Dell India on Monday said the company will focus on mid-size markets for storage, servers and solutions business and growth rate for such businesses will be faster than that of personal computers.
Mix of solutions (servers, storage and services) increased by four-five per cent last year and sales would continue to grow at a higher level in future, the company said.
However, revenue wise, PC business would remain the largest and Dell India would focus on revenues. Unlike other companies, it would not look at volume growth, but revenue growth, the company said.
“PC business contributes 70 per cent of our revenues, while 30 per cent is from storage, servers and services. We will continue to be committed towards PC business, but growth rate from solutions will be faster than it,” Mr Sameer Garde, President and Managing Director, Dell India, told
Three areas
The company has focused on three areas – public and large enterprise, mid market and consumer and small businesses through distribution channels – by deploying automated services for ease of use.
The company would deploy such solutions through cloud computing. Right now, the company is providing services through private cloud to customers, and Dell India would tie-up with local partners in future for providing services through public cloud, he said.
Declining to comment on growth rate or revenue share country wise, he said Dell India believes solutions business is the next frontier in the information technology industry because safety of data storage is an important aspect for customers.
On asked about any impact in India on Dell’s $2-billion cost cut over the next three years, Mr Garde said Dell India business would run as it is.
Impacted by flat performance in the Asia Pacific and Japan (APJ) region, including India, Dell global’s net profit declined by around 33 per cent to $ 635 million in the first quarter of 2012-13 ended April.
During the company’s quarterly results announcement in May, Dell President (APJ) Mr Amit Midha had said that performance of the region was impacted by India.