Posts Tagged ‘Dell’

Dell triples quarterly profit as cloud and services deliver

May 18th, 2011

Technology giant Dell reported that its quarterly profit grew almost three-fold to US$945m from US$341m last year. Revenues were up 1pc to €15bn as strategic acquisitions in the area of cloud, services and security began to deliver.

“We’re off to a solid start in our fiscal year 2012,” chairman and CEO Michael Dell exclaimed.

“Our substantial profit increase demonstrates that our strategy is working and our execution is improving.”

Revenue for Dell’s commercial business improved 3pc to $12 billion, with record profitability. Commercial services revenue increased 6pc.

Enterprise solutions and services revenue grew 5pc to $4.4 billion in the quarter and represents 30pc of Dell’s consolidated revenue.

Servers and networking revenue increased 11pc.

Dell-owned storage technology, which includes Compellent, EqualLogic, PowerVault and DX Object Storage, grew 11pc in the quarter, offset by declines in EMC storage. The company’s overall storage business revenue declined 13pc. Dell closed the acquisition of Compellant during the quarter, has already developed a strong pipeline of business and is on track with integration plans for the period.

Dell Services revenue grew 5pc to $2 billion. Transactional support and outsourcing revenue were up 5pc and 3pc, respectively, while the project services business grew 13pc. Dell also added enterprise-class security capability in Q1 with the closing of its acquisition of SecureWorks.

The company expanded its global financing capability during the quarter with the announcement of its intent to acquire from CIT Dell Financial Services(DFS) Canada Ltd., as well as CIT Vendor Finance ’s Dell-related assets and sales and servicing functions in Europe.

Dell’s business units
Large Enterprise had record operating income of $504 million, or 11.3pc of revenue on $4.5 billion of revenue, up 5pc from a year ago. Enterprise solutions and services revenue was $1.8 billion, a 2pc increase. Revenue from desktop and laptop computers grew 7pc as the client refresh among large corporate accounts continued.

Public revenue was $3.8 billion, a 2pc decline resulting from weaker spending on desktop and laptop products. Enterprise solutions and services revenue was up 3pc Server revenues increased 9pc. Operating income for the quarter was $370 million, or 9.8pc of revenue.

Small and Medium Business had record profit in the quarter with revenue up 7pc to $3.8 billion, a two-year high driven by strong demand across all products and services. Operating income was $463 million, or 12.3pc of revenue. Enterprise solutions and services revenue was up 16pc, driven by a gain in servers of 19pc; services of 16pc, and storage of 7pc.

Consumer business struggles
Consumer revenue was $3 billion, down 7pc, as demand was softer than expected. However, profit significantly improved with operating income of $136 million, or 4.5pc of revenue, benefiting from a simplified brand structure that now includes an improved line of Inspiron, re-launched XPS, and Alienware products, a shift to higher value products, and structural and component cost improvements in the supply chain.

Revenue from growth markets (which excludes the U.S., Canada, Western Europe and Japan) grew 17pc and represents 27pc of total company revenue. Revenue from BRIC countries grew 18pc, with India up 28pc and China up 22pc.

Source:http://www.siliconrepublic.com/business/item/21837-dell-triples-quarterly/

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Dell to Invest $1 Billion on Cloud Computing Solutions

April 29th, 2011

In an effort to increase investments in new technology solutions that will help foster customer innovation and drive business results, Dell (News – Alert) recently announced its plans to invest $ 1 billion in the current fiscal year to deliver leading solutions, services and cloud-based delivery options.
“Technology advances, delivery methods and the move to disruptive IT models like cloud are changing the fundamental way businesses operate,” said Steve Schuckenbrock, president of Dell Services, in a statement. “With this transformational shift, businesses are gaining benefits in terms of speed to market and organizational and compute flexibility.”

Schuckenbrock said that Dell is mobilizing to help customers capture these benefits and make the power of cloud computing accessible to more organizations and users. Dell has made and will continue to make significant investments to deliver technology that helps customers thrive in the Virtual Era, according to Dell officials.

Over the next 24 months, the company will build multiple highly efficient cloud data centers around the world to provide its customers access to public and private cloud technologies and its world-class IT outsourcing capabilities.

These new data centers will allow customers to take advantage of infrastructure- and virtual desktop-as-a-Service offerings as well as IT outsourcing.
Company officials pointed out that Dell will open 12 Global Solution Centers this year and is planning 10 more over the next 18 months, to better bring open, capable and affordable solutions to organizations around the world.

This global network of solution centers will provide a backdrop for customers to learn about Dell’s industry-focused solutions and domain expertise.
Dell also launched new Next Generation Data center, End-User Computing and Email Archiving solutions that enable efficiency and innovation from the core to the edge.

In other cloud computing news, NaviSite (News – Alert) achieved the Cisco Advanced Managed Services Certification, which recognizes the company’s initial investment in the ITIL processes, practices and tools necessary to provide high-quality managed services.

“This achievement represents an important milestone in the development and roll out of our cloud-based services,” said R. Brooks Borcherding, president and CEO of NaviSite earlier this month.

Source:http://it.tmcnet.com/channels/cloud-computing/articles/167672-dell-invest-1-billion-cloud-computing-solutions.htm

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Ex Wipro CEO Suresh Vaswani appointed Dell India Chairman

April 8th, 2011

Vaswani at Dell Serivces will report to Steve Schuckenbrock, the president of Dell Services.

Vaswani’s focus will be to build next generation service offerings and grow Dell’s process capabilities on a global basis across multiple industry verticals, service offerings and market segments, personal computer major Dell said in a statement.

“Dell has a great presence in India and I look to enhancing its tremendous global delivery model to make Dell a leading technology solutions provider in India and reinforce its position as an employer of choice,” Vaswani said.

The Dell Services Applications and Business Process Outsourcing organisation includes more than 15,000 team members globally. This division was created after Dell acquired Perot Systems for $3.9 billion in 2009. Over the last two years, Dell Services’ revenues have grown to $7.7 billion and India is an important market for the entity.

In his role as chairman of Dell India, Vaswani will carry the responsibility of enhancing Dell’s global delivery capabilities and expanding the company’s presence in the Indian IT market.

In January this year, Vaswani along with his colleague Girish Paranjpe had to left country’s third largest IT company Wipro as Joint CEO. The decision was taken after Wipro opted for restructuring of management system from joint CEO structure to single CEO structure.

Source:http://www.siliconindia.com/shownews/Ex_Wipro_CEO_Suresh_Vaswani_appointed_Dell_India_Chairman-nid-81713.html

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Dell’s Services in Demand

March 3rd, 2011

Dell Inc. has clinched a six-year information technology outsourcing deal with TUI Travel plc, a company under TUI AG, a renowned European travel group. Financial details of the deal were not divulged.

Per the terms of the deal, Dell will provide hardware and software asset management, as well as help desk, printer management, patch management, deployment, software compliance, and other services in the UK, Germany, France, Spain, the Netherlands and Switzerland.

Apart from the above services, Dell will develop a single point of communication to resolve all technical issues and set up a 24×7 help desk service for customer queries. TUI Travel will leverage Dell’s services to reduce cost of managing infrastructure as well as maximize employee productivity.

A few days back, Dell signed a seven-year deal with the Brooklyn Hospital Center , under which the PC maker will provide its revenue cycle services. These services will facilitate TBHC in billing and payer reimbursement, thereby delivering maximum patient satisfaction.

We believe Dell’s services are in demand and will be a revenue driver in the coming quarters. During the recently concluded fourth quarter of 2011, Dell recorded a 1% year-over-year growth in its Service business. However, the company strengthened its services portfolio with the three acquisitions, namely information-security services provider SecureWorks Inc., cloud-based service provider Boomi and cloud-based medical archiving solutions provider Insite One Inc.

Apart from Dell’s deal wins and acquisitions, we remain encouraged by its decent fourth quarter numbers, with earnings per share and revenues showing annual improvements. New products, a stronger services business, opportunities in the Electronic Medical Record sector, along with the introduction of Dell Streak were the achievements of the year. Dell’s international exposure, particularly expansion in China, is also encouraging.

However, a high debt level and increasing competition from Hewlett-Packard Company and Acer keep us concerned.

Source:http://www.zacks.com/stock/news/48282/Dell’s+Services+in+Demand

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Dell Services bags IT outsourcing contract from TUI Travel

March 2nd, 2011

To deploy managed infrastructure services and utilise IT Infrastructure Library (ITIL) systems and cloud-based asset management capabilities for TUI Travel

Dell Services has signed a six-year IT outsourcing contract with European travel company TUI Travel, to deploy managed infrastructure services and utilise its IT Infrastructure Library (ITIL) systems and cloud-based asset management capabilities for TUI Travel.

Under the agreement, Dell Services will help TUI Travel standardise its IT services that support its employees, with Service Desk offerings such as desktop, laptop, and printer support, and Managed Client services including Managed Active Directory and Exchange.

In addition, Dell Services will provide a single point of contact for resolving technical issues and offer 24/7 service desk support, utilising workflows, automated process tools and practices to help increase efficiencies and control costs, said Dell.

The IT outsourcing contract also includes the provision of hardware and use of Dell Managed Deployment Services, an end-to-end offering designed to help speed deployment time, save money, and provide planning and project management to support IT staff.

Further, Dell Managed Print Services will be utilised to assist TUI Travel in modernising its printer fleet, which will help decrease the total cost of printing, claims the company.

Dell said that the services will be provided initially in the UK, Germany, France, Spain, the Netherlands and Switzerland.

Dell Services director Eric Velfre said with a standardised tool set and cloud-based infrastructure, they are excited to help TUI Travel drive cost savings and improve productivity for its operations across 180 countries.

Source:http://servicemanagement.cbronline.com/news/dell-services-bags-it-outsourcing-contract-from-tui-travel-010311

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Dell beefs up Security-as-a-Service with SecureWorks buy

January 4th, 2011

Firms unite to fight ‘frequency and sophistication’ of threats

Dell has continued its push into the services sector with the acquisition of SecureWorks, a firm that specialises in managed security and threat intelligence. Financial terms were not disclosed although Dell did confirm it was a cash transaction.

The move is the latest effort from Dell to push into the services arena, a strategy that was given a massive kick when it acquired Perot Systems for $3.9bn in 2009. The SecureWorks Security as a Service platform will help Dell Services’ BPO and IT outsourcing capabilities, the firm said, and help meet demand from customers for more “as-a-Service” products via a managed services offering.

The deal is a sign of the growing importance of security and compliance to businesses and echoes HP’s acquisition of ArcSight for $1.5bn. SecureWorks deals with more than 13 billion “security events” and sees more than 30,000 malware specimens each day, Dell said. Michael Cote, CEO of SecureWorks, added that the company defines a “security event” as a potential security threat.

“The frequency and sophistication of attacks on technology infrastructure and malicious attempts to access data, requires reliable, capable and innovative information security,” said Peter Altabef, president, Dell Services. “SecureWorks is a recognised industry leader in information security services and its offerings and expertise will immediately enhance our solutions portfolio.”

“We look forward to welcoming SecureWorks team members – who bring their passion and dedication to serving clients with best-in-class security services – to Dell and our clients,” Altabef said. He confirmed in a conference call that the SecureWorks leadership team will remain with Dell.

SecureWorks claims to have just under 3,000 customers, ranging from financial services firms to healthcare companies and it is said around 15% of the Fortune 500 use the company’s services. It was founded in 1999 and is headquartered in Atlanta, Georgia.

SecureWorks has around 700 employees and projects FY2010 revenue of $120m. Using this revenue figure, CBR estimates the deal to be worth $300m – $450m.

Source:http://security.cbronline.com/news/dell-beefs-up-security-as-a-service-with-secureworks-buy-040111

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Why telemarketing growth took a dip

August 10th, 2010

The telemarketing industry has witnessed some sharp rises in the growth chart. Studies conducted on call center units by various independent surveys have validated that. It’s true that last year the BPO sector was not really working wonders for the employees or for the economy. Things started to change for the better during the early months of this year. The first quarter, from January to March, paid great dividends to the telemarketing services. Encouraged by their success, the call centers went all out in the second quarter to attain something bigger than it was last time. The efforts were not less than what was desired. However, things didn’t turn out well for the BPO service. The spike of the first quarter was followed by a dip in the next.

There are some valid reasons why the telemarketing sector couldn’t repeat the performance of the first quarter. The main reason is the amount of offshore BPO outsourcing that is happening on the global scene. Call centers in the developed countries are going dry because the projects are not really there for them to work on. Telemarketing services being outsourced to the developing countries meant that the domestic projects were not coming to them. The business firms would, of course, prefer offshore BPO service because of the cost cuts that they can avail. The money generated in these deals is less than what it would have been for call center units in the developed countries. The lesser sum of money involved is why the total revenue generated dipped in the second quarter.

Another reason is the Do Not Call (DNC) list. The telemarketing agents are hugely restricted by the growing importance of the DNC list. Telecom authorities across the world are coming down heavily on telemarketing services that violate the DNC list. Call centers are being burdened with law suits and penalties. Previously, the call center units could get away with these violations. The situation has changed in the present scenario. Now, you have the authorities enforcing the penalties in an active, aggressive way. Clients are wary about BPO units that have a legal hassle to deal with. No client would want to associate themselves with such a BPO service unit and bring harm to their brand image. That’s something that the business process outsourcing firms will have to be careful about.

The telemarketing sector may also have been hit with the increased dependence on the internet for lead generation. Voice calls are passé for many clients and companies. They want to use Web 2.0 tools for their sales lead generation. The result is that the call center units are relying on social media networks and websites to promote products/services. The search engine optimization (SEO) efforts of the BPO unit make them come off as the market leaders in BPO service. In fact, SEO is now a distinct part of the call center services. The outbound call center agents are spending more time in creating profiles and maintaining them on social media networks than in calling people.

Source:http://www.freeezinearticles.com/2010/08/10/why-telemarketing-growth-took-a-dip/

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