At a time when the users are moving towards smartphones and tablets, and Dell Technologies itself is increasingly offering more innovative business solutions, the company’s chairman and chief executive officer Michael Dell has said that personal computers remain the core of the Texas-based firm.
“We go far beyond personal computers but that remains our core,” said Dell while speaking at the Dell EMC World 2017 conference held in Las Vegas. On being asked that this segment of business is facing stiff pricing competition especially from Asian manufacturers, Dell added the company has gained market share in 17 quarters in a row as on today and though cost of making computers is going up, revenue is also going up simultaneously.
“There is a $170 billion space available. The market is consolidating and we are well-positioned to gain more market share,” he said adding that one should remember that the driver behind Internet of Things is personal computers and the units the company sells are more valuable compared with others. The billionaire philanthropist also announced that Dell will soon globally roll out personal computers as a service.
Dell Technologies and EMC Corporation closed its merger in September last year creating a $74-billion company, the world’s largest privately held technology firm. Observing that the combined entity is uniquely positioned to drive businesses through information technology transformation, Dell said, “Being privately controlled gives us the flexibility to take long-term perspective while making investments.”
Dell EMC, the post-merger entity, announced the launch of various customer-centric services and solutions which will help businesses in digital, information technology and workforce transformation. These include modern data centre innovations, new 14th generation of PowerEdge servers, simple and predictable flexible consumption models designed to accelerate information technology transformation, and enhanced cloud storage solutions, among others.
Meanwhile, the Dell Technologies’ chief financial officer Tom Sweet said the company got affected by the Indian government’s decision to demonetise old `500 and `1,000 currency notes. “We got hit in the fourth quarter as it (demonetisation) curtailed our consumer business,” added Sweet.
The National Democratic Alliance government had in November announced that old currencies of the above-mentioned denominations will no longer remain valid in an attempt to wipe out black money from the system. However, Sweet added that though the company was expecting the demonetisation effect to continue in the first quarter, “the country has seems to have adjusted well”.
Talking about doing business in India, Sweet said the company sees a lot of opportunities in the financial services and smart cities programme of the government, and the company has been in dialogue with the government to offer solutions.
Sweet, however, added that a stable business and taxation environment will be required for the company to understand the laws and make investment decisions. “The roll out of GST (goods and services tax) should be helpful over time,” he said.
The government plans to roll out GST by July 1, 2017. The company invests around $4.5 billion annually in research and development (R&D) globally and it has four R&D centres in India located in Bangaluru, Chennai and Pune. The company is working on the optimal percentage that should go in R&D though at present the investment in this area is likely to remain at the current level.
(Travel for this report was sponsored by Dell Technologies)