Dell Phils. optimistic on local growth
Dell Philippines is “cautiously optimistic” as demand for higher value, higher-margin servers, storage systems and services rebounded among its commercial business clients in the last quarter of 2009.
The company banks on the trend continuing into fiscal year 2011.
Dell’s powerful and practical technology, especially enterprise IT solutions, drew commercial customers and brought in solid fiscal fourth quarter global revenues of $14.9 billion, up 11 percent from a year ago, as well as strong cash flow from operations of $1.3 billion for the quarter, $3.9 billion for the full fiscal year.
“We are reinventing Dell’s supply chain to gain as much savings as we can to pass on to customers.
However, we want to be not just in best in cost product but also the best in class,” declared Varinderjit
Singh, Managing Director for South Asia Developing Markets.
Correspondingly, the company plans to double the number of its Filipino people in enterprise business as it expands further.
“We want to get more market share, make sure the right product goes to the right customers.”
“Dell established itself 25 years ago by asking people what they need first before manufacturing its Personal Computers,” Dell Philippines Country Manager Barry Bunyi emphasized.
Now, Dell, which is also one of the world’s largest e-commerce sites, logs 2 billion interactions with customers per year and is poised to transform the web itself. At present, the company has an installed base of 130 million clients and 7 million servers.
It manages 2.5 million clients, 5 petabytes of data and 5,500 IT as a Service (ITaaS) customers.
Some 24 of the world’s supercomputers run on Dell. The company ranks number 1 in cloud computing, virtualization infrastructure and cloud infrastructure. It ranks number 3 in storage.
Significantly, medium sized businesses spend between 70 and 80 percent of their IT budget on maintaining the IT infrastructure. But budgets and resources are not the only constraints to strategic use of IT in medium sized businesses, Bunyi noted. It has to do with processes and priorities.
“Customers don’t need more budget. They need more efficiency.”
IT savvy firms build a digitized platform of business processes, IT systems, and data to help them execute their operating strategy. Their platform not only uses IT to make their business efficient but it also identifies future profitable growth opportunities. With just little investments, these firms use the information to create new products that are faster to sell. For this reason, IT-savvy firms are 20 percent more profitable than their competitors, and spend as little as 50 percent of their IT budgets on operating and maintaining their current system. They end up with more resources to fund new business initiatives and grow. The average company spends 71 percent and others even spend up to 80 percent of their IT budget on just keeping the lights on.
Dell is a prime of technology savvy. As one of the biggest technology companies in the world employing some 96,000 workers, the company came up with an “Efficient Enterprise” methodology that amounts to US$500 million half a billion dollar savings to be reinvested in innovative development and new applications. It was able to pare US$150 million off its 2009 IT budget and is on track to cut an added US$200 million.


