Dell rejigs business strategy

April 03, 2012 10:57 pm | Updated 11:09 pm IST - CHENNAI:

From being just a products or services company, Dell is now gearing to deliver end-to-end IT solutions or infrastructure. Solutions and infrastructure capabilities of Dell have been gained from 21 acquisitions in the last six years.

The transformation is a sequel to change in customers' expectations, says S. Sridhar, Director (Enterprise Solutions Business), Dell India. “A decade ago, one PC was used by four people. But today, one person uses four devices (PC, laptop, smart phone and tablet). Connectivity is becoming a challenge as the usage of IT has been seeing a sea change. So Dell has to change”, says Mr. Sridhar.

Today, IT is becoming an important aspect to customers for conducting their businesses. There is only a thin line between the IT organisation and business. Customers decide on choice of technology and where it should be, whether within the premise or in cloud. This transformation has started in Dell in the last four years. So it is no more a PC company. It is an end-to-end IT solutions company which understands the needs of its customers.

In February this year, the company had created a new software division and appointed former CA, Chief Executive Officer, John Swainson to head the division. All the software companies that have been acquired in the last six years will come under this newly-formed division. Dell worldwide had created four groups namely software, enterprise solutions, end-user computing and services. “Dell is present in all its business in India outside the U.S.”, he says. Dell India, a $1.5 billion company, has nearly 27,000 employees locally. The company, which works on remote infrastructure management business through the acquisition of Perot Systems, plans to increase its business in India. Dell has grown by increasing its customer base and also by acquiring companies such as SecureWorks, EqualLogic, Compellent, RNA Networks, KACE, Force 10, Perot Systems, InSite One, Boomi, Ocarina Networks, Scalent, Exanet, Alienware, AppAssure name a few.

By acquiring all these companies, Dell has presence in the cloud, security, networking, storage, data centre, data management and infrastructure management. That places Dell in the same league as stalwarts such as HP, IBM and Cisco, says Mr. Sridhar.

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