company acquired KACE, a systems management appliance company; and Scalent,a private company that provides software for data center infrastructure; and Ocarina Networks, anonline storage optimization solution provider, and its compression and deduplication technology. Inthe same year, Dell formed a strategic alliance with Spanish broadband and telecommunicationsprovider, Telefonica, for a new collaboration to develop next generation communication productsand services. Subsequently, the company collaborated with Intel and launched a cloud-based learningmanagement platform. During the same year, Dell partnered with OnLive, a provider of on-demand,instant play video games, to launch the OnLive Game Service. Dell and Microsoft formed a strategicpartnership that allowed Dell to use the Windows Azure platform appliance as a part of its DellServices Cloud to develop and launch next-generation cloud services. Later in 2010, Dell introducedthe Inspiron duo convertible tablet, an addition to the company's mobility product portfolio. In thesame year, Dell signed a five-year contract with global alternative asset manager, the Carlyle Group,to provide hosting and support for Oracle PeopleSoft Enterprise and Hyperion PerformanceManagement applications.

The company continued its acquisition spree in 2011. The company acquired SecureWorks, aprovider of information-security services; Compellent Technologies, a provider of highly-virtualizedstorage solutions; Dell Financial Services Canada; CIT Vendor Finance's Dell-related assets andsales and servicing functions in Europe; and Force10 Networks, a provider of high-performancedatacenter networking solutions. In the same year, Dell launched Dell Streak's dg version smartphonein collaboration with T-Mobile; and also launched first public cloud offering, Dell Cloud with VMwarevCloud Datacenter Service. Subsequently, the company entered into strategic partnerships, includinga partnership with cloud security and compliance solutions provider, Qualys, to manage and re-sellthe QualysGuard suite of security and compliance services. It also partnered with planning technology


Dell Inc.History

provider, ikaSystems, to help payers reduce administrative costs through advanced processingautomation and business process solutions. During the same year, Dell signed a six-year IToutsourcing contract with European travel company, TUI Travel.The company entered into a five-yearcontract with Hyatt, an affiliate of Hyatt Hotels, for comprehensive IT services and solutions.Subsequently, the US Veterans Affairs awarded a contract worth $476 million to Dell Solutions toprovide client technology and services.

In 2012, Dell and Red Hat, a provider of open source solutions, signed an agreement to produceDell and Red Hat hardware/software solutions. In the same year, CAMICO, a provider of specialtyliability insurance for the accounting profession, selected Dell to deliver sales force automationsoftware. Subsequently, Dell entered into a strategic alliance with Ramco Systems to deliver Ramco'senterprise resource planning (ERP)-as-a-service. During the same year, Dell Services was selectedby specialty managed healthcare service provider, MedRisk, to support applications development,infrastructure expansion and managed security services as part of a 10-year agreement.The companymade several acquisition in 2012, including AppAssure, a provider of application protection for virtual,physical and cloud infrastructure; Clerity Solutions, a provider of applications modernization andre-hosting solutions and services; Make Technologies, a provider of application modernizationsoftware and services; SonicWALL, a provider of advanced network security and data protectionsolutions; and Wyse Technology, a provider of cloud client computing.

The company enhanced virtual desktop infrastructure (VDI) offerings with the launch of Dell Wysezero client end points and Dell EqualLogic storage arrays and software, in 2012. In the same year,the company acquired Quest, an IT management software provider. Subsequently, Dell launchedSmart Grid Data Management Solution, a new bundled solution designed to help electric utilitycompanies manage their distribution networks, minimize and potentially avoid outages. During thesame year, Dell launched XPS 10 tablet, Latitude 10 tablet and Latitude 6430u notebook. Dellextended its cloud client computing portfolio with new solutions validated by Citrix, a server anddesktop virtualization solutions provider. Dell acquired Gale Technologies, a provider of infrastructureautomation software. Subsequently, Dell acquired Credant Technologies, a provider of data protectionsolutions to control, manage and secure data sent from endpoints to servers, storage and the cloud.

In February 2013, Michael Dell, the Founder, Chairman and Chief Executive Officer at Dell, inpartnership with global technology investment firm Silver Lake, signed an agreement to take thecompany private.

In April 2013, Dell partnered with Red Hat, Intel and VMware to open a dedicated center in Verona,Wisconsin where hospitals can test and deploy a new option for running Epic Systems' electronichealth records (EHR) software on Red Hat Enterprise Linux. In the same month, Dell partnered withMicrosoft to become a global distributor, outsource manufacturer and integrator for WindowsEmbedded products.

In May 2013, Dell acquired Enstratius, an enterprise cloud-management software and servicesprovider. In the following month, Dell, Intel and statistical software company Revolution Analyticsunveiled Big Data Innovation Center in Singapore to provide training programs, proof-of-concept


Dell Inc.History

capabilities and solution development support on big data and predictive analytic innovations forAsia market.

In October 2013, Dell expanded its direct financing capabilities in Europe providing Dell commercialcustomers access to direct Dell financing in 16 countries. In the same year, Dell completed its goingprivate transaction. Michael Dell and Silver Lakes Partners acquired the company in a transactionvalued at approximately $24.9 billion.

In November 2013, Aspen Valley Hospital (AVH), a community hospital located in the Colorado skiregion, started working with Dell and lifeIMAGE, a company that offers solutions to access and sharepatient imaging information between patients, physicians, and healthcare institutions. The threecompanies collaborated to implement a solution featuring Dell's cloud-enabled image managementand archival services and lifeIMAGE's medical image and information-sharing capabilities.

In December 2013, Dell formed an alliance with Microsoft, to deliver Windows Azure to Dell customersworldwide through the Dell Cloud Partner Program. This adds to the previously announced allianceproviding Application Development Services on Windows Azure. During the same month, the companyexpanded its worldwide agreement with Accenture, a multinational management consulting, technologyservices and outsourcing company, to deliver cloud and security solutions and applicationmanagement services to mid-market and select enterprise customers.

In January 2014, Framestore, a British visual effects company, partnered with Dell to expand itsbusiness presence in North America.

Dell won a five-year services contract with Lufthansa, the largest airline in Europe, whereby Dell willprovide maintenance and support for the front-end of Lufthansa's ticketing and reservations passengerbooking system, in February 2014. In the same month, Dell extended its collaboration with Google,a provider of internet-related services and products, to further meet the needs of the evolvingworkforce. As part of its growing relationship with Google, Dell is developing Dell Chromebox formeetings, an integrated solution designed to help geographically dispersed teams conduct meetingsfrom a large variety of devices. Subsequently, the company extended its collaboration with Red Hatto jointly engineer OpenStack-based NFV and software-defined networking (SDN) solutions for thetelecom market segment. Dell also collaborated with Calsoft Labs, an Alten Group company, todeliver NFV and SDN solutions that include the latest Dell OEM products.

In February 2014, Dell enhanced collaboration with Ingram Micro to expand its channel partnerprogram for delivering electronic medical records (EMR) solutions and services to the physicianmarket. In the same month, the company was selected by the US Nuclear Regulatory Commissionto build and install on-premises, federal government compliant private cloud. Subsequently, Dellwas chosen by the US Department of Homeland Security and the US General Services Administration(GSA) to provide those agencies with IT services and solutions worth up to $22 billion.

Community Health Plan of Washington, a not-for-profit health plan offering a variety of Medicareand Medicaid coverage options, selected Dell Services and ikaSystems to position the plan to growin response to federal healthcare reform initiatives, in March 2014. In the same month, the company


Dell Inc.History

acquired StatSoft, a provider of advanced analytics solutions that deliver a wide range of data mining,predictive analytics and data visualization capabilities. The acquisition of StatSoft bolstered DellSoftware's portfolio of information management solutions. Subsequently, Coats, an industrial threadand consumer textile crafts business, selected Dell Software migration solutions for worldwide moveto Office 365.

In April 2014, Dell and Red Hat launched co-engineered, enterprise-grade, private cloud solutionsbased on OpenStack, the Dell Red Hat Cloud Solution, powered by Red Hat Enterprise LinuxOpenStack Platform. In the same month, Dell SecureWorks expanded its cyber threat servicesportfolio with the addition of Advanced Endpoint Threat Detection (AETD) managed service.Subsequently, Dell designed and installed a virtualized end-to-end computing environment forBlueSun, an Ontario-based wealth management software provider.

Dell announced a reseller agreement with SDN pioneer, Big Switch Networks, to offer combinedDell and Big Switch Big Tap Monitoring solution, a SDN-enabled fabric monitoring solution, in April2014. In the same month, Spin VFX, a visual effects studio, selected Dell to supply IT infrastructurefor its new location in Toronto, Canada. Subsequently, Dell OEM Solutions collaborated with EmersonProcess Management, a business of Emerson, to deliver Emerson DeltaV Digital Automation System,a process control solution.

In May 2014, the company expanded its cloud client-computing offerings with the addition of theDell Wyse 5000 series all-in-one thin client, the Dell Wyse quad display 7000 series thin client, andthe Dell Wyse Xenith 3 zero client for Citrix. In the same month, Dell expanded its mobility offeringsthrough partnerships with Apperian, a platform for securing and managing enterprise mobile apps;and Kony, a cloud-based mobile application development platform.

In June 2014, Dell Services announced the expansion of its migration-services portfolio with thenew Windows Server 2003 Migration Service.

In July 2014, Dell Software announced the availability of two new backup appliances and a host ofenhancements to its AppAssure backup, replication and disaster recovery software. Newly launchedsolutions include the Dell DL1000, an AppAssure-powered purpose-built backup appliance optimizedfor use by small- and medium-sized businesses, as well as managed service providers, and the DellDR2000v, a software-based virtual deduplication appliance optimized for use in remote office andbranch office (ROBO) settings. In the same month, Dell launched fully localized simplified Chineseversion of Toad for Oracle which marked the latest milestone for Dell Softwares flagship databasedevelopment and management solution.

In August 2014, Dell unveiled a range of innovative solutions across its enterprise portfolio thatoptimize and simplify management and productivity within customers.

In the following month, the company introduced Dell PowerEdge 13th generation server portfolio,advanced portfolio of PowerEdge servers, designed to address and optimize the evolving spectrumof application and workload requirements. In the same month, Dell opened Internet of Things (IoT)lab at Dell Silicon Valley Solution Center in Santa Clara, California.The new lab helps the customers


Dell Inc.History

to explore, test and deploy IoT solutions that help drive business outcomes and accelerate time tomarket. Further, in September 2014, the company was named a Cloudera systems integrator partnerfor Hadoop implementations.


Dell Inc.History

KEY EMPLOYEES

BoardJob TitleNameExecutive BoardChairman of the Board, Chief Executive OfficerMichael S Dell

Senior ManagementVice Chairman, Operations, and President, ClientSolutions

Jeffrey W. Clarke

Senior ManagementChief Commercial Officer and President,Enterprise Solutions

Marius A. Haas

Senior ManagementSenior Vice President, Human ResourcesSteve H Price

Senior ManagementSenior Vice President and Chief MarketingOfficer

Karen H. Quintos

Senior ManagementSenior Vice President and General CounselRichard J. Rothberg

Senior ManagementSenior Vice President and Chief Financial OfficerThomas W. Sweet

Senior ManagementPresident, SoftwareJohn A. Swainson

Senior ManagementPresident, ServicesSuresh C. Vaswani

Senior ManagementPresident and Global Head, Application ServicesPrasad Thrikutam

Senior ManagementVice President and Chief Financial Officer,Services

Ganesh Murthy


Dell Inc.Key Employees

KEY EMPLOYEE BIOGRAPHIES

Michael S Dell

Board: Executive BoardJob Title: Chairman of the Board, Chief Executive Officer

Mr. Dell serves as the Chairman of the Board and Chief Executive Officer at Dell. He founded thecompany in 1984. Mr. Dell also founded MSD Capital in 1998. Mr. Dell serves as the HonoraryMember of the Foundation Board at the World Economic Forum and is the Executive CommitteeMember at International Business Council. He also serves as a Member at Technology CEO Council,the US Business Council, and the Business Roundtable. Mr. Dell serves on the Governing Boardat Indian School of Business in Hyderabad, India and is a Board Member at Catalyst.

Jeffrey W. Clarke

Board: Senior ManagementJob Title: Vice Chairman, Operations, and President, Client Solutions

Mr. Clarke serves as the Vice Chairman of Operations and the President of Client Solutions at Dell.He also leads the customer support, sales operations, commerce services functions, and IT planningand governance globally at the company. Mr. Clarke joined the company in 1987 as a QualityEngineer and served in a variety of engineering and management roles. He also held various otherpositions at the company, including the Director of Desktop business, and the Vice President andGeneral Manager of Relationship Product Group. Prior to joining the company, Mr. Clarke servedas a Reliability and Product Engineer at Motorola.

Marius A. Haas

Board: Senior ManagementJob Title: Chief Commercial Officer and President, Enterprise Solutions

Mr. Haas serves as the Chief Commercial Officer and the President of Enterprise Solutions at Dell.Prior to joining the company in 2012, he served at Kohlberg Kravis Roberts (KKR) where he wasresponsible for identifying and pursuing new investments. Prior to that, Mr. Haas served as theSenior Vice President and Worldwide General Manager at Hewlett-Packards (HP) NetworkingDivision, and also served as the Senior Vice President of Strategy and Corporate Development.Earlier in his career, he held a range of senior operations roles at Compaq and Intel.

Steve H Price

Board: Senior Management


Dell Inc.Key Employee Biographies

Job Title: Senior Vice President, Human Resources

Mr. Price serves as the Senior Vice President of Human Resources at Dell. He is also responsiblefor overseeing global facilities at the company. Mr. Price joined Dell in 1997 and held leadershiproles, including the Vice President of HR for the global consumer business, global talent managementand Americas human resources. Prior to joining Dell, Mr. Price served for 13 years at SC JohnsonWax in various positions, including sales, HR and a variety of other senior positions. He serves asa Member of the Executive Advisory Board at Rawls College of Business at Texas Tech Universityand on the Executive Advisory Board at Wharton School at the University of Pennsylvania.

Karen H. Quintos

Board: Senior ManagementJob Title: Senior Vice President and Chief Marketing OfficerSince: 2010

Ms. Quintos has been the Senior Vice President and Chief Marketing Officer at Dell since 2010.Previously, she served as the Senior Vice President for Global Public Business. Prior to that, Ms.Quintos served as the Vice President of Marketing for the commercial business in North Americaand also held various executive roles in services, contact center and supply chain managementteams at the company. Prior to joining Dell in 2000, she served as the Vice President of GlobalOperations and Technology at Citigroup. Before that, Ms. Quintos served for 12 years at Merck andheld various roles in marketing, planning, operations, and supply chain.

Richard J. Rothberg

Board: Senior ManagementJob Title: Senior Vice President and General Counsel

Mr. Rothberg serves as the Senior Vice President and General Counsel at Dell. He is also responsiblefor global security. Mr. Rothberg joined the company in 1999 and held leadership positions in thelegal department, including the Vice President of legal supporting business in the Europe, MiddleEast and Africa region; the Vice President of legal for the Asia-Pacific and Japan region; and theVice President of legal for the North America and Latin America regions. Prior to joining the company,he served for eight years at Caterpillar and as an Attorney at IBM Credit Corporation and Rogers &Wells.

Thomas W. Sweet

Board: Senior ManagementJob Title: Senior Vice President and Chief Financial OfficerSince: 2014Age: 54



Mr. Sweet has been the Senior Vice President and Chief Financial Officer at Dell since January2014. He is also responsible for Corporate Strategy and Development. Previously, Mr. Sweet servedas the Vice President of Corporate Finance, Controller and Chief Accounting Officer at the company.Prior to that, he served in a variety of finance leadership roles at the company, including the FinanceVice President for overall finance activities within the corporate business, education, governmentand healthcare business units and as the Head of Internal Audit. Prior to joining Dell in 1997, Mr.Sweet held various leadership roles in education and corporate business units. Before that, he servedas the Vice President of Accounting and Finance at Telos. Mr. Sweet served for 13 years at PriceWaterhouse in a variety of roles primarily focused on providing audit and accounting services to thetechnology industry.

John A. Swainson

Board: Senior ManagementJob Title: President, Software

Mr. Swainson serves as the President of Software at Dell. Prior to joining Dell in 2012, he servedas a Senior Advisor at Silver Lake and served on the Boards of Directors at Broadcom, Assurant,Cadence Design Systems and Serena Software. Previously, Mr. Swainson served as the ChiefExecutive Officer and a Director at CA Technologies from 2005 to 2009. Prior to that, he served atIBM for more than 26 years and held various management positions, including the General Managerof the Application Integration Middleware Division. Mr. Swainson also led the IBM worldwide softwaresales organization and held senior leadership roles in engineering, marketing and sales management.He currently serves on the Board of Directors at Visa.

Suresh C. Vaswani

Board: Senior ManagementJob Title: President, Services

Mr. Vaswani serves as the President of Services at Dell. Previously, he served as the Chairman ofDell India and led the global applications and business process outsourcing (BPO) services business.Prior to joining Dell, Mr. Vaswani served as the Joint Chief Executive Officer at Wipros IT businessand a Member of the Board of Directors at Wipro.



MAJOR PRODUCTS AND SERVICES

Dell Inc. (Dell or the company) is an information technology (IT) company offering a broad range of products, including desktop personal computers (PC), servers, networking products, storage, mobility products, software and security. It also provides a range of services including consulting and product-related support services.The company's key products and services include the following:

End-user computing (EUC):

NotebooksDesktopsTabletsThin clients Third party softwareEUC related peripherals

Enterprise solutions group (ESG):

ServersNetworking productsStorage productsESG related peripherals

Dell Software Group:

Systems management softwareSecurity solutionsInformation management software

Dell Services

IT and business servicesSupport and deployment servicesInfrastructure servicesCloud servicesSecurity services Applications and business process services


Dell Inc.Major Products and Services

REVENUE ANALYSIS

Dell is a private company and is not obliged to release its annual report. Hence the revenue breakdownis not available.


Dell Inc.Revenue Analysis

SWOT ANALYSIS

Dell Inc. (Dell or "the company") is an information technology (IT) company, offering a broad rangeof products, including desktop PCs, servers, networking products, storage, mobility products, softwareand peripherals. Dell has a broad product and services portfolio, which allows it to provide end-to-endsolutions and tap high value customers. It also facilitates strong revenue growth and enables Dellto better sustain cyclical downturns. However, intense competition may affect the company's industryunit share position, revenue and profitability in the coming years.

WeaknessesStrengths

Relatively weaker presence in smartphonesmarket

Broad portfolio of products and servicesRobust inorganic growth strategyDiversified end markets and geographicreach

ThreatsOpportunities

Decline in the PC marketPositive outlook for cloud computing marketprovides new revenue opportunity Intense competitionGrowth in data center networking market Weak macro-economic conditionsBig Data represents potential growthopportunity

Strengths

Broad portfolio of products and services

Dell offers a broad range of products and services. The company's products and service portfoliocan be broadly categorized into: client, servers, networking, storage, services, software, and third-partysoftware and peripherals. The companys end-user computing (EUC) segment offers notebooks,desktop PCs, thin client products, tablets, third-party software, and EUC-related peripherals. Thesegment also offers cloud-based mobile computing solutions and includes a portfolio of Windows-8touch-enabled tablets and convertibles. According to industry estimates, Dell was the third largestplayer in the worldwide PC market with shipments of 9.5 million units in the first quarter of 2014accounting for 12.5% of the market. The Enterprise Solution Group (ESG) segment offers servers,networking, storage, and ESG-related peripherals. Dell is the third largest player in the worldwideserver market with a market share of 15.2% in 2013. Dell also offers a range of networking productsfor the enterprise IT environments. The company offers a comprehensive portfolio of advancedstorage solutions, including storage area networks (SAN), network-attached storage (NAS),


Dell Inc.SWOT Analysis

direct-attached storage, and various backup systems. The segment also offers network-attachedstorage gateways, and enterprise-class storage blade arrays for converged infrastructure offerings.

Dell Software Groups portfolio includes system management, security software offerings, andinformation management software. The company also sells a range of third-party software andperipherals, including monitors, printers, projectors, other client and enterprise peripherals, as wellas third-party software products. The company also has a robust services portfolio. The companyoffers a range of configurable IT and business services, including infrastructure technology, consultingand applications, and product-related support services.The company primarily offers three categoriesof services, including support and deployment services; infrastructure, cloud, and security services;and applications and business process services.

A broad product and services portfolio allows the company to provide end-to-end solutions and tapinto high value customer base. It also facilitates strong revenue growth and enables Dell to bettersustain cyclical downturns.

Robust inorganic growth strategy

The company has undertaken a number of strategic acquisitions in the recent past to diversify itsportfolio and enhance footprint. For instance, in March 2014, the company acquired StatSoft, aprovider of advanced analytics solutions that deliver a wide range of data mining, predictive analyticsand data visualization capabilities. The acquisition of StatSoft bolstered Dell Software's growingportfolio of information management solutions. During the same year, Dell acquired portions of CITVendor Finances Dell-related assets and sales and servicing functions in Europe. This enabled theDell Financing Services (DFS) to expand its presence in Europe. Similarly, during 2013, Dell acquiredEnstratius, an enterprise cloud-management software and services provider that delivers single andmulti-cloud management capabilities.

Earlier, in 2012, Dell acquired Credant Technologies, a provider of data protection solutions. Thisacquisition strengthened the companys security solutions offerings. During the same year, Dellacquired Gale Technologies, a provider of infrastructure automation software; SonicWALL, a providerof advanced network security and data protection solutions; Wyse Technology, a leading providerof cloud client computing; and Quest, an IT management software provider offering a selection ofsolutions that facilitate solving IT related problems.

Dell has historically pursued acquisitions to expand its presence in the non-core and adjacentmarkets. The company has been able to establish a strong position in some of these markets dueto such acquisitions. The acquisitions are aiding Dell to position itself as a provider of complete ITproducts and services, and compete effectively against dominant players in these markets. Severalacquisitions made by Dell enabled it to establish its presence in some of the growth markets. Theseacquisitions are expected to contribute significantly to the overall growth. They also facilitate quickpenetration into markets that are strategically important for Dell.

Diversified end markets and geographic reach



Dell has proactively expanded and diversified its operations and has transformed itself since itsinception. The company has focused on positioning itself as a company offering IT products andsolutions from originally being a PC brand. Accordingly, it has made several investments and gainedsignificant market in enterprise solutions and in offering IT services. These segments have highermargins and are also significant growth areas. Dell has a diversified customer base as well, owingto the expansion of its product and service portfolio. Similarly, Dell has also diversified geographically.Diversified end markets and geographic reach spreads the business risk of the company. Furthermore,they offer access to a wider customer base and enable continued inflows resulting in a strong revenueposition for the company.

Weaknesses

Relatively weaker presence in smartphones market

The company has relatively weaker presence in the robustly growing smartphone market. Although,Dell forayed into the smartphones market in 2007, that business did not turn out well. As a result,the company disbanded its smartphones business unit in 2010. Comparatively, Dells key competitor,Lenovo has a strong smartphones business. Lenovo is the second largest smartphone manufacturerin China after Samsung. According to industry estimates, its worldwide smartphone shipments grewover 63% in the first quarter of 2014. Globally, Lenovo is ranked fourth largest manufacturer ofsmartphones. It further strengthened its smartphones market presence through the acquisition ofMotorola Mobility form Google. Similarly, HP, the companys another competitor, re-entered thesmartphones market with the launch of two new large-format smartphones in India, in January 2014.While Dells competitors are focused on manufacturing and selling smartphones, which are in hugedemand, the company is only restricted to reselling other vendors' smartphones.

Relatively weaker presence in the smartphones market places Dell in a disadvantageous position,as its competitors are well positioned to benefit from the robust smartphones market.

Opportunities

Positive outlook for cloud computing market provides new revenue opportunity

The worldwide demand for cloud computing services is expected to record strong growth in comingyears. Cloud computing is a computing infrastructure model, which enables delivery ofsoftware-as-a-service (SaaS). This reduces the upfront royalty or licensing payments, investmentin hardware and other operating expenses. As a result of its benefits, the cloud services market isexpected to grow rapidly. Dell has been focusing on strengthening is private cloud offerings throughits partner connect program. According to industry estimates, the private cloud computing marketis expected to reach $22.2 billion by 2017. Also, the spending on the public IT cloud services isexpected to reach $107 billion in 2017 from $47.4 billion in 2013, representing a CAGR of 23%during that period.



The company focused on enhancing its cloud portfolio over the past few years. Dell launched itsfirst public cloud offering, Dell Cloud with VMware vCloud Datacenter Service in 2011. In the sameyear, Dell collaborated with enterprise software company Cloudera for large scale data analysis andmodeling through open source solution. Since then the company has enhanced its cloud portfoliothrough acquisition and partnerships. For instance, In April 2014, Dell and Red Hat, a provider ofopen source solutions, launched co-engineered, enterprise-grade, private cloud solutions based onOpenStack, the Dell Red Hat Cloud Solution, powered by Red Hat Enterprise Linux OpenStackPlatform.

Positive outlook of the cloud computing services and the company's significant presence in thismarket will provide incremental revenues and enhanced customer base to the company.

Growth in data center networking market

According to industry estimates, data center networking market is expected to grow robustly in thecoming years. The data center networking market is expected to grow from $12.5 billion in 2013 to$21.9 billion by 2018, representing a CAGR of 12% during 2013-18. The market is expected to beprimarily driven by increasing adoption of next-generation Ethernet switches, SAN products, andnetwork security tools for virtualized data centers. Dell is well positioned to benefit from the growingdata center networking market. The company offers a range of networking products including fixedport Ethernet switches, wireless networking, chassis switches, PowerEdge M series bladeinterconnects, server network adapters, network management and fibre channel SAN switches,among others. The company with a broad and strong data center networking product portfolio willbenefit from rapidly growing end market, thereby increasing its revenues and market share.

Big Data represents potential growth opportunity

Big Data, which is a primary contributor to the pace of overall data growth, refers to the largerepositories of corporate and external data, including unstructured information created by newapplications including medical, entertainment, energy and geophysical, social media and other webrepositories. It also refers to the new analytics and other technologies that are available to helppeople do things with (and unlock the value contained within) the vast amounts of enterprise andexternal data. According to industry estimates, the total amount of digital information is expected toreach 20 zettabytes by 2015 and one yottabyte by 2030. Unstructured data such as digital video,sound files and images are expected to amount for more than 80% of the digital information. Further,the big data market is predicted to be worth $47 billion by 2017.

Industry estimates also suggest that the continued growth of data in the digital universe would createa huge challenge for IT departments who must store and manage information. Growing unstructureddata rapidly within organizations is not suitable to be stored, managed and analyzed by traditionalIT systems. To address this, IT departments are expected to acquire new technology, build newapplications and serve insightful information. This new technology must be designed to operate atpetabyte scale - employing "scale-out" architecture. A new business application must be able to bebuilt rapidly and serve up information so that business users can make informed decisions and take



action. Hence, Big Data creates huge opportunities for organizations that can turn all of this datainto insightful information and deliver it to business users in a timely fashion.

The company is well poised to benefit from the growing Big Data market.The company offers severalsolutions to address the Big Data, including Dell Apache Hadoop solutions, Dell Cloudera Hadoopsolution, Kitenga Analytics Suite, Cloudera Hadoop services. Dell also enhanced its focus onaddressing Big Data solutions. For instance in March 2014, the company acquired StatSoft, a providerof advanced analytics solutions that deliver a range of data mining, predictive analytics and datavisualization capabilities. The acquisition of StatSoft bolstered Dell Software's growing portfolio ofinformation management solutions.

The positive outlook for the Big Data market and Dells significant presence will provide it anopportunity to gain market share in the future.

Threats

Decline in the PC market

The PC market has been struggling since last few years. Slowing demand in emerging markets andcannibalization by tablets and smartphones has led to a downfall in PC sales. According to industryestimates, the global PC shipment volume is expected to decline from 314.2 million units in 2013 to305.1 million units in 2017 at a CARC of 1% from 2013-17 periods. Further, the shipment volumein the mature markets is expected to decline from 132 million units in 2013 to 120.8 million units in2017 at a CARC of 2% for 2013-17 periods. Despite efforts to diversify into other business segments,Dell is significantly exposed to the PC market. The adverse outlook of the global PC market isexpected to adversely impact the company's topline.

Intense competition

The company faces intense competition in all areas of its business, including from both branded andgeneric competitors. Dell competes based on its ability to offer competitive, scalable, and integratedsolutions with the most current and desired product and services features. It also competes in termsof price, quality, brand, technology, reputation, distribution and range of products, among otherfactors. Dell faces stiff competition in enterprise PC and server markets from Acer, Apple, HP,Lenovo, IBM and Toshiba, among others. In some regions, the company faces competition fromlocal companies and from generically-branded or white box manufacturers. In the consumer market,Dell faces stiff competition from HP, Acer, Apple, Sony, Lenovo and Asustek. Furthermore, in theEuropean and Asian netbooks markets the company faces intense competition from Asustek. Intensecompetition may affect the company's industry unit share position, revenue, and profitability in thecoming years.

Weak macro-economic conditions



The weak macro-economic conditions across many geographic regions are expected to impact thecompanys revenues. These conditions are expected to continue in short term which could bedetrimental to the company's growth prospects. According to IMF, the recovery in the euro zone isexpected to be weak, with the gross domestic product (GDP) growing marginally by 1.2% in 2014and is expected to grow by 1.5% in 2015. Further, emerging economies such as China are grapplingwith several problems that have been pressurizing the growth rates. Weaker macro-economicconditions have been a result of the rising inflations. The weak macro-economic conditions wouldhave an impact on the customer spending, which would affect the demand for the company's productsand services and negatively impact the financial position of the company.



TOP COMPETITORS

The following companies are the major competitors of Dell Inc.

Hewlett-Packard CompanyInternational Business Machines CorporationToshiba CorporationLenovo Group LimitedAcer Inc.Hitachi, Ltd.Samsung Electronics Co., Ltd.Sony CorporationASUSTeK Computer Inc.Apple Inc.


Dell Inc.Top Competitors

COMPANY VIEW

Dell is a private company and is not obliged to release its annual report. Hence, its company viewis not available.


Dell Inc.Company View

LOCATIONS AND SUBSIDIARIESHead OfficeDell Inc.One Dell WayRound RockTexas 78682USAP:1 800 289 3355http://www.dell.com

Other Locations and Subsidiaries

Dell Corporation LimitedDell Boomi, IncDell House801 Cassatt RoadThe BoulevardSuite 111Cain Road BracknellBerwynBerkshire RG12 1LFPennysylvania 19312GBRUSA

Dell Software - UKDell Software - USAscot House5 Polaris WayMaidenhead Office ParkAliso ViejoWestacott Way Littlewick GreenCalifornia 92656MaidenheadUSABerks SL6 3QQGBR

Dell Software - IndiaDell Software- Italy208 & 208 A Level 2Via Laurentina 455Trade Centre00142 RomaBandra Kurla ComplexITABandra EastMumbai 400 051IND

Dell Software - SingaporeDell Software - Australia8 Temasek BoulevardLevel 5, 55 Southbank Boulevard#18-01/02 Suntec Tower ThreeSouthbankSingapore 038988Victoria 3006SGPAUS


Dell Inc.Locations and Subsidiaries

Dell Software - GermanyDell Software - BrazilGertrud-Caspari-Strasse 13Av. Pedroso de Morais01109 Dresden1553 5 andarDEUPinheiros

Sao Paulo 05419-001BRA


Dell Inc.Locations and Subsidiaries

MARKETLINE | 119 FARRINGDON ROAD | LONDON, UNITED KINGDOM, EC1R 3DAT: +44 161 238 4040 | F: +44 870 134 4371 | E: [email protected] | W: www.marketline.com

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