30
Dell Inc. Company Profile Publication Date: 17 Sep 2010 www.datamonitor.com Asia Pacific Americas Europe, Middle East & Africa Level 46 245 5th Avenue 119 Farringdon Road 2 Park Street 4th Floor London Sydney, NSW 2000 New York, NY 10016 EC1R 3DA Australia USA United Kingdom t: +61 2 8705 6900 t: +1 212 686 7400 t: +44 20 7551 9000 f: +61 2 8088 7405 f: +1 212 686 2626 f: +44 20 7551 9090 e: [email protected] e: [email protected] e: [email protected]

Dell Data Monitor

Embed Size (px)

Citation preview

Page 1: Dell Data Monitor

Dell Inc.

Company Profile

Publication Date: 17 Sep 2010

www.datamonitor.com

Asia PacificAmericasEurope, Middle East & AfricaLevel 46245 5th Avenue119 Farringdon Road2 Park Street4th FloorLondonSydney, NSW 2000New York, NY 10016EC1R 3DAAustraliaUSAUnited Kingdom

t: +61 2 8705 6900t: +1 212 686 7400t: +44 20 7551 9000f: +61 2 8088 7405f: +1 212 686 2626f: +44 20 7551 9090e: [email protected]: [email protected]: [email protected]

Page 2: Dell Data Monitor

ABOUT DATAMONITOR

Datamonitor is a leading business information company specializing in industry analysis.

Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiasedexpert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive,Energy, Consumer Markets, and Financial Services.

The company also advises clients on the impact that new technology and eCommerce will have ontheir businesses. Datamonitor maintains its headquarters in London, and regional offices in NewYork, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies.

Datamonitor's premium reports are based on primary research with industry panels and consumers.We gather information on market segmentation, market growth and pricing, competitors and products.Our experts then interpret this data to produce detailed forecasts and actionable recommendations,helping you create new business opportunities and ideas.

Our series of company, industry and country profiles complements our premium products, providingtop-level information on 10,000 companies, 2,500 industries and 50 countries. While they do notcontain the highly detailed breakdowns found in premium reports, profiles give you the most importantqualitative and quantitative summary information you need - including predictions and forecasts.

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.

The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed. Please note that thefindings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faithfrom both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitorcan accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Dell Inc. Page 2© Datamonitor

Dell Inc.

Page 3: Dell Data Monitor

TABLE OF CONTENTS

Company Overview..............................................................................................4

Key Facts...............................................................................................................4

Business Description...........................................................................................5

History...................................................................................................................7

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

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

Major Products and Services............................................................................20

Revenue Analysis...............................................................................................21

SWOT Analysis...................................................................................................22

Top Competitors.................................................................................................28

Company View.....................................................................................................29

Locations and Subsidiaries...............................................................................30

Dell Inc. Page 3© Datamonitor

Dell Inc.TABLE OF CONTENTS

Page 4: Dell Data Monitor

COMPANY OVERVIEW

Dell is one of the leading technology companies, offering a broad range of products, including desktopPCs, servers, networking products, storage, mobility products, software and peripherals, and services.The company primarily operates in the US. It is headquartered in Round Rock, Texas and employs96,000 people including 1,700 temporary employees.

The company recorded revenues of $52,902 million during the financial year ended January 2010(FY2010), a decrease of 13.4% over FY2009.The operating profit of the company was $2,172 millionin FY2010, a decrease of 31.9% over FY2009. Its net profit was $1,433 million in FY2010, a decreaseof 42.2% over FY2009.

KEY FACTS

Dell Inc.Head OfficeOne Dell WayRound RockTexas 78682USA

1 512 338 4400Phone

1 512 283 6161Fax

http://www.dell.comWeb Address

52,902.0Revenue / turnover(USD Mn)

JanuaryFinancial Year End

96,000Employees

DELLNASDAQ NationalMarket Ticker

Dell Inc. Page 4© Datamonitor

Dell Inc.Company Overview

Page 5: Dell Data Monitor

BUSINESS DESCRIPTION

Dell designs, develops, manufactures, markets, sells and supports information technology systemsand services.The company offers a range of product categories, including mobility products, desktopPCs, software and peripherals, servers and networking, and storage. It provides informationtechnology (IT) and business related services including infrastructure technology, consulting andapplications, and business process services. It operates across Americas; Europe, the Middle Eastand Africa (EMEA), and Asia Pacific regions.

During the first quarter of FY2010, the company reorganized its geographic commercial divisions:Americas Commercial, EMEA Commercial, and APJ commercial, to global business units. Its globalbusiness divisions include: Large enterprise, public, small and medium business (SMB), andconsumer.

The large enterprise customer division manages the business from large global and national corporatecompanies. This division focuses on data center solutions, disruptive innovation, customer segmentspecialization, and the value chain of design to value, price to value, market to value, and sell tovalue.

The public division handles the company’s business from public customers, which include educationalinstitutions, government, health care, and law enforcement agencies, operate in communities.

The SMB division focuses on providing small and medium-sized businesses with the simplest andmost complete standards-based IT solutions and services, customized for their needs.

The consumer division markets the company’s products to customers through an on-line store atwww.dell.com, over the phone, and through retail.

Dell’s products and services are organized between enterprise solutions and client categories.Enterprise solutions include servers, storage, and related services, software and peripherals. Clientsolutions include mobility, desktop products, and also related services, software and peripherals.

Enterprise solutions

The servers and networking offerings include various servers and networking products. Its portfolioincludes standards-based PowerEdge line of servers and customized Dell server solutions for verylarge data center customers. Its also offers PowerConnect switches used to connect computers andservers in small-to-medium-sized networks.

Dell offers a portfolio of advanced storage solutions, including storage area networks,network-attached storage, direct-attached storage, disk and tape backup systems, and removabledisk backup. Some of its offerings include Dell PowerVault, Dell EqualLogic, and Dell EMC storagesystems.

Dell Inc. Page 5© Datamonitor

Dell Inc.Business Description

Page 6: Dell Data Monitor

Client solutions

The mobility portfolio includes notebooks under various lines:The Adamo, Alienware, Studio, Inspiron,Latitude, Vostro and Precision.This portfolio also includes Dell Mini 3 mobile phone, which is poweredby the Google Android operating system.

The desktop PC division offers various product lines: Allienware, Studio, OptiPlex, Inspiron, Vostroand Precision. The Alienware line of desktop computers targets customers, who needs featuresranging from multimedia capability to high performance gaming. The Studio line of compact andstylish consumer desktops includes the Hybrid, the company’s power efficient consumer desktop.The OptiPlex line is designed for business, government and institutional customers. The Inspironline is designed for mainstream PC users requiring the latest features for their productivity andentertainment needs. The Vostro line is designed to provide technology and services to address thespecific needs of small businesses. Dell Precision desktop workstations are for professional users,who expect high performance from hardware platforms optimized and certified to run sophisticatedapplications.

The related services from the company comprise infrastructure technology, consulting and applicationsand business process services. The infrastructure technology includes support services such aswarranty services and proactive maintenance offerings; and customers’ deployment; asset recovery;and recycling services. Consulting services include IT consulting, strategy consulting, enterpriseconsulting, the implementation of prepackaged software applications, and research. It offersapplications development and maintenance services such as developing and maintaining applicationsoftware; migrating and testing applications systems performing quality assurance functions oncustom applications; assessing and evaluating application software; and providing web-basedapplication services. The business process service offerings include claims processing, productengineering, payment and settlement management, life insurance policy administration, services toimprove the collection of receivables, and call center management.

The software and peripheral offerings comprise of Dell-branded printers and displays as well asthird-party peripheral products, including software titles, printers, televisions, laptop accessories,networking and wireless products, digital cameras, power adapters, scanners, and other products.It also provides third-party software products, including operating systems, business and officeapplications, anti-virus and related security software, entertainment software, and products in variousother categories.The company operates Dell Download Store, an online software store for consumersand small-and-medium-sized businesses.

In addition to these, Dell also offers various customer financial services for its business and consumercustomers in the US through Dell Financial Services (DFS), a wholly-owned subsidiary of Dell. DFSoffers a wide range of financial services, including originating, collecting and servicing customerreceivables related to the purchase of Dell products. DFS also offers private label credit financingprograms through an unrelated, nationally chartered bank, to qualified consumer and commercialcustomers and offers leases and fixed-term financing to commercial customers.

Dell Inc. Page 6© Datamonitor

Dell Inc.Business Description

Page 7: Dell Data Monitor

HISTORY

Mr. Michael Dell founded the company as Dell Computer Corporation (Dell) in 1984 to sell personalcomputer (PC) systems directly to customers. The company introduced the Turbo, its first PC, in1985. The company made its initial public offering in 1988 and introduced its first notebook PC in1989.

The company opened a manufacturing center in Limerick, Ireland in 1990 to serve the European,Middle Eastern, and African markets. In 1993, Dell expanded its global presence with new subsidiariesin Australia and Japan. Asia Pacific manufacturing center in Malaysia was started in 1996 and itstarted selling PCs through its website.

In the following year, the company introduced its workstation systems. In 1998, Dell expanded itsmanufacturing facilities in the Americas and Europe, and a year later it opened a second major USlocation in Nashville, Tennessee and a manufacturing facility in Eldorado do Sul, Brazil to serveLatin America. CovergeNet, a storage hardware and software developer, was acquired by Dell in1999.

PowerApp appliance servers were introduced in 2000. In the same year, Dell was ranked as theworldwide leader in workstation shipments. In the following year, it launched Blade server, Aximx5handheld and 3100MP projector.

The company's name was changed from Dell Computer Corporation to Dell in 2003. In the sameyear, the company opened its second contact center in Hyderabad, India. In 2004, the companyopened a Dell Enterprise Command Center (ECC) in Limerick, Ireland to provide support for serverand storage customers in the region.

Dell entered into a contract with Bombardier Recreational Products, a snowmobile and watercraftmaker, in 2005 to supply technology products and services throughout its global IT network. In thesame year, it opened its third US manufacturing location in Winston-Salem, North Carolina. The USSecurities and Exchange Commission (SEC) started an investigation into the accounting and financialreporting matters at Dell during the same year.

The company planned in 2006 to expand its operations in India by establishing its fourth Indiancustomer contact centre at Gurgaon, and first India manufacturing facility in the state of Tamil Nadu.In the same year, it acquired Alienware. Later in the year, the company recalled batteries in selectmodels of notebook computers for defects, and the Audit Committee started a parallel investigationinto the accounting and financial reporting matters. In the same year, Dell and EMC extended theirglobal alliance for five-year period to offer networked storage solutions for organizations.The companyalso established a new facility in the Edmonton Research Park housing 1,000 employees.

Dell Inc. Page 7© Datamonitor

Dell Inc.History

Page 8: Dell Data Monitor

During 2007, Dell established a new global research and development center in Bangalore, Indiafor developing next generation network servers, data-storage systems and software products. It alsoexpanded it operations in Brazil by building a new plant at Hortolandia, Sao Paulo in the same year.

Later in the same year, Dell and Bic Camera partnered on retail sales in Japan; and Dell and SAPpartnered to simplify information technology for retail operations. Subsequently, Dell partnered withGome, China's largest consumer electronics retailer, for retail sales in China.The company continuedto expand its retail presence in 2007 by entering into retail agreements with DSG International (DSGi),one of Europe's major consumer electronics retailers, and Tesco, an international retailer withoperations in Europe and Asia, to make the Dell notebook and desktop computers available in theirstores.

In 2007, the company acquired several companies including privately-held SilverBack Technologies,a service delivery platform provider for remote monitoring and management of IT infrastructure;privately-held ASAP Software, a provider of software solutions and licensing services and a subsidiaryof Corporate Express; privately-held ZING Systems, a consumer technology and services company;EqualLogic, a provider of high-performance iSCSI storage area network (SAN) solutions; andprivately-held Everdream, a provider of Software as a Service (SaaS) solutions for remote-servicemanagement.

Dell launched AX4-5, an entry-level SAN solution in 2008. This solution was designed to meet thegrowing storage needs of small and medium-sized organizations. The company established itssecond European manufacturing plant located in Poland. Subsequently, it completed the acquisitionof The Networked Storage, an IT consultancy specializing in IT data storage solutions.

Dell entered into a partnership with Egenera to offer fully integrated solution for dynamic data centerenvironments. Subsequently, Dell expanded its retail presence in China by adding Suning as retailpartner, extending relationship with Gome and launched its products at Hontu, Wuxing, Meicheng,Heng Chang and Heyong stores. Also in 2008, the company completed a $155 million acquisitionof MessageOne, one of the industry leaders in SaaS enabled enterprise-class e-mail businesscontinuity, compliance, archiving and disaster recovery services.

Dell, Intel and Motion Computing launched a new service to assess, design and validate the qualityand coverage of wireless networks to support health care information flow. During the end of 2008,Dell and EMC extended their global alliance through 2013 and added EMC Celerra NX4 storagesystem to the portfolio of Dell EMC networked storage systems.

In January 2009, Dell planned to migrate the production of computer systems for customers inEurope, the Middle East and Africa (EMEA) from Limerick to its Polish facility and third-partymanufacturing partners. Subsequently, the company acquired Microsoft IT consulting and solutionssegments of Allin. In the same month, Cisco and Dell collaborated to offer next-generation IT solutionsin the area of data center infrastructure. According to the agreement, Dell added Cisco’s Nexus 5020switches that support both 10 Gigabit Ethernet and Fibre Channel over Ethernet (FCoE) to its DellPowerEdge server and Dell EqualLogic, PowerVault, and Dell/EMC storage solutions.

Dell Inc. Page 8© Datamonitor

Dell Inc.History

Page 9: Dell Data Monitor

In March 2009, Dell launched Adamo brand laptop. In the next month, the company launchedend-to-end Mobile Clinical Computing Solution for accessing and organizing patient informationwithin a secure environment; and entered into a strategic alliance with Perot Systems to providefully-integrated IT solutions to provide virtualized desktop, storage and server solutions for hospitals,health systems and physician practices, virtualized on premises or hosted either off-site or in secure,private clouds.

In May 2009, the company introduced 10.1 inch netbook, Latitude 2100, designed for education.Subsequently, the company expanded its enterprise technology portfolio through the launch offlexible and modular virtualization and data center consulting services, business-ready virtualizationconfigurations, new Dell PowerEdge servers and EqualLogic PS4000 storage array. In the followingmonth, it entered into a five-year outsourcing agreement with WellPoint, one of the US health benefitscompanies, for field support and help desk services through Dell Global Services.

During July 2009, the company sold its North American remanufacturing operation in Tennessee toGENCO Supply Chain Solutions, a US based third-party logistics services provider. In September2009, the company partnered with Brocade to offer customers computing, networking and storagesolutions through the Dell global sales organization.The two companies also planned to collaborateon future development around the management and virtualization of next-generation data centers.Subsequently, the company planned to close its customer contact facility in Twin Falls, Idaho. In thesame month, Dell and Perot Systems, a provider of information technology services and businesssolutions, entered a definitive agreement for the company to acquire Perot Systems for approximately$3.9 billion.

In October 2009, the company partnered with OPI to launch a new polished laptop collection, including26 color choices for Dell Inspiron Mini, Inspiron and Studio laptops. Dell and salesforce.com, theenterprise cloud computing company, together launched certified Dell-salesforce.com solutions,joint offerings for small and medium businesses, that offer customer relationship managementapplications through the cloud. Dell and Juniper Networks signed an agreement to offer networkingsolutions under Dell’s PowerConnect brand that enable customers to deploy a common networkmanagement platform and network operating system.

In November 2009, the company planned to enter smart phone business with Dell Mini 3 smartphones and to distribute them through China Mobile and Claro. The company completed theacquisition of Perot Systems and business was named as Dell Perot Systems.

During February 2010, the company announced relationship with INTEGRITY Global Security thatenables Dell the exclusive provider of the INTEGRITY separation kernel for general purpose securecomputing to government agencies. Subsequently, the company agreed to acquire KACE, a systemsmanagement appliance company. The company also completed the purchase of Exanet’s assetsin Israel.

The company formed a strategic alliance with Telefonica for a new collaboration to develop nextgeneration communication products and services in April 2010. In the following month, Dell incollaboration with Intel launched a cloud-based learning management platform. And as the new

Dell Inc. Page 9© Datamonitor

Dell Inc.History

Page 10: Dell Data Monitor

hosting provider for Moodlerooms, a managed, open-source learning management system servicesprovider, Dell will provide education organizations with cloud-based curriculum.

In June 2010, Dell teamed with OnLive, a provider of on-demand, instant play video games, to launchthe OnLive Game Service. Opera Software, a developer of cross-platform web browser technology,selected Dell to simplify its data center, selecting Dell EqualLogic Storage and Dell PowerEdgeBlade Servers. In the following month, the company signed an agreement to acquire Scalent, aprivate company that provides software for data center infrastructure, and planned to integrateScalent technology into its Advanced Infrastructure Manager solution. Dell and Microsoft formed astrategic partnership through which Dell plans to use the Windows Azure platform appliance as apart of its Dell Services Cloud to develop and launch next-generation cloud services. Subsequently,the company signed an agreement to acquire Ocarina Networks and its storage optimizationtechnology including compression and deduplication.

The company agreed to acquire 3PAR, a global provider of virtualized storage solutions, for $1.15billion during August 2010. After a series of revised biddings regarding the acquisition of 3PAR, Delldeclined to revise the bid and ended its discussions in September 2010.

Dell Inc. Page 10© Datamonitor

Dell Inc.History

Page 11: Dell Data Monitor

KEY EMPLOYEES

CompensationBoardJob TitleName

963623 USDExecutive BoardChairman and Chief ExecutiveOfficer

Michael S Dell

704444 USDNon Executive BoardDirectorJames W Breyer

276942 USDNon Executive BoardDirectorDonald J Carty

291942 USDNon Executive BoardDirectorWilliam H Gray

292173 USDNon Executive BoardDirectorJudy C Lewent

276942 USDNon Executive BoardDirectorKlaus S Luft

276942 USDNon Executive BoardDirectorThomas W Luce

276942 USDNon Executive BoardDirectorAlex J Mandl

452247 USDNon Executive BoardDirectorShantanu Narayen

276942 USDNon Executive BoardDirectorSamuel A Nunn

450301 USDNon Executive BoardDirectorRoss Perot

17258085 USDSenior ManagementPresident, Dell ServicesPeter A Altabef

8393132 USDSenior ManagementPresident, Communication SolutionsRonald G Garriques

Senior ManagementPresident, PublicPaul D Bell

8166259 USDSenior ManagementPresident, Consumer, Small andMedium Business

Stephen J Felice

Senior ManagementPresident, Large EnterpriseStephen F Schuckenbrock

5120111 USDSenior ManagementSenior Vice President and ChiefFinancial Officer

Brian T Gladden

Senior ManagementSenior Vice President, EnterpriseProduct Group

Bradley R Anderson

Senior ManagementSenior Vice President and ChiefMarketing Officer

Erin M Nelson

Senior ManagementSenior Vice President HumanResources

Steve H Price

Senior ManagementSenior Vice President and GeneralCounsel

Lawrence P Tu

Senior ManagementVice Chairman, Operations andTechnology

Jeffrey W Clarke

Senior ManagementSenior Vice President Dell.comRonald V Rose

Senior ManagementSenior Vice President CorporateStrategy

David L Johnson

Dell Inc. Page 11© Datamonitor

Dell Inc.Key Employees

Page 12: Dell Data Monitor

KEY EMPLOYEE BIOGRAPHIES

Michael S Dell

Board: Executive BoardJob Title: Chairman and Chief Executive OfficerSince: 2007Age: 45

Mr. Dell has been the Chairman and CEO at Dell since 2007. He has been the Chairman at Dellsince he founded the company in 1984. Mr. Dell served as the CEO at Dell from 1984 to 2004 andresumed that role in 2007. He serves on the foundation board at the World Economic Forum, theexecutive committee of the international business council and is a member of the US businesscouncil. He also serves on the US President's council of advisors on science and technology andthe governing board of the Indian School of Business in Hyderabad, India.

James W Breyer

Board: Non Executive BoardJob Title: DirectorSince: 2009Age: 48

Mr. Breyer has been a Director at Dell since April 2009. He has been an investor in over thirtyconsumer internet, media, and technology companies that have completed public offerings orsuccessful mergers. Prior to his joining Accel in 1985, Mr. Breyer worked as a Management Consultantat McKinsey and in product marketing and management at Apple and Hewlett Packard.

Donald J Carty

Board: Non Executive BoardJob Title: DirectorSince: 1992Age: 63

Mr. Carty has been a Director at Dell since 1992. He also served the company as the Vice Chairmanand Chief Financial Officer from 2007 to 2008. Before joining Dell, Mr. Carty retired in 2003 as theChairman and CEO at AMR and American Airlines. He had served in that position since 1998. Priorto that, Mr. Carty served as the President at AMR Airline Group and American Airlines.

Between 1989 and 1995, Mr. Carty was the Executive Vice President, Finance and Planning at AMRand American Airlines. He had been American's Senior Vice President and Controller before leaving

Dell Inc. Page 12© Datamonitor

Dell Inc.Key Employee Biographies

Page 13: Dell Data Monitor

the airline in 1985 to become the President and CEO at CP Air in Canada. In 1987, Mr. Carty returnedto American and was elected the Senior Vice President, airline planning. Before joining American,he spent seven years in various management positions with Celanese Canada, Air Canada, andthe Canadian Pacific Railway.

William H Gray

Board: Non Executive BoardJob Title: DirectorSince: 2000Age: 68

Mr. Gray has been a Director at Dell since 2000. He was the former President and CEO at UnitedNegro College Fund from 1991 to 2004. Mr. Gray was the senior minister at the Bright Hope BaptistChurch in Philadelphia from 1972. From 1979 to 1991, he served as a US Congressman fromPennsylvania.

Judy C Lewent

Board: Non Executive BoardJob Title: DirectorSince: 2001Age: 61

Ms. Lewent has been a Director at Dell since 2001. Until 2007, she served as the Executive VicePresident and Chief Financial Officer and President, Human Health Asia at Merck & Co. Ms. Lewentalso held various other financial and management positions since joining Merck in 1980. She is alsoa Director at Motorola and Thermo Fisher Scientific. Ms. Lewent is a Trustee and the Chairpersonof the audit committee of the Rockefeller Family Trust, a life member of the Massachusetts Instituteof Technology and a member of the American Academy of Arts and Sciences.

Klaus S Luft

Board: Non Executive BoardJob Title: DirectorSince: 1995Age: 68

Mr. Luft has been a Director at Dell since 1995. Since 1990, he has served as the Vice Chairmanand International Advisor at Goldman Sachs Europe. From 1986 to 1989, Mr. Luft was the CEO atNixdorf Computer, where he served for more than 17 years in a variety of executive positions inmarketing, manufacturing and finance. He is the Honorary Consul of the Republic of Estonia in theState of Bavaria.

Dell Inc. Page 13© Datamonitor

Dell Inc.Key Employee Biographies

Page 14: Dell Data Monitor

Thomas W Luce

Board: Non Executive BoardJob Title: DirectorSince: 2006Age: 69

Mr. Luce has been a Director at Dell since 2006. He is also the President and CEO of the NationalMath and Science Initiative. Mr. Luce was the United States Assistant Secretary of Education forPlanning, Evaluation and Policy Development from 2005 until his resignation 2006. From 1997 until2005, he was a partner of the business advisory firm Luce & Williams. Before then, Mr. Luce was afounding partner and managing partner of the law firm at Hughes & Luce from 1973 until his retirementfrom the firm in 1997, and was Of Counsel with that law firm until 2003. From 1991 to 1992, Mr.Luce was the Chairman and CEO at First Southwest, a Dallas-based investment firm that is a memberof the National Association of Securities Dealers.

Alex J Mandl

Board: Non Executive BoardJob Title: DirectorSince: 1997Age: 66

Mr. Mandl has been a Director at Dell since 1997. From 2006 to 2007, he served as the ExecutiveChairman at Gemalto. Before 2006, Mr. Mandl was the President, CEO and a member of the Boardof Directors at Gemplus since 2002. He has served as Principal at ASM Investments, a companyfocusing on early stage funding in the technology sector since 2001. From 1996 to 2001, Mr. Mandlwas the Chairman and CEO at Teligent.

Mr. Mandl was AT&T's President and Chief Operating Officer from 1994 to 1996, and its ExecutiveVice President and Chief Financial Officer from 1991 to 1993. From 1988 to 1991, he was theChairman and CEO at Sea- Land Services.

Shantanu Narayen

Board: Non Executive BoardJob Title: DirectorSince: 2009Age: 47

Mr. Narayen has been a Director at Dell since 2009. He is the President and CEO at Adobe Systems.Prior to his appointment as the CEO in 2007, Mr. Narayen was Adobe’s President and Chief OperatingOfficer. Previously, he held key product research and development positions within Adobe, includingthe Executive Vice President of worldwide products, Senior Vice President of worldwide product

Dell Inc. Page 14© Datamonitor

Dell Inc.Key Employee Biographies

Page 15: Dell Data Monitor

development, and Vice President And General Manager of the engineering technology group. Beforejoining Adobe in 1998, Mr. Narayen was a Co-founder of Pictra. Prior to that, he served as theDirector of desktop and collaboration products at Silicon Graphics and held various seniormanagement positions at Apple Computer.

Samuel A Nunn

Board: Non Executive BoardJob Title: DirectorSince: 1999Age: 71

Mr. Nunn has been a Director at Dell since 1999. He retired from the law firm King & Spalding in2003. From 1972 through 1996, Mr. Nunn served as a US Senator from Georgia. During his tenureas Senator, he served as the Chairman of the Senate Armed Services Committee and the PermanentSubcommittee on Investigations. Mr. Nunn also served on the Intelligence and Small BusinessCommittees.

Ross Perot

Board: Non Executive BoardJob Title: DirectorSince: 2009Age: 51

Mr. Perot has been a Director at Dell since 2009. He is the Chairman at Hillwood, which he foundedin 1988. He is also a founder of Perot Systems and served on its board of directors beginning in1988. Mr. Perot served as the Chairman of the board from 2004 until the company was acquired byDell in 2009. After graduating from Vanderbilt University, Mr. Perot served in the United States AirForce for eight and half years. He then served as the Chairman of the Air Force Memorial Foundation.From 2002-2003, Mr. Perot served as the Chairman of the Governor’s Task Force for EconomicGrowth.

Peter A Altabef

Board: Senior ManagementJob Title: President, Dell ServicesSince: 2009Age: 50

Mr. Altabef has been the President at Dell Services since 2009. He joined Dell with Dell’s acquisitionof Perot Systems in November 2009. From 2004 to November 2009, he was the President and CEOat Perot Systems. Before joining Perot Systems in 1993, Mr. Altabef was a Partner in the law firm

Dell Inc. Page 15© Datamonitor

Dell Inc.Key Employee Biographies

Page 16: Dell Data Monitor

at Hughes & Luce. He previously practiced law in New York and served as a law clerk to the UnitedStates Court of Appeals for the Fifth Circuit.

Ronald G Garriques

Board: Senior ManagementJob Title: President, Communication SolutionsSince: 2009Age: 46

Mr. Garriques has been the President, Communication Solutions at Dell since 2009. He joined Dellin 2007 as the President, Global Consumer Group. Prior to joining Dell, Mr. Garriques served invarious leadership roles at Motorola. He was most recently responsible for the Mobile Devicesdivision. Mr. Garriques also was the Senior Vice President and General Manager of the Europe,Middle East and Africa region for personal communications services division. He also served as theSenior Vice President and General Manager of worldwide product line management at PCS. Healso held management positions at AT&T Network Systems, Lucent Technologies and PhilipsConsumer Communications.

Paul D Bell

Board: Senior ManagementJob Title: President, PublicSince: 2009Age: 49

Mr. Bell has been the President, Public at Dell since January 2009. Prior to current appointment, hewas the Senior Vice President and President for Americas at Dell. Prior to that role, Mr. Bell servedas the Senior Vice President of Europe, Middle East and Africa. Previously, he was the Senior VicePresident and General Manager of the Worldwide Home and Small Business Group. Before joiningDell in 1996, Mr. Bell was a consultant with Bain and Company.

Stephen J Felice

Board: Senior ManagementJob Title: President, Consumer, Small and Medium BusinessSince: 2009Age: 52

Mr. Felice has been the President, Small and Medium Business at Dell since January 2009. Priorto current position, he was the Senior Vice President and President of Dell Asia-Pacific/Japanoperations. Prior to that, Mr. Felice was the Vice President, Corporate Business Group, Dell Americas.Previously, he held various executive roles in Dell's sales and consulting services organizations.

Dell Inc. Page 16© Datamonitor

Dell Inc.Key Employee Biographies

Page 17: Dell Data Monitor

Mr. Felice joined Dell in 1999 from DecisionOne, where he served as the CEO and President. Hewas also with worked for Bell Atlantic and served as the Vice President of planning and development,with Bell Atlantic Customer Services. Mr. Felice spent five years at Shell Oil in Houston.

Stephen F Schuckenbrock

Board: Senior ManagementJob Title: President, Large EnterpriseSince: 2009Age: 49

Mr. Schuckenbrock has been the President, Large Enterprise at Dell since January 2009. Prior tocurrent appointment, he was the Senior Vice President and President, Global Services, and ChiefInformation Officer at Dell. Prior to joining Dell, Mr. Schuckenbrock served as the Co-Chief OperatingOfficer and Executive Vice President of global sales and services at EDS. Before joining EDS in2003, he was Chief Operating Officer at The Feld Group, an IT consulting organization. Mr.Schuckenbrock was the Chief Information Officer at PepsiCo from 1998 to 2000. He was also theglobal Chief Information Officer at Frito-Lay from 1995 to 1998.

Brian T Gladden

Board: Senior ManagementJob Title: Senior Vice President and Chief Financial OfficerSince: 2008Age: 45

Mr. Gladden has been the Senior Vice President and Chief Financial Officer at Dell since 2008. Priorto joining Dell in 2008, he was the President and CEO at SABIC Innovative Plastics Holding. Priorto joining SABIC Innovative Plastics, Mr. Gladden was with General Electric (GE) for nearly 20 yearsin various financial and management leadership roles. He served as the Vice President and GeneralManager of GE Plastics' resin business; Chief Financial Officer at GE Plastics; and Vice Presidentand Chief Financial Officer at GE Medical Systems Healthcare IT business during his career withthe company. He was named a GE corporate officer in 2002 while Chief Financial Officer at GEPlastics and had formerly served on GE's corporate audit staff for five years.

Bradley R Anderson

Board: Senior ManagementJob Title: Senior Vice President, Enterprise Product GroupSince: 2009Age: 50

Mr. Anderson has been the Senior Vice President, Enterprise Product Group at Dell since January2009. Prior to current position, he was the Senior Vice President of Business Product Group. Prior

Dell Inc. Page 17© Datamonitor

Dell Inc.Key Employee Biographies

Page 18: Dell Data Monitor

to joining Dell in 2005, Mr. Anderson was the Senior Vice President and General Manager at HewlettPackard's industry standard servers business. Previously, he was the Vice President of serverstorage and infrastructure at HP. Before joining HP in 1996, Mr. Anderson held top managementpositions at Cray Research in executive staff, field marketing, sales, finance and corporate marketing.

Erin M Nelson

Board: Senior ManagementJob Title: Senior Vice President and Chief Marketing OfficerSince: 2009Age: 40

Ms. Nelson has been the Senior Vice President and Chief Marketing Officer at Dell since January2009. Before becoming Chief Marketing Officer, she spent three years in Europe, most recently asthe Vice President of marketing for Dell’s business in Europe, the Middle East and Africa. Sincejoining Dell in 1999, Ms. Nelson has held leadership positions in US consumer marketing, US publicsales, EMEA home and small-business marketing, as well as eBusiness. Prior to joining Dell, sheheld positions in brand management at Procter & Gamble, corporate strategy at PepsiCo, and as amanagement consultant at A.T. Kearney.

Steve H Price

Board: Senior ManagementJob Title: Senior Vice President Human Resources

Mr. Price is the Senior Vice President, Human Resources at Dell. He has been with Dell for morethan 13 years and has served in leadership roles throughout the HR organization, including the VicePresident of HR for the global Consumer business, Global Talent Management and Americas HumanResources. Prior to joining Dell in 1997, Mr. Price spent 13 years at SC Johnson Wax. Having startedhis career at SC Johnson Wax in sales, he later moved into HR, where he held a variety of seniorpositions.

Lawrence P Tu

Board: Senior ManagementJob Title: Senior Vice President and General CounselSince: 2004Age: 55

Mr. Tu has been the Senior Vice President and General Counsel at Dell since 2004. Previously, hewas the Executive Vice President and General Counsel at NBC Universal. Mr. Tu was a partner atO'Melveny & Myers, including five years as managing partner at the firm's Hong Kong office. Hewas also the General Counsel Asia Pacific for Goldman Sachs, an attorney for the US StateDepartment and a clerk for US Supreme Court Justice Thurgood Marshall.

Dell Inc. Page 18© Datamonitor

Dell Inc.Key Employee Biographies

Page 19: Dell Data Monitor

Jeffrey W Clarke

Board: Senior ManagementJob Title: Vice Chairman, Operations and TechnologySince: 2009Age: 47

Mr. Clarke has been the Vice Chairman, Operations and Technology at Dell since January 2009.He joined Dell in 1987 as a Quality Engineer and has served in a variety of engineering andmanagement roles. Mr. Clarke moved into product development in 1989 and was promoted toDirector of desktop development in 1995. In 1997, he was responsible for launching Dell's PrecisionWorkstation product line. Subsequently, Mr. Clarke was the Vice President and General Manager,Relationship Product Group. Prior to joining Dell, he was a reliability and product engineer at Motorola.

Dell Inc. Page 19© Datamonitor

Dell Inc.Key Employee Biographies

Page 20: Dell Data Monitor

MAJOR PRODUCTS AND SERVICES

Dell designs, develops, manufactures, markets, sells and supports various information technology systems and services. The company's key products and services include the following:

Products:

Desktop personal computers Workstations MP3 players Notebook PCs Software Printers Displays Networking products Storage devices Servers Smartphones

Services:Infrastructure technology servicesConsulting and application services Business process services Assessment, design and implementation services Deployment services Training and certification services Support services Managed lifecycle services Financial services

Brands:

Alienware Dimension Inspiron Latitude OptiPlex Precision Vostro XPS PowerEdge PowerConnect

Dell Inc. Page 20© Datamonitor

Dell Inc.Major Products and Services

Page 21: Dell Data Monitor

REVENUE ANALYSIS

Dell

The company recorded revenues of $52,902 million during the financial year ended January 2010(FY2010), a decrease of 13.4% over FY2009. In FY2009, the US, the company's largest geographicmarket, accounted for 51.7% of the total revenues.

During the first quarter of FY2010, the company reorganized its geographic commercial divisions toglobal business units. Dell generates revenues through four global business divisions: Large enterprise(27% of the total revenues in FY2010), public (27.4%), small and medium business (22.8%), andconsumer (22.8%).

Revenues by Division

In FY2010, the large enterprise division recorded revenues of $14,285 million, a decrease of 20.7%over FY2009.

The public division recorded revenues of $14,484 million in FY2010, a decrease of 5.6% over FY2009.

The small and medium business division recorded revenues of $12,079 million in FY2010, a decreaseof 18.9% over FY2009.

The consumer division recorded revenues of $12,054 million in FY2010, a decrease of 6.3% overFY2009.

Revenues by Geography

The US, Dell's largest geographical market, accounted for 53% of the total revenues in FY2010.Revenues from the US reached $28,053 million in 2010, a decrease of 11.1% over FY2009.

Foreign countries accounted for 47% of the total revenues in FY2010. Revenues from foreigncountries reached $24,849 million in 2010, a decrease of 15.9% over FY2009.

Dell Inc. Page 21© Datamonitor

Dell Inc.Revenue Analysis

Page 22: Dell Data Monitor

SWOT ANALYSIS

Dell is one of the leading providers IT systems in the world. The company offers a broad range ofproducts, including desktop PCs, servers and networking products, storage solutions, mobilityproducts, software and peripherals, and related services. Dell has a strong brand value and is amongthe top 100 global brands. Strong brand value enhances the company’s market penetration capabilityand provides cross selling opportunities. However, intense completion in the technology industrymay affect the company’s profitability in coming years.

WeaknessesStrengths

Violation of lawsStrong brand valueRelatively weak R&D capabilitiesRobust market position

Diversified customer baseDell Perot Systems’ position in healthcarebusiness

ThreatsOpportunities

Intense competitionEntry into smartphone businessProduct defectsGrowing PC market

Positive outlook for global IT spendingIncreasing adoption of cloud computingservices

Strengths

Strong brand value

Dell enjoys a strong brand image supporting its growth. The company is among the top 100 brandsin the world, with a brand value of $10,291 million, according to Interbrand annual ranking 2009. Itwas ranked 35 in the list of top 100 brands. Dell was ranked ahead of some of its competitors suchas Acer, Toshiba and Lenovo.

Moreover since FY2008, Dell started offering products through indirect sales, such as leading retailchain stores. It offers select products through strategic relationships with a various major retailerslike Wal-Mart and Best Buy in the US;Wal-Mart and Pontofrio in Latin America; Carphone Warehouse,Carrefour, Tesco and DSGi in EMEA region; and Gome, HiMart, Courts and Bic Camera in AsiaPacific region. With its entry into indirect sales channel model, Dell’s visibility among the individualcustomer in the retail space is increasing, which further increases its brand value.

Dell Inc. Page 22© Datamonitor

Dell Inc.SWOT Analysis

Page 23: Dell Data Monitor

Dell's brand image generates a large percentage of intangible earnings. Strong brand image makesDell a preferred hardware provider over its competitors. In addition, strong brand image promotesgreater trust in the company's product and services, which boosts the demand for them.

Robust market position

Dell has a robust market presence in IT systems market. Despite losing market share to other playersin the recent past, Dell continues to remain a strong player in the IT systems market. Dell was thesecond largest player in the in the worldwide PC market with approximately 13.1% share, with thevolume shipments of 38.4 million in 2009. In the US, the company is the second leading player inPC market with approximately 11.9% market share of the volume shipments in 2009. Moreover, thecompany achieved the number one position in the rapidly developing Indian PC market, surpassingHewlett-Packard during the second quarter of 2010 with a market share of 15.2%.

It is also a leading player in the computer peripheral equipment and software wholesaler market.According to the industry sources, the company is also the fourth largest player in the worldwidedisk storage systems market with a market share of over 12.3% during the second quarter of 2010.The company is the leading player in the NAS domain with share of 32.9%. Further, Dell is the thirdlargest player in the worldwide servers' segment with a market share of approximately 15.3%.

Dell's strong market position in the IT systems market provides it with a competitive advantage.

Diversified customer base

Dell serves a diversified customer base globally.The company offers a range of IT products includingmobility products, desktop PCs, software and peripherals, servers and networking, and storage toa wide customer base, which ranges from large scale businesses to small organizations of varioussectors. It provides customized products to all size of clients according to their needs.The company’scustomers are categorized as: large enterprise, public, small and medium business (SMB), andconsumer.

The company’s large enterprise customers include the business from large global and nationalcorporate companies. The public customers comprises of educational institutions, government,health care, and law enforcement agencies, operate in communities. For SMBs, the company offersthe simplest and most complete standards-based IT solutions and services, customized for theirneeds. For consumers, the company markets products through an on-line store at www.dell.com,over the phone, and through retail.Wide range of customer base provides the company with diversifiedrevenue streams. During FY2010, the company generated 27% of the total revenues from largeenterprise, 27.4% from public clients, 22.8% from SMBs, and 22.8% from consumers.

Diversified revenues from wide range of customers shields the company against demand fluctuationsin a specific market by dispersing its business risks.

Dell Perot Systems’ position in healthcare business

Dell Inc. Page 23© Datamonitor

Dell Inc.SWOT Analysis

Page 24: Dell Data Monitor

Dell Perot Systems is a leading provider of healthcare IT services in the US. The company providesservices to more than 1,000 hospitals and five of the top 25 systems in the US. It serves about 70health insurance organizations and more than 30,000 doctors as members of physician groups. Itis a leading systems integrator of Tier I clinical systems.

The company's healthcare business was also recognized by several agencies for its capabilities. InMay 2010, it was ranked number one for the fourth consecutive year in Annual Datamonitor BlackBook of Outsourcing 2009 survey of Healthcare ITO vendors. The survey positioned Dell PerotSystems as the highest rated overall vendor in the areas of applications development andmaintenance, revenue cycle management, and clinical data initiatives.

Dell Perot Systems strong position in healthcare IT segment provides a competitive advantage tothe company and allows it to achieve new contracts.

Weaknesses

Violation of laws

Dell was involved in the violation of federal securities laws and is paying the civil penalties. A complaintwas filed against the company alleging that Dell and some of its staff have violated the federal laws.The company also faced investigations from the US Securities and Exchange Commission (SEC)regarding these violations including the antifraud provisions of federal securities laws, relating tocertain accounting and financial reporting matters during 2001–06.The company also faced allegationsregarding certain aspects of its commercial relationship with Intel.

As a part of this, the company reached a settlement with SEC resolving the investigations duringJune 2010. Under its settlement, the company has consented to a permanent injunction againstfuture violations of such federal securities laws and SEC rules.The company also agreed to performcertain undertakings, including retaining an independent consultant, to enhance its disclosureprocesses, practices and controls. According to the settlement, the company is required to pay acivil monetary penalty of $100 million. Also Mr. Michael S Dell, the Chairman and CEO of Dell, hasto pay a penalty of $4 million regarding the alleged failure to provide adequate disclosures withrespect to the company’s commercial relationship with Intel prior to Fiscal 2008.

Violation of laws, investigations and paying penalties impacts the company’s reputation and affectsthe investor’s confidence.

Relatively weak R&D capabilities

Dell has relatively weak research, development and engineering (R&D) capabilities compared to itsmajor competitors. The company employs a collaborative approach to product design anddevelopment, where it works with a network of technology companies. It uses original designmanufacturing (ODM) partnerships and manufacturing outsourcing relationships for manufacturing.

Dell Inc. Page 24© Datamonitor

Dell Inc.SWOT Analysis

Page 25: Dell Data Monitor

However, it undertakes essential manufacturing processes including assembly, software installation,functional testing and quality control. As a result, the company’s R&D spending has been lower thanits competitors. Dell’s R&D expenses were $624 million, $663 million, and $610 million, respectively,during FY2010, FY2009 and FY2008. By contrast, its main competitors such as HP reported R&Dspending of $2,819 million, $3,543 million, and $3,611 million, respectively, in FY2009, FY2008, andFY2007; and IBM reported R&D spending of $5,820 million, $6,337 million and $6,153 million,respectively, in FY2009, FY2008 and FY2007. Furthermore, the company’s R&D spending aspercentage of total revenues was 1.2% in FY2010, compared to HP (3%), and IBM (6.1%).

As a result, the company had lesser patents than its competitors. At the end of FY2010, it had aworldwide portfolio of 2,577 patents and additional 2,418 patent applications pending. By contrast,HP had a worldwide portfolio of over 33,000 patents, and IBM achieved over 4,914 patents only in2009.

Although, the company’s business model was not highly dependent on R&D over years, changingindustry dynamics with increasing competition and commoditization of PC market call for differentiationthough innovation. Further more, the company’s relatively weak R&D makes it depend on licensesfor third-party patents, and it may affect its ability to introduce innovative products.

Dell’s relatively weak R&D capabilities affect its competitiveness as well as make it dependent onthird parties for patent licenses.

Opportunities

Entry into smartphone business

Dell has entered into the smartphone business with the launch of Dell Mini 3 smart phones inNovember 2009. The company also partnered with China Mobile, the largest telecommunicationscompany in the world with more than 500 million customers; and Claro, which serves more than 42million people in Brazil as part of the America Movil network, to distribute its smartphone offerings.Further, the company also formed smartphone agreement with AT&T as a carrier to offer Dell Mini3 smart phone in January 2010. The company’s entry into the smartphone business demonstratesits continued expansion into mobile internet products.

Moreover, the smart phone market is projected to grow significantly, poising the growth opportunitiesto Dell. According to the industry sources, the smartphone market is forecast to grow at a compoundedannual rate (CAGR) of 32% between 2010 and 2014. More than 50% of this growth in handsets isforecast to come from the developing markets of Asia-Pacific, including China and India, and Centraland Latin American states. Also, the smartphones are expected to represent 26% of all handsets in2014, compared to 14% in 2009.

The company’s expansion into growing smartphone business will provide it with additional revenues.

Dell Inc. Page 25© Datamonitor

Dell Inc.SWOT Analysis

Page 26: Dell Data Monitor

Growing PC market

The global PC market is expected to grow in the coming years. According to the industry sources,the global PC market is forecast to record a growth of 20% in terms of volume in 2010, comparedto 2009. The demand is being driven by increased customer adoption and the growth of netbooks.The netbook market is expected to record 25% growth in shipments in 2010, over 2009.

In addition, the Asia Pacific PC market is expected to grow significantly, both China and Indianmarkets driving the demand.The PC shipments in China and India are forecast to grow around 20%during 2010.

The company is the second largest player in the worldwide PC market, offering desktop PCs andnotebooks under various brands: Allienware, Studio, OptiPlex, Inspiron, Vostro and Precision. Further,the company is investing in the emerging BRIC regions including Brazil, Russia, India, and Chinato design and manufacture products and support its customers.

Growing PC demand and the company’s focus on emerging markets ensures steady revenues tothe company from PC segment.

Positive outlook for global IT spending

The global information technology (IT) spending is expected to grow in the near future. A steadyimprovement in the macroeconomic environment in 2010 will enable modest growth in overall ITspending. According to Datamonitor, the global IT hardware and equipment is projected to recorda CAGR of 6.3% during 2009–14. Further, the global IT consulting and other services market isforecast to grow at a CAGR of 2.4% during 2009–14.

Being one of the leading provider of mobility products, desktop PCs, software and peripherals,servers and networking, storage and IT services, Dell is poised to capitalize on the global IT positiveoutlook.

Increasing adoption of cloud computing services

The worldwide demand for cloud computing services is forecast to record strong growth in comingyears. Cloud computing is a computing infrastructure model, which enables delivery ofsoftware-as-a-service (SaaS), platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS).This reduces the upfront royalty or licensing payments, investment in hardware and other operatingexpenses. As result of its benefits, the global cloud computing services market is forecast to growat a CAGR of over 20% during 2009–14.With the growth of cloud computing services, the enterprisesare expected to gain significant savings from SaaS, PaaS and IaaS during the next five years.

Dell is increasing its presence in cloud environments and also launched new offerings in this domain.In 2009, Dell and salesforce.com, the enterprise cloud computing company, together launchedcertified Dell-salesforce.com solutions, joint offerings for small and medium businesses, that offer

Dell Inc. Page 26© Datamonitor

Dell Inc.SWOT Analysis

Page 27: Dell Data Monitor

customer relationship management applications through the cloud. Further, Dell in collaboration withIntel launched a cloud-based learning management platform during May 2010. As a part of expandingits cloud strategy, Dell formed a strategic partnership with Microsoft to use the Windows Azureplatform appliance as a part of its Dell Services Cloud for developing next-generation cloud services.

The company’s focus on cloud computing services will enhance its revenue and market share incoming years.

Threats

Intense competition

The company faces intense competition in all its business segments. It competes in terms of price,quality, brand, technology, reputation, distribution and range of products, among other factors. Dellfaces stiff competition in enterprise PC and server markets from Acer, Apple, HP, Lenovo, IBM andToshiba, among others. In some regions, the company faces competition from local companies andfrom generically-branded or white box manufacturers. In the consumer market, Dell faces stiffcompetition from HP, Acer, Apple, Sony, Lenovo and Asustek. Furthermore, in the European andAsian netbooks markets the company faces intense competition from Asustek. In addition, with thelaunch of smartphone in FY2010, the company’s mobile business competes with Apple, RIM, andHTC.

Intense competition may affect the company’s operating performance and market share in comingyears.

Product defects

Dell's products are highly complex and sophisticated. As a result, they may occasionally containdesign defects, software errors or security problems that may be difficult to detect and correct. Inaddition, implementation of the company's products may involve customer-specific configuration. Inparticular, it is common for complex hardware products to contain undetected errors when firstreleased. They are discovered only after the product is used over time with different systems andin a variety of applications and environments. Despite extensive testing before release, the companymay experience errors in the products, which may affect the market acceptance of the products.

For instance, the company faced product defect issues and recalled several products in the recentpast owing to quality issues. In August 2006, the company announced the recall of 4.1 millionnotebook batteries owing to fire risk. Additionally, in October 2008, Dell updated itsbattery-replacement program based on additional information it received from lithium-ion batterysupplier, Sony.

Product defects resulting in recalls may undermine the faith of consumers in the products, benefitingthe competitors of the company.

Dell Inc. Page 27© Datamonitor

Dell Inc.SWOT Analysis

Page 28: Dell Data Monitor

TOP COMPETITORS

The following companies are the major competitors of Dell Inc.

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

Dell Inc. Page 28© Datamonitor

Dell Inc.Top Competitors

Page 29: Dell Data Monitor

COMPANY VIEW

An excerpt from the ‘Management’s discussion and analysis of financial condition and results ofoperations’ section of 10-K is given below. The statement has been taken from the company’s 10-Kfiling for FY2010.

------------------------------------------------------------------------------------------------------------------

In Fiscal 2010, our overall net revenue decreased year-over-year due primarily to the global economicslowdown that began during the second half of Fiscal 2009. The weakened economy continued toimpact the IT spending of our Commercial customers, which accounted for 77% of our overall revenuefor Fiscal 2010. Our Consumer segment experienced significant unit demand growth year-over-year,but a mix shift to lower-priced products and competitive pricing pressures resulted in a decrease inConsumer revenue and profitability. During the second half of Fiscal 2010, the IT industry startedto see signs of economic recovery, and as a result, our unit shipments during the fourth quarter ofFiscal 2010 improved year-over-year for all of our segments. Overall, we have seen indications ofstrengthening demand in the Commercial segments and continued growth in the Consumer segment,and we believe that, as the global economy continues to recover, our revenue in Fiscal 2011 shouldimprove relative to Fiscal 2010.

During Fiscal 2010, we focused on balancing liquidity, profitability, and growth by emphasizing areasthat provided profitable growth opportunities. We also took actions in this challenging demandenvironment to shift towards a more variable cost manufacturing structure, reduce operating expenses,and improve our working capital management. We are beginning to see the positive impact of theseefforts and expect that the benefits of our strategy will carry into Fiscal 2011, with anticipated enhancedoperating leverage should revenue growth return.We will continue to work on additional cost reductionand efficiency efforts.

We will continue to focus our efforts on providing best-value solutions to our customers in all areasof enterprise, including servers, storage, services, and software. We believe these solutions arecustomized to the needs of users, easy to use, and affordable. During the fourth quarter of Fiscal2010, we acquired Perot Systems, a worldwide provider of information technology and businesssolutions, and we expect to increase our portfolio of solutions offerings to our customers. Additionally,we will continue our overall strategy of seeking to balance profitability and liquidity with revenuegrowth.

------------------------------------------------------------------------------------------------------------------

Dell Inc. Page 29© Datamonitor

Dell Inc.Company View

Page 30: Dell Data Monitor

LOCATIONS AND SUBSIDIARIESHead Office

Dell Inc.One Dell WayRound RockTexas 78682USAP:1 512 338 4400F:1 512 283 6161http://www.dell.com

Other Locations and Subsidiaries

Dell - UKDell - CanadaMilbanke House155 Gordon Baker RoadWestern RoadStreet 501Bracknell, BerkshireNorth YorkBerkshireOntario M2H 3N5GBRCAN

Dell - AsiaDell - Japan180 Clemenceau AvenueSolid Square Building06 01 Haw Par CenterHigashikan 20fSingapore 239922580 HorikawachoSGPSaiwai-Ku, Kawasaki

Kanagawa 212-0013JPN

Dell Australia Pty LimitedDell Asia Pte. Ltd.Building 3Divyasree Greens14 Aquatic DriveGround Floor S.No. 12/1, 12/2A, 13/1AFrenchs ForestChallaghatta VillageNew South Wales 2086Varthur HobliAUSBangalore

IND

Dell Inc. Page 30© Datamonitor

Dell Inc.Locations and Subsidiaries