1. Dell EMC eyes Jan Dhan, Aadhaar and mobile to increase market share

Dell EMC eyes Jan Dhan, Aadhaar and mobile to increase market share

We have both on-premise as well as cloud solutions to offer our clients. Our solutions have embedded artificial intelligence which helps the software in learning from user behaviour and adapt to evolving requirements, says Rajesh Janey, president & MD, India Enterprise, Dell EMC.

By: | Published: August 7, 2017 4:31 AM
The IT firm is already engaged in providing services for various government projects and expects more engagement in the future.

The government’s JAM (Jan Dhan, Aadhaar, mobile) trinity isn’t just bringing about a revolution in the lives of citizens at the bottom of the pyramid by using digital technologies. It is also opening up new business opportunities and ensuring a healthier bottom line for firms holding up this mammoth digital infrastructure. One such IT firm that hopes to ride on the JAM juggernaut and boost its fortunes is Dell EMC. Despite Dell EMC reporting an operating loss of $1.5 billion globally for the first quarter after the two companies merged, the India operations is looking to capitalise on the JAM initiative to strengthen its position in the domestic market and increase market share. “As of today, as per analysts, overall information technology (IT) industry (including hardware, software, and storage along with mobility services) is estimated at $75 billion in 2017. This is primarily because Digital India will ride on JAM, and thus mobile devices and services will also become important,” said Rajesh Janey, president and managing director, India Enterprise at Dell EMC. Though Dell EMC is not present in the mobility space, it sees a role in mobility sector by enabling IT infrastructure.

Post merger, Dell EMC employs around 1,40,000 people across 180 nations having a combined revenue of $74 billion. Before the merger was finalised in September, 2017, India was Dell’s third-largest market. As per estimates, excluding mobility the Indian IT market is estimated at $26 billion in 2017. Out of this, Dell EMC’s area of influence is $9-9.5 billion in 2017. In the $350-billion software storage market, Dell EMC’s market share was around 43% in the first quarter in 2017. For the first quarter, Dell EMC’s enterprise business has witnessed a 26% year-on-year growth while the combined growth (enterprise and consumer) stands at about 16% year-on-year. For personal computer, on commercial side, its market share is about 22.5%. For servers, which is a $800-900 billion market, the company’s market share is close to 31%.

“Interestingly, the overall market for storage has attained a negative growth of 4.3% quarter over quarter, but we have attained a positive growth of 4.8%. So, as combined, we have seen a positive trend for ourselves,” he added. The company is already engaged in providing services for various government projects and expects more engagement in the future. “The entire GST (Goods and Services Tax) process is powered by Dell EMC. The entire infrastructure, from computing to network piece and others, is built on Dell EMC. Moreover, when the Central Board of Excise and Customs (CBEC) will do the analytics of the data, even that process will be done on Dell EMC server,” added Janey.

The government on July 1, 2017 rolled out GST which aims to create a combined market across the country and make tax processes transparent. Dell EMC also powers the entire Aadhaar system which is a unique identity provided to each citizen of the country. “The government continues to be a big segment for us. CBEC and few others are powered by our infrastructure. Talking about NIC (National Informatics Centre), quite a few of its applications are also run on our infrastructure,” said Janey, observing that though NIC has been using cloud storage for a long time, from the business point of view as far as the government’s push for storage is concerned, the company has benefited more from converged infrastructure than cloud.

“But yes, cloud has attained mass acceptance over few years,” he added. In addition, apart from the National Stock Exchange and BSE Ltd, digital consolidation of 25,000 branches of the country’s largest lender State Bank of India are being consolidated by the company’s data centres. “We have already rolled out 5,000 branches and over the next few quarters, we will be done with the rest,” he said. The coming together of Dell and EMC has enhanced the entity’s ability to take comprehensive solutions to customers and partners. Earlier, both companies had different sets of products to offer to customers but the combined portfolio is stronger.

“Therefore, when a customer today says ‘I want to drive my digital initiatives’, we are telling them that you need to do 2-3 things to drive your digital initiatives—IT transformation, workforce transformation and security transformation. Dell EMC is able to address a large part of all three pillars adequately,” Janey said. Janey believes that the combined entity has a very solid foundation as it has opened a manufacturing plant, has nine offices across India and has research and development teams—everything it needs to accelerate in the Indian market—and the focus will be on growing the market share in the country. Dell EMC is positioned second in the Indian storage market. In the personal computers market also, it is at number two position. “Our focus is now to become No. 1,” said Janey.

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