Dell defines new growth strategy

Bangalore

October 12th, 2007

Dell has proposed a new growth strategy by simplifying IT so that its
customers can invest more on innovation and less on maintenance.

Briefing the media about the computer maker's growth strategy, Paul-Henri
Ferrand, president -APAC South, Dell Asia Pacific, said, "APAC is the
fastest growing region and Dell is growing 50 per cent YoY. With new growth
strategy we are refocusing on the consumer business, on emerging markets in SMBs
and planning to grow service business."

Kevin Kettler, VP and CTO, Dell, said, "Going forward, Dell wants to
slash costs, reduce risk, drive uniform infrastructure and manage growth for its
customers."

"Having set a Dell factory in Chennai and driving direct sales model
approach, going forward, in providing a complete solutions from desktop to data
center, we look at shifting the burden of cost to efficiency for a
customer," added Kettler.

According to Forrester Research, typically in an organization, 70 per cent of
the resource is spent on the maintenance and 30 per cent on innovation. Dell
with its new strategy looks forward to reverse this and drive more investment on
innovation, informed Kettler. For this, Dell has lined up range of products that
would be launched in next few months.

Rajan Anandan, VP and GM, Dell India, said, "We want to improve the
competitive advantage in IT by taking away the complexity and help customers to
invest more on innovation."

"The new strategy is to address the customers across all the segments
including huge corporate, consumers and SMBs," Anandan added.

Dell, a Rs 2000 crore company, which is growing 50 per cent YoY and with the
growth of 76 per cent this year, derives 85 per cent of its business from
corporate and 15 per cent from the consumers.

Responding to a query on Dell slipping down to number two position, Ferrand
said, "Dell's major focus has been on corporate and we are just rectifying
the same and moving on to address the consumer segment and we are catching upon
that."

In India, Dell over the years has invested $30 million in manufacturing
business and $150 million for R&D. The company holds 6 per cent of the
market share with 35 per cent market share in corporate in the country.