COMPANY PROFILE

Dell Inc.

REFERENCE CODE: 8E2C53C7-29AC-4848-9511-9B752758E3B4

PUBLICATION DATE: 24 Oct 2014
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Dell Inc.
TABLE OF CONTENTS

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............................................................................15
Revenue Analysis...............................................................................................16
SWOT Analysis...................................................................................................17
Top Competitors.................................................................................................23
Company View.....................................................................................................24
Locations and Subsidiaries...............................................................................25

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Dell Inc.
Company Overview

COMPANY OVERVIEW
Dell Inc. (Dell or the company) is an information technology (IT) company offering a 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 operates in Americas, Europe, the Middle East, Asia
and 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 are
not available.

KEY FACTS
Head Office

Dell Inc.
One Dell Way
Round Rock
Texas 78682
USA

Phone

1 800 289 3355

Fax
Web Address

http://www.dell.com

Financial Year End

January

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Dell Inc.
Business Description

BUSINESS DESCRIPTION
Dell Inc. (Dell or "the company") is engaged in the designing, developing, manufacturing, and
marketing a range of information technology (IT) products and services. It also offers related support
services. 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), enterprise
solutions 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 system
management and cloud compute solutions. The storage systems offered by the company include
network attached storage (NAS), storage area network (SAN), direct attached storage, and data
protection. The companys networking offerings include fixed port Ethernet switches, wireless
networking, 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 information
management software offerings.
Dell Services segment includes a range of IT and business services, including support and deployment
services, 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-centric
segments it maintained through FY2013.

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Dell Inc.
History

HISTORY
Dell Inc.s (Dell or the company) history date backs to 1984 when Michael Dell founded Dell
Computer Corporation to sell personal computer (PC) systems directly to customers. In 1985, the
company introduced the Turbo, its first PC. In 1988, Dell made its initial public offering. In the following
year, it introduced its first notebook PC. In 1990, the company opened a manufacturing center in
Limerick, Ireland to serve the European, Middle Eastern, and African markets. In 1993, Dell expanded
its global presence with new subsidiaries in Australia and Japan. In 1996, Asia Pacific manufacturing
center 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 do
Sul, Brazil to serve its customers in Latin America. In 1999, Dell acquired CovergeNet, a storage
hardware and software developer.
In 2000, the company launched PowerApp appliance servers. In the following year, the company
launched Blade server, Aximx5 handheld and 3100MP projector. In 2003, the company's name was
changed from Dell Computer Corporation to Dell Inc. In the same year Dell opened its second contact
center 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, North
Carolina. In the following year, the company expanded its operations in India, by establishing its
fourth 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, a
gaming PC manufacturer.
In 2007, Dell established a new global research and development center in Bangalore, India, for
developing next generation network servers, data-storage systems and software products. In the
same 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 entering
into retail agreements with DSG International, one of the major consumer electronics retailers in
Europe; and Tesco, an international retailer with operations in Europe and Asia. Dell acquired several
companies, including SilverBack Technologies, a service delivery platform provider; ASAP Software,
a provider of software solutions and licensing services; ZING Systems, a consumer technology and
services 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-service
management.
In 2008, Dell established its second European manufacturing plant in Poland. In the same year, Dell
acquired 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

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History

extending relationship with Gome and by launching its products at Hontu, Wuxing, Meicheng, Heng
Chang and Heyong stores. During the same year, the company acquired MessageOne, a provider
of SaaS enabled enterprise-class e-mail business continuity, compliance, archiving and disaster
recovery services. Dell and EMC extended their global alliance through 2013 and added EMC Celerra
NX4 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 in
the area of data center infrastructure. Subsequently, the company launched end-to-end Mobile
Clinical Computing Solution for accessing and organizing patient information within a secure
environment. During the same year, Dell sold its North American remanufacturing operation in
Tennessee to GENCO Supply Chain Solutions, a third-party logistics services provider. The company
partnered with data and storage networking products provider, Brocade, to offer computing, networking
and storage solutions through the Dell global sales organization. The company also partnered with
nail lacquer manufacturer, OPI, to launch a new polished laptop collection, including 26 color choices
for Dell Inspiron Mini, Inspiron and Studio laptops. Subsequently, Dell and salesforce.com, an
enterprise cloud computing company, together launched certified Dell-salesforce.com solutions
targeting small and medium businesses. In 2009, Dell signed an agreement with networking equipment
manufacturer, 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 Dell
Perot 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, an
online storage optimization solution provider, and its compression and deduplication technology. In
the same year, Dell formed a strategic alliance with Spanish broadband and telecommunications
provider, Telefonica, for a new collaboration to develop next generation communication products
and services. Subsequently, the company collaborated with Intel and launched a cloud-based learning
management 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 strategic
partnership that allowed Dell to use the Windows Azure platform appliance as a part of its Dell
Services Cloud to develop and launch next-generation cloud services. Later in 2010, Dell introduced
the Inspiron duo convertible tablet, an addition to the company's mobility product portfolio. In the
same 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 Performance
Management applications.
The company continued its acquisition spree in 2011. The company acquired SecureWorks, a
provider of information-security services; Compellent Technologies, a provider of highly-virtualized
storage solutions; Dell Financial Services Canada; CIT Vendor Finance's Dell-related assets and
sales and servicing functions in Europe; and Force10 Networks, a provider of high-performance
datacenter networking solutions. In the same year, Dell launched Dell Streak's dg version smartphone
in collaboration with T-Mobile; and also launched first public cloud offering, Dell Cloud with VMware
vCloud Datacenter Service. Subsequently, the company entered into strategic partnerships, including
a partnership with cloud security and compliance solutions provider, Qualys, to manage and re-sell
the QualysGuard suite of security and compliance services. It also partnered with planning technology

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History

provider, ikaSystems, to help payers reduce administrative costs through advanced processing
automation and business process solutions. During the same year, Dell signed a six-year IT
outsourcing contract with European travel company, TUI Travel. The company entered into a five-year
contract 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 to
provide client technology and services.
In 2012, Dell and Red Hat, a provider of open source solutions, signed an agreement to produce
Dell and Red Hat hardware/software solutions. In the same year, CAMICO, a provider of specialty
liability insurance for the accounting profession, selected Dell to deliver sales force automation
software. Subsequently, Dell entered into a strategic alliance with Ramco Systems to deliver Ramco's
enterprise resource planning (ERP)-as-a-service. During the same year, Dell Services was selected
by specialty managed healthcare service provider, MedRisk, to support applications development,
infrastructure expansion and managed security services as part of a 10-year agreement.The company
made several acquisition in 2012, including AppAssure, a provider of application protection for virtual,
physical and cloud infrastructure; Clerity Solutions, a provider of applications modernization and
re-hosting solutions and services; Make Technologies, a provider of application modernization
software and services; SonicWALL, a provider of advanced network security and data protection
solutions; and Wyse Technology, a provider of cloud client computing.
The company enhanced virtual desktop infrastructure (VDI) offerings with the launch of Dell Wyse
zero 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 launched
Smart Grid Data Management Solution, a new bundled solution designed to help electric utility
companies manage their distribution networks, minimize and potentially avoid outages. During the
same year, Dell launched XPS 10 tablet, Latitude 10 tablet and Latitude 6430u notebook. Dell
extended its cloud client computing portfolio with new solutions validated by Citrix, a server and
desktop virtualization solutions provider. Dell acquired Gale Technologies, a provider of infrastructure
automation software. Subsequently, Dell acquired Credant Technologies, a provider of data protection
solutions 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, in
partnership with global technology investment firm Silver Lake, signed an agreement to take the
company 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' electronic
health records (EHR) software on Red Hat Enterprise Linux. In the same month, Dell partnered with
Microsoft to become a global distributor, outsource manufacturer and integrator for Windows
Embedded products.
In May 2013, Dell acquired Enstratius, an enterprise cloud-management software and services
provider. In the following month, Dell, Intel and statistical software company Revolution Analytics
unveiled Big Data Innovation Center in Singapore to provide training programs, proof-of-concept

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capabilities and solution development support on big data and predictive analytic innovations for
Asia market.
In October 2013, Dell expanded its direct financing capabilities in Europe providing Dell commercial
customers access to direct Dell financing in 16 countries. In the same year, Dell completed its going
private transaction. Michael Dell and Silver Lakes Partners acquired the company in a transaction
valued at approximately $24.9 billion.
In November 2013, Aspen Valley Hospital (AVH), a community hospital located in the Colorado ski
region, started working with Dell and lifeIMAGE, a company that offers solutions to access and share
patient imaging information between patients, physicians, and healthcare institutions. The three
companies collaborated to implement a solution featuring Dell's cloud-enabled image management
and 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 customers
worldwide through the Dell Cloud Partner Program. This adds to the previously announced alliance
providing Application Development Services on Windows Azure. During the same month, the company
expanded its worldwide agreement with Accenture, a multinational management consulting, technology
services and outsourcing company, to deliver cloud and security solutions and application
management services to mid-market and select enterprise customers.
In January 2014, Framestore, a British visual effects company, partnered with Dell to expand its
business presence in North America.
Dell won a five-year services contract with Lufthansa, the largest airline in Europe, whereby Dell will
provide maintenance and support for the front-end of Lufthansa's ticketing and reservations passenger
booking 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 evolving
workforce. As part of its growing relationship with Google, Dell is developing Dell Chromebox for
meetings, an integrated solution designed to help geographically dispersed teams conduct meetings
from a large variety of devices. Subsequently, the company extended its collaboration with Red Hat
to jointly engineer OpenStack-based NFV and software-defined networking (SDN) solutions for the
telecom market segment. Dell also collaborated with Calsoft Labs, an Alten Group company, to
deliver NFV and SDN solutions that include the latest Dell OEM products.
In February 2014, Dell enhanced collaboration with Ingram Micro to expand its channel partner
program for delivering electronic medical records (EMR) solutions and services to the physician
market. In the same month, the company was selected by the US Nuclear Regulatory Commission
to build and install on-premises, federal government compliant private cloud. Subsequently, Dell
was 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 Medicare
and Medicaid coverage options, selected Dell Services and ikaSystems to position the plan to grow
in response to federal healthcare reform initiatives, in March 2014. In the same month, the company

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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 Dell
Software's portfolio of information management solutions. Subsequently, Coats, an industrial thread
and consumer textile crafts business, selected Dell Software migration solutions for worldwide move
to Office 365.
In April 2014, Dell and Red Hat launched co-engineered, enterprise-grade, private cloud solutions
based on OpenStack, the Dell Red Hat Cloud Solution, powered by Red Hat Enterprise Linux
OpenStack Platform. In the same month, Dell SecureWorks expanded its cyber threat services
portfolio with the addition of Advanced Endpoint Threat Detection (AETD) managed service.
Subsequently, Dell designed and installed a virtualized end-to-end computing environment for
BlueSun, an Ontario-based wealth management software provider.
Dell announced a reseller agreement with SDN pioneer, Big Switch Networks, to offer combined
Dell and Big Switch Big Tap Monitoring solution, a SDN-enabled fabric monitoring solution, in April
2014. In the same month, Spin VFX, a visual effects studio, selected Dell to supply IT infrastructure
for its new location in Toronto, Canada. Subsequently, Dell OEM Solutions collaborated with Emerson
Process 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 the
Dell Wyse 5000 series all-in-one thin client, the Dell Wyse quad display 7000 series thin client, and
the Dell Wyse Xenith 3 zero client for Citrix. In the same month, Dell expanded its mobility offerings
through 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 the
new Windows Server 2003 Migration Service.
In July 2014, Dell Software announced the availability of two new backup appliances and a host of
enhancements to its AppAssure backup, replication and disaster recovery software. Newly launched
solutions include the Dell DL1000, an AppAssure-powered purpose-built backup appliance optimized
for use by small- and medium-sized businesses, as well as managed service providers, and the Dell
DR2000v, a software-based virtual deduplication appliance optimized for use in remote office and
branch office (ROBO) settings. In the same month, Dell launched fully localized simplified Chinese
version of Toad for Oracle which marked the latest milestone for Dell Softwares flagship database
development and management solution.
In August 2014, Dell unveiled a range of innovative solutions across its enterprise portfolio that
optimize 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 spectrum
of 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

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

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Dell Inc.
Key Employees

KEY EMPLOYEES
Name

Job Title

Michael S Dell

Chairman of the Board, Chief Executive Officer Executive Board

Jeffrey W. Clarke

Vice Chairman, Operations, and President, Client Senior Management

Solutions

Marius A. Haas

Chief Commercial Officer and President,

Enterprise Solutions

Senior Management

Steve H Price

Senior Vice President, Human Resources

Senior Management

Karen H. Quintos

Senior Vice President and Chief Marketing

Officer

Senior Management

Richard J. Rothberg

Senior Vice President and General Counsel

Senior Management

Thomas W. Sweet

Senior Vice President and Chief Financial Officer Senior Management

John A. Swainson

President, Software

Senior Management

Suresh C. Vaswani

President, Services

Senior Management

Prasad Thrikutam

President and Global Head, Application Services Senior Management

Ganesh Murthy

Vice President and Chief Financial Officer,

Services

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Board

Senior Management

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Dell Inc.
Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Michael S Dell
Board: Executive Board
Job 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 the
company in 1984. Mr. Dell also founded MSD Capital in 1998. Mr. Dell serves as the Honorary
Member of the Foundation Board at the World Economic Forum and is the Executive Committee
Member 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 Board
at Indian School of Business in Hyderabad, India and is a Board Member at Catalyst.

Jeffrey W. Clarke
Board: Senior Management
Job 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 planning
and governance globally at the company. Mr. Clarke joined the company in 1987 as a Quality
Engineer and served in a variety of engineering and management roles. He also held various other
positions at the company, including the Director of Desktop business, and the Vice President and
General Manager of Relationship Product Group. Prior to joining the company, Mr. Clarke served
as a Reliability and Product Engineer at Motorola.

Marius A. Haas
Board: Senior Management
Job 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 was
responsible for identifying and pursuing new investments. Prior to that, Mr. Haas served as the
Senior Vice President and Worldwide General Manager at Hewlett-Packards (HP) Networking
Division, 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

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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 responsible
for overseeing global facilities at the company. Mr. Price joined Dell in 1997 and held leadership
roles, including the Vice President of HR for the global consumer business, global talent management
and Americas human resources. Prior to joining Dell, Mr. Price served for 13 years at SC Johnson
Wax in various positions, including sales, HR and a variety of other senior positions. He serves as
a Member of the Executive Advisory Board at Rawls College of Business at Texas Tech University
and on the Executive Advisory Board at Wharton School at the University of Pennsylvania.

Karen H. Quintos
Board: Senior Management
Job Title: Senior Vice President and Chief Marketing Officer
Since: 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 America
and also held various executive roles in services, contact center and supply chain management
teams at the company. Prior to joining Dell in 2000, she served as the Vice President of Global
Operations and Technology at Citigroup. Before that, Ms. Quintos served for 12 years at Merck and
held various roles in marketing, planning, operations, and supply chain.

Richard J. Rothberg
Board: Senior Management
Job Title: Senior Vice President and General Counsel
Mr. Rothberg serves as the Senior Vice President and General Counsel at Dell. He is also responsible
for global security. Mr. Rothberg joined the company in 1999 and held leadership positions in the
legal department, including the Vice President of legal supporting business in the Europe, Middle
East and Africa region; the Vice President of legal for the Asia-Pacific and Japan region; and the
Vice 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 Management
Job Title: Senior Vice President and Chief Financial Officer
Since: 2014
Age: 54

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Key Employee Biographies

Mr. Sweet has been the Senior Vice President and Chief Financial Officer at Dell since January
2014. He is also responsible for Corporate Strategy and Development. Previously, Mr. Sweet served
as 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 Finance
Vice President for overall finance activities within the corporate business, education, government
and 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 served
as the Vice President of Accounting and Finance at Telos. Mr. Sweet served for 13 years at Price
Waterhouse in a variety of roles primarily focused on providing audit and accounting services to the
technology industry.

John A. Swainson
Board: Senior Management
Job Title: President, Software
Mr. Swainson serves as the President of Software at Dell. Prior to joining Dell in 2012, he served
as 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 Chief
Executive Officer and a Director at CA Technologies from 2005 to 2009. Prior to that, he served at
IBM for more than 26 years and held various management positions, including the General Manager
of the Application Integration Middleware Division. Mr. Swainson also led the IBM worldwide software
sales 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 Management
Job Title: President, Services
Mr. Vaswani serves as the President of Services at Dell. Previously, he served as the Chairman of
Dell 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 business
and a Member of the Board of Directors at Wipro.

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Dell Inc.
Major Products and Services

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):
Notebooks
Desktops
Tablets
Thin clients
Third party software
EUC related peripherals
Enterprise solutions group (ESG):
Servers
Networking products
Storage products
ESG related peripherals
Dell Software Group:
Systems management software
Security solutions
Information management software
Dell Services
IT and business services
Support and deployment services
Infrastructure services
Cloud services
Security services
Applications and business process services

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Dell Inc.
Revenue Analysis

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

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Dell Inc.
SWOT Analysis

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

Weaknesses

Broad portfolio of products and services

Robust inorganic growth strategy
Diversified end markets and geographic
reach

Relatively weaker presence in smartphones

market

Opportunities

Threats

Positive outlook for cloud computing market

provides new revenue opportunity
Growth in data center networking market
Big Data represents potential growth
opportunity

Decline in the PC market

Intense competition
Weak macro-economic conditions

Strengths

Broad portfolio of products and services

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

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SWOT Analysis

direct-attached storage, and various backup systems. The segment also offers network-attached
storage gateways, and enterprise-class storage blade arrays for converged infrastructure offerings.
Dell Software Groups portfolio includes system management, security software offerings, and
information management software. The company also sells a range of third-party software and
peripherals, including monitors, printers, projectors, other client and enterprise peripherals, as well
as third-party software products. The company also has a robust services portfolio. The company
offers a range of configurable IT and business services, including infrastructure technology, consulting
and applications, and product-related support services.The company primarily offers three categories
of 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 tap
into high value customer base. It also facilitates strong revenue growth and enables Dell to better
sustain cyclical downturns.
Robust inorganic growth strategy
The company has undertaken a number of strategic acquisitions in the recent past to diversify its
portfolio and enhance footprint. For instance, in March 2014, the company 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 Dell Software's growing
portfolio of information management solutions. During the same year, Dell acquired portions of CIT
Vendor Finances Dell-related assets and sales and servicing functions in Europe. This enabled the
Dell Financing Services (DFS) to expand its presence in Europe. Similarly, during 2013, Dell acquired
Enstratius, an enterprise cloud-management software and services provider that delivers single and
multi-cloud management capabilities.
Earlier, in 2012, Dell acquired Credant Technologies, a provider of data protection solutions. This
acquisition strengthened the companys security solutions offerings. During the same year, Dell
acquired Gale Technologies, a provider of infrastructure automation software; SonicWALL, a provider
of advanced network security and data protection solutions; Wyse Technology, a leading provider
of cloud client computing; and Quest, an IT management software provider offering a selection of
solutions that facilitate solving IT related problems.
Dell has historically pursued acquisitions to expand its presence in the non-core and adjacent
markets. The company has been able to establish a strong position in some of these markets due
to such acquisitions. The acquisitions are aiding Dell to position itself as a provider of complete IT
products and services, and compete effectively against dominant players in these markets. Several
acquisitions made by Dell enabled it to establish its presence in some of the growth markets. These
acquisitions are expected to contribute significantly to the overall growth. They also facilitate quick
penetration into markets that are strategically important for Dell.
Diversified end markets and geographic reach

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SWOT Analysis

Dell has proactively expanded and diversified its operations and has transformed itself since its
inception. The company has focused on positioning itself as a company offering IT products and
solutions from originally being a PC brand. Accordingly, it has made several investments and gained
significant market in enterprise solutions and in offering IT services. These segments have higher
margins and are also significant growth areas. Dell has a diversified customer base as well, owing
to 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 revenue
position 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 manufacturer
in China after Samsung. According to industry estimates, its worldwide smartphone shipments grew
over 63% in the first quarter of 2014. Globally, Lenovo is ranked fourth largest manufacturer of
smartphones. It further strengthened its smartphones market presence through the acquisition of
Motorola Mobility form Google. Similarly, HP, the companys another competitor, re-entered the
smartphones 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 huge
demand, 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 coming
years. Cloud computing is a computing infrastructure model, which enables delivery of
software-as-a-service (SaaS). This reduces the upfront royalty or licensing payments, investment
in hardware and other operating expenses. As a result of its benefits, the cloud services market is
expected to grow rapidly. Dell has been focusing on strengthening is private cloud offerings through
its partner connect program. According to industry estimates, the private cloud computing market
is expected to reach $22.2 billion by 2017. Also, the spending on the public IT cloud services is
expected to reach $107 billion in 2017 from $47.4 billion in 2013, representing a CAGR of 23%
during that period.

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SWOT Analysis

The company focused on enhancing its cloud portfolio over the past few years. Dell launched its
first public cloud offering, Dell Cloud with VMware vCloud Datacenter Service in 2011. In the same
year, Dell collaborated with enterprise software company Cloudera for large scale data analysis and
modeling through open source solution. Since then the company has enhanced its cloud portfolio
through acquisition and partnerships. For instance, In April 2014, Dell and Red Hat, a provider of
open source solutions, launched co-engineered, enterprise-grade, private cloud solutions based on
OpenStack, the Dell Red Hat Cloud Solution, powered by Red Hat Enterprise Linux OpenStack
Platform.
Positive outlook of the cloud computing services and the company's significant presence in this
market 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 the
coming 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 be
primarily driven by increasing adoption of next-generation Ethernet switches, SAN products, and
network security tools for virtualized data centers. Dell is well positioned to benefit from the growing
data center networking market. The company offers a range of networking products including fixed
port Ethernet switches, wireless networking, chassis switches, PowerEdge M series blade
interconnects, server network adapters, network management and fibre channel SAN switches,
among others. The company with a broad and strong data center networking product portfolio will
benefit 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 large
repositories of corporate and external data, including unstructured information created by new
applications including medical, entertainment, energy and geophysical, social media and other web
repositories. It also refers to the new analytics and other technologies that are available to help
people do things with (and unlock the value contained within) the vast amounts of enterprise and
external data. According to industry estimates, the total amount of digital information is expected to
reach 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 create
a huge challenge for IT departments who must store and manage information. Growing unstructured
data rapidly within organizations is not suitable to be stored, managed and analyzed by traditional
IT systems. To address this, IT departments are expected to acquire new technology, build new
applications and serve insightful information. This new technology must be designed to operate at
petabyte scale - employing "scale-out" architecture. A new business application must be able to be
built rapidly and serve up information so that business users can make informed decisions and take

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SWOT Analysis

action. Hence, Big Data creates huge opportunities for organizations that can turn all of this data
into 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 several
solutions to address the Big Data, including Dell Apache Hadoop solutions, Dell Cloudera Hadoop
solution, Kitenga Analytics Suite, Cloudera Hadoop services. Dell also enhanced its focus on
addressing Big Data solutions. For instance in March 2014, the company acquired StatSoft, a provider
of advanced analytics solutions that deliver a range of data mining, predictive analytics and data
visualization capabilities. The acquisition of StatSoft bolstered Dell Software's growing portfolio of
information management solutions.
The positive outlook for the Big Data market and Dells significant presence will provide it an
opportunity 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 and
cannibalization by tablets and smartphones has led to a downfall in PC sales. According to industry
estimates, the global PC shipment volume is expected to decline from 314.2 million units in 2013 to
305.1 million units in 2017 at a CARC of 1% from 2013-17 periods. Further, the shipment volume
in the mature markets is expected to decline from 132 million units in 2013 to 120.8 million units in
2017 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 is
expected to adversely impact the company's topline.
Intense competition
The company faces intense competition in all areas of its business, including from both branded and
generic competitors. Dell competes based on its ability to offer competitive, scalable, and integrated
solutions with the most current and desired product and services features. It also competes in terms
of price, quality, brand, technology, reputation, distribution and range of products, among other
factors. 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 from
local 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 the
European and Asian netbooks markets the company faces intense competition from Asustek. Intense
competition may affect the company's industry unit share position, revenue, and profitability in the
coming years.
Weak macro-economic conditions

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SWOT Analysis

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

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Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Dell Inc.

Hewlett-Packard Company
International Business Machines Corporation
Toshiba Corporation
Lenovo Group Limited
Acer Inc.
Hitachi, Ltd.
Samsung Electronics Co., Ltd.
Sony Corporation
ASUSTeK Computer Inc.
Apple Inc.

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Company View

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

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Dell Inc.
Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office
Dell Inc.
One Dell Way
Round Rock
Texas 78682
USA
P:1 800 289 3355
http://www.dell.com

Other Locations and Subsidiaries

Dell Boomi, Inc
801 Cassatt Road
Suite 111
Berwyn
Pennysylvania 19312
USA

Dell Corporation Limited

Dell House
The Boulevard
Cain Road Bracknell
Berkshire RG12 1LF
GBR

Dell Software - US
5 Polaris Way
Aliso Viejo
California 92656
USA

Dell Software - UK
Ascot House
Maidenhead Office Park
Westacott Way Littlewick Green
Maidenhead
Berks SL6 3QQ
GBR

Dell Software- Italy

Via Laurentina 455
00142 Roma
ITA

Dell Software - India

208 & 208 A Level 2
Trade Centre
Bandra Kurla Complex
Bandra East
Mumbai 400 051
IND

Dell Software - Australia

Level 5, 55 Southbank Boulevard
Southbank
Victoria 3006
AUS

Dell Software - Singapore

8 Temasek Boulevard
#18-01/02 Suntec Tower Three
Singapore 038988
SGP

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Locations and Subsidiaries

Dell Software - Brazil

Av. Pedroso de Morais
1553 5 andar
Pinheiros
Sao Paulo 05419-001
BRA

Dell Inc.
MarketLine

Dell Software - Germany

Gertrud-Caspari-Strasse 13
01109 Dresden
DEU

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