Dell Technologies Company Profile

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Dell Technologies
Company Profile

by Faulkner Staff

Docid: 00014675

Publication Date: 2210

Report Type: VENDOR


Dell Technologies was formed out of Dell’s 2016, $67 billion merger with
EMC. The company functions as a top provider of information technology
(IT) and operates two reportable business segments. The Infrastructure
Solutions Group produces servers, storage, networking, and other
multi-cloud and Big Data solutions. The Client Solutions Group includes
Dell-branded hardware such as desktop PCs, workstations, and notebooks;
peripherals including displays and projectors; and third-party software
and peripherals. Dell employs approximately 133,000 employees and
maintains 374 locations in 77 countries. This report takes a more detailed
look at Dell Technologies’ operations.

Report Contents:

Fast Facts

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Name: Dell Technologies
One Dell Way
Round Rock, TX 78682
(800) 289-3355
(512) 338-4400
Type of Vendor: IT Solutions Provider
Founded: 2016 (merger of Dell and ECM)
Service Areas: Global


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Dell Technologies was formed out of the September 2016 reorganization of
Dell, Inc. following its $67 billion acquisition of rival EMC. The firm
acts as a provider of IT (information technology), actively engaging in
the design, development, manufacturing, marketing, selling, and support of
many different types of products and services. The company is organized
into two reportable business segments:

  • Client Solutions Group (CSG) – Branded hardware (such
    as desktops, workstations, and notebooks) and branded peripherals (such
    as displays and projectors), as well as third-party software and
    peripherals. These products are designed for both consumers and
    enterprise usage. CSG also offers attached software, peripherals, and
    services, including support and deployment, configuration, and extended
    warranty services.
  • Infrastructure Solutions Group (ISG) – Provides
    server, storage, and virtualization software solutions. The server
    portfolio includes high-performance rack, blade, tower, and hyperscale
    servers. Storage solutions include both traditional as well as
    next-generation storage solutions, including all-flash arrays, scale-out
    file, object platforms, and software-defined solutions.

For both the CSG and ISG segments, approximately half of ISG revenue is
generated by sales to customers in the Americas, with the remaining
portion derived from sales in the Europe, Middle East, and Africa region
(EMEA) and the Asia-Pacific and Japan region (APJ).

Other companies that are part of the Dell umbrella (although not
classified as reportable segments, either individually or collectively)

  • Secureworks – Intelligence-driven information
    security solutions focused on protecting clients from cyber attacks.
    Although Secureworks became a publicly traded company in 2016, it is
    still majority owned by Dell.
  • Virtustream – Cloud software and
    Infrastructure-as-a-Service solutions that migrate, run, and manage
    mission-critical applications in cloud-based IT environments.

History & Milestone Events

With $1,000 in startup capital, Michael Dell began his company in 1984 as
Dell Computer Corporation, dba PC’s Limited. Significant events in the
history of the company now known as Dell Technologies are briefly listed

  • 1984 – Founded by Michael Dell, who has the vision of
    bypassing the middleman and selling custom-built PCs directly to
  • 1985 – Designs and sells its first computer system of
    its own design.
  • 1986 – Debuts the fastest computer of its time: a
    12-MHz, 286-based system.
  • 1987 – Opens its first international subsidiary in
    the UK.
  • 1988 – Raises $30 million in its Initial Public
    Offering (IPO).
  • 1989 – Introduces the company’s first notebook
  • 1990 – Opens a manufacturing center in Ireland.
  • 1991 – Introduces its first notebook with a color
    display … Converts its entire product line to support Intel 486
  • 1993 – Becomes one of the top five computer system
    makers worldwide … Introduces the Dimension desktop product line for
    small businesses and consumers, as well as the OptiPlex line for
    corporate users … Enters the Asia-Pacific region with subsidiaries in
    Australia and Japan.
  • 1994 – Launches the Latitude XP and introduces the
    Lithium-Ion battery … Introduces the PowerEdge server line.
  • 1996 – Earns approximately $1 million per day within
    seven months of launching
  • 1997 – Introduces ExpressCharge for notebook
    computers … Rolls out Dell Precision line of products for high-end
    graphics applications.
  • 1998 – Opens new facilities in China, Ireland, and
    the US.
  • 1999 – Introduces E-Support, an online tool for
    technical support … Factory installs Red Hat Linux as an option for
    corporate customers.
  • 2000 – Introduces Wi-Fi built in to Dell notebook
    computers … Introduces the PowerApp appliance server line … Sees
    company sales via the Internet reach $50 million per day … Is ranked
    #1 in worldwide workstation shipments.
  • 2001 – Achieves #1 ranking in global market share and
    #1 in US for standard Intel architecture server shipments … Brings the
    ISV-certified Mobile Workstation system to market … Launches the
    PowerConnect line of network switches.
  • 2002 – Is ranked #1 in the US for computer systems
    … Ships its first blade server (PowerEdge 1655MC) … Introduces the
    3100MP projector … Integrates Gigabit Ethernet networking.
  • 2003 – Makes the name change to Dell Inc. official
    … Enters the printer market.
  • 2004 – Sees Michael Dell step down as CEO, despite
    remaining on as Chairman … Names Kevin Rollins as CEO.
  • 2005 – Offers computer workstations based on Intel
    dual-core processors … Introduces the lead-free OptiPlex platform.
  • 2006 – Loses its #1 position in the worldwide market
    to rival Hewlett-Packard … Is investigated by the US SEC for issues
    surrounding revenue recognition and financial reporting.
  • 2007 – Sees Michael Dell resume his role as CEO after
    earnings fail to reach consensus analyst-estimates for the fourth time
    in five quarters … Announces that – as a result of the SEC
    investigation – it will reduce more than four years’ worth of earnings.
  • 2009 – Acquires Allin’s IT consulting and solutions
    segments through a $12 million stock purchase agreement.
  • 2010 – Prepares to establish a communications unit as
    part of a reorganizational initiative to combine its consumer and SMB
    business groups … Launches its first computing device: the Dell Streak
    … Rolls out its first Microsoft Windows Phone device: the Venue Pro.
  • 2011 – Agrees to acquire Force10 Networks.
  • 2012 – Completes its acquisition of Wyse Technology,
    a provider of cloud client computing, and SonicWALL, a security
    company specializing in advanced network security, secure remote access,
    email security, backup, and recovery … Announces plans to acquire
    Quest, an IT management software provider, and Make Technologies, a
    provider of application modernization software and services.
  • 2013 – Sees CEO Michael Dell and Silver Lake Partners
    assume private ownership of the company.
  • 2016 – Completes the acquisition of EMC and rebrands
    itself as Dell Technologies.
  • 2017 – Announces that Infrastructure Solutions Group
    President David Goulden will step down at the end of the fiscal year,
    with Jeff Clark taking over leadership of both Infrastructure Solutions
    and Client Solutions … Begins teaming with Atos to collaborate on IoT
    (Internet of Things) technology … Introduces new PowerEdge servers for
    cloud, analytics, and the software-defined data center … Enters into
    an AI (artificial intelligence) collaboration agreement with Toshiba.
  • 2018 – Introduces new PowerEdge MX Series and R
    Series servers; a Ready Solutions for AI portfolio that offers
    specialized designs for machine learning; and updated thin client
    software and operations tools … Expands its partnership with NTT Group
    (“smart city” initiatives) and forges an agreement with Intel
    (artificial intelligence and machine learning) … Appoints senior
    marketing executive Allison Drew as Chief Marketing Officer … Detects
    and disrupts “unauthorized activity” on its network, via an unauthorized
    attempt to extract customer information from Dell’s Web site.
  • 2019 – Partners with AT&T to explore open-source
    network infrastructure technology development … Adds AI and HPC
    consulting services … Sells Pivotal Software to VMware for $2.7
  • 2020 – Sells RSA to a consortium led by Symphony
    Technology Group and AlpInvest for $2.075 billion … Mulls a spinoff
    for VMware that would not occur before September 2021 … Adds a
    subscription-based model to the Dell Cloud service.
  • 2021 – Completes the spin-off of its 81 percent
    equity ownership of VMware Inc. … Sells the Boomi cloud-based
    integration Platform-as-a-Service (iPaaS) offering to tech investment
    firm Francisco Partners and TPG Capital … Hires Chuck Whitten as
    co-chief operating officer joining vice chair and co-COO Jeff Clarke.


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Dell’s strategy is to create technology that can “drive human progress”
by advancing sustainability, cultivating inclusion, transforming lives,
and upholding ethics and privacy. The company’s vision is to become an
“essential” infrastructure company and a leader in end-user computing,
software-defined data center solutions, data management, virtualization,
IoT (Internet of Things), and cloud-based software. Specific tenets of
Dell’s go-to-market strategy include:

  • Enhancing coordination across all segments of business.
  • Bolstering synergy across differentiated products and solutions
  • Executing on current business models.
  • Balancing liquidity, profitability, and growth.


Dell carries a recognizable brand that has a top presence in healthcare
and education, two areas where IT spending can outstrip other enterprise
sectors. The company has a diverse portfolio across multiple successful
brands, such as EMC and Secureworks. These assets give Dell versatility,
with market leadership in a number of niche categories. The company
believes that it creates value with “significant upside.” In particular,
the company looks to three IT industry dynamics from which it draws
strength and believes make it uniquely positioned to capitalize:

  • IT architectural complexity
  • Digital transformation imperative
  • Strategic vendor consolidation

Dell is the leading PC vendor in the US1 and #3 worldwide2
behind Lenovo and HP.

Table 1 looks at strengths for its reporting groups.

Table 1. Strengths by Group
Client Solutions Group Infrastructure Solutions Group
  • Fiscal year 2022 saw record revenue of $61.5 billion, up 27
    percent versus the prior year.
  • Commercial revenue increased 29 percent primarily due to an
    increase in sales across the majority of its commercial
  • Consumer revenue increased 23 percent on an increase in units
    sold due to strong demand across the majority of its consumer
    product offerings.
  • Full-year operating income was $4.4 billion, a 31 percent
    increase versus the prior year.
  • Dell PC as a Service offering combines hardware, software,
    lifecycle services, and financing into one all-encompassing
    solution that provides predictable pricing per seat per month.
  • Approximately half of revenues generated by sales in the
  • Net revenue increased in all regions during fiscal 2022.
  • FY 2022 revenue was $34.4 billion.
  • Full-year operating income reached $3.7 billion.
  • Strengths in server, storage, and virtualization software
    solutions provide customers with leading converged and
    hyper-converged solutions to accelerate IT transformations with
    scalable integrated solutions.
  • Approximately half of revenue generated by sales in the


General risk factors include competitive pressures; occasional reliance
on third-party partners; adverse global economic conditions, especially
effects of the continued COVID-19 pandemic and resulting supply chain
issues; challenges related to transforming into an “essential”
infrastructure solutions provider; potential holdups related to future
acquisitions; and cost efficiency-related issues.


Dell believes that, moving forward, it can continue to offer the
flexibility required by customers. “We’re seeing increased adoption of our
portfolio delivered as-a-service through flexible consumption solutions,”
noted CFO Tom Sweet. The company, in particular, anticipates continued
execution of its strategy, winning in its consolidating markets, and
sustained investment in the long-term as drivers of value creation.

Product Lines

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Dell Technologies designs, develops, manufactures, markets, sells, and
supports a wide range of products and services. The company is organized
into two business units – Client Solutions Group and Infrastructure
Solutions Group – and also holds full or partial ownership over a number
of different brands, including Virtustream and Secureworks.

Table 2 outlines some of Dell Technologies’ major offerings.

Table 2. Product Suite
Business Principal Products
Dell Includes cloud-based products and
services, converged infrastructure, data protection, data storage,
hyperconverged infrastructure, networking, and other products.
  • Client Solutions Group
Branded hardware such as desktop PCs,
notebooks, and tablets; branded peripherals, including monitors,
printers, and projectors, and third party software and peripherals
  • Infrastructure Solutions Group
Cloud and Big Data products and services;
traditional and “next generation” storage products; servers;
networking products; and attached software, peripherals, and
Virtustream Cloud, software, and managed services
Secureworks Information security solutions

Major Competitors


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Mergers, Acquisitions, and Divestitures

Dell Technologies
has completed the spin-off of its 81 percent equity ownership of VMware
Inc. The spin-off creates two standalone companies that the company says
are “positioned for growth in the data era.” Dell Technologies and VMware
will retain a “strong and unique commercial agreement that preserves the
most valuable parts of the companies’ relationship,” such as the
co-development of critical solutions and alignment on sales and marketing
activities, while allowing strategic flexibility. VMware will continue to
use Dell Financial Services to help its customers finance their digital
transformations. Michael Dell will remain chair and chief executive
officer of Dell Technologies, as well as chair of the VMware board. The
VMware board of directors is unchanged.

Dell Technologies
announced that it is taking two steps to consolidate its business
operations in Taiwan. First, operations of EMC Computer Systems (FE)
Limited, Taiwan Branch will be transferred to Dell BV., Taiwan Branch with
Dell BV, Taiwan Branch assuming all rights, obligations, and liabilities.
Second, Hong Kong-based E-Anxin Computer Systems Far East Co., Ltd. Taiwan
Branch will transfer its business to the Netherlands-based Dell Enterprise
Co., Ltd. Taiwan Branch. Both moves are being made in order to enhance
competitiveness and optimize the quality of services. The transfers will
take effect on August 1, 2021.

Francisco Partners, a global investment firm that specializes in
partnering with technology businesses, and TPG Capital, the private equity
platform of global alternative asset firm TPG, have entered into a
definitive agreement with Dell
to acquire Boomi, Dell’s cloud-based integration
platform as a service (iPaaS). The cash transaction is valued at $4
billion and is expected to close by the end of 2021, although specific
terms of the agreement were not disclosed.

Dell Technologies
is planning to spin-off its ownership interest in VMware. The transaction
will result in two standalone companies and is expected to close during
the fourth quarter of calendar 2021. Conditions required to complete the
spinoff include receipt of a favorable IRS private letter ruling and an
opinion that the transaction will qualify as generally tax-free for Dell
Technologies shareholders for US federal income tax purposes. The company
says that Dell and VMware will enter into a commercial agreement that will
preserve the companies’ “unique and differentiated approaches to the
co-development of critical solutions and alignment on sales and marketing
activities.” “By spinning off VMware, we expect to drive additional growth
opportunities for Dell Technologies as well as VMware, and unlock
significant value for stakeholders,” said Michael Dell, chairman and chief
executive officer of Dell. Upon completion of the spin-off, Michael Dell
will remain chairman and CEO of Dell Technologies, as well as chairman of
the VMware board. Zane Rowe will remain interim CEO of VMware, and the
VMware board of directors will remain unchanged.

Alliances and Joint Ventures

Dell Technologies
and Salesforce have signed a significant multi-year agreement to create a
centralized infrastructure to support global growth across more than 60
Salesforce data centers serving 230 countries and hundreds of thousands of
customers. Salesforce is looking to extend its business from approximately
$26.5 billion in FY22 to approximately $31 billion for FY23 and is working
with Dell to provide a pivotal on-premises platform to control and manage
workloads and data across its own data centers and public cloud partners.
The deal will see Salesforce centralize its cloud-based resources on a
platform built on Dell servers that includes more than 1,500 Dell storage

Dell Technologies
and Amazon Web Services (AWS) have announced the launch of Dell EMC
PowerProtect Cyber Recovery for AWS to help securely protect and isolate
data away from a ransomware attack. Dell EMC PowerProtect Cyber Recovery
for AWS allows AWS customers to resume normal business operations quickly
and confidently after a cyberattack. The solution moves a customer’s
critical data away from the attack surface, physically and logically
isolating it with a secure, automated operational air gap. Unlike standard
backup solutions, this air gap locks down management interfaces, requiring
separate security credentials and multi-factor authentication for access.


Dell Technologies
and GE are extending their relationship to enable GE to manage its IT
infrastructure through an “as-a-Service” model and more easily scale
across 170 countries. Using an on-premises cloud from Dell Technologies,
GE plans to meet business demand and become more agile by quickly
transitioning IT resources without a major reorganization of its
infrastructure. The private cloud approach will help GE create a seamless
application owner experience with automated provisioning and data services
that speeds the deployment of applications and services. GE will be using
the Dell Technologies APEX portfolio to quickly rebalance workloads across
its business units, without creating a significant impact on its
businesses and spending.

Dell Technologies
has expanded it collaboration with global digital infrastructure company
Equinix to broaden availability of Dell Technologies APEX via Equinix
International Business Exchange data centers. With Dell-managed
infrastructure and Platform Equinix, organizations will be able to meet
unpredictable IT and storage requirements more efficiently when
subscribing to APEX Data Storage Services at an Equinix location. Through
the combination of Dell’s infrastructure and Equinix’s global footprint of
more than 220 data centers across five continents and digital ecosystem of
more than 10,000 companies, customers can benefit from a hybrid cloud
environment with the ability to shift to an OpEx budget model. Customers
pay for what they use, with a single-rate and no overage fees, and will
know how much IT is used each month. Companies can order nearly any
capacity of block and file storage at a variety of performance levels,
simplifying how they consume storage infrastructure.

Dell Technologies
is helping the United States Senate Federal Credit Union (USSFCU)
modernize its technology infrastructure and transition to a co-located,
fully dedicated private cloud to provide faster network capabilities to
power its business. USSFCU’s new dedicated private cloud will help the
credit union deliver financial services and power mission critical
workloads such as check imaging, document management, file services, and
back-up archiving to meet the rising demand for new services and a faster
overall customer experience. Dell previously worked with USSFCU to provide
capabilities to automate repetitive tasks, rapidly roll out new services,
improve latency, and make its system easier for employees to use. USSFCU
also uses other Dell Technologies solutions across its environment,
including Dell EMC PowerEdge servers and Dell EMC PowerSwitch open
networking switches.

Personnel and Organizational

Dell Technologies
announced that Chuck Whitten will join the company as co-chief operating
officer (co-COO), effective August 16, 2021. Whitten joins vice chair and
co-COO Jeff Clarke and will report directly to CEO Michael Dell. Whitten
has worked at Bain & Company for the past 22 years. with the last
decade focused exclusively on the technology sector. In that role, he
worked alongside Dell leadership to help shape the company’s strategy and
growth initiatives.

Dell Technologies
announced the establishment of a Global Innovation Hub (GIH) in Singapore,
a first-of-its-kind innovation center located outside of the company’s
global headquarters in the United States. Supported by Digital Industry
Singapore (DISG), the GIH will focus on advancing multiple growth areas
for digital transformation including augmented/mixed reality, data
analytics, cloud-native, cybersecurity, and edge computing. It is also
home to a specialized team responsible for enhancing user experiences
through innovation. In addition, the hub houses existing R&D
facilities in Singapore such as the Singapore Design Centre that is
responsible for global product design and development of key product
categories such as monitors and client peripherals. It also includes a
hardware prototyping lab dedicated to product design and innovation, and
an Artificial Intelligence Experience Zone – a catalyst for AI
understanding and adoption.


Dell Technologies
released financial results for its fiscal 2023 second quarter. Revenue was
a second quarter record of $26.4 billion, up nine percent, driven by
growth across both the Client Solutions Group (CSG) and Infrastructure
Solutions Group (ISG). Operating income was $1.3 billion, up 25 percent,
representing 4.8 percent of revenue, and net income from continuing
operations was $506 million. CSG delivered second quarter record revenue
of $15.5 billion, up nine percent year-over-year. Commercial revenue was
$12.1 billion, a 15 percent YOY increase, and Consumer revenue was $3.3
billion, down percent from the year-ago quarter. ISG had record second
quarter revenue of $9.5 billion, up 12 percent, its sixth consecutive
quarter of year-over-year growth. Storage revenue was $4.3 billion, up six
percent, with growth across the portfolio and demand strength in high-end
storage and the mid-range PowerStore. Servers and networking revenue was
$5.2 billion, up 16 percent YOY. Operating income for the sector was $1
billion or approximately 11 percent of Infrastructure Solutions Group

Dell Technologies
announced results for its fiscal 2023 first quarter, with revenue reaching
a first quarter record of $26.1 billion (up 16 percent). The company’s
operating income was $1.6 billion, a 57 percent increase year-over-year,
and net income from continuing operations was $1.1 billion, up 62 percent.
The Infrastructure Solutions Group delivered record first quarter revenue
of $9.3 billion with storage revenue hitting $4.2 billion (up nine
percent) and servers and networking revenue at $5 billion (up 22 percent
year-over-year). Operating income was $1.1 billion or approximately 11.7
percent of the group’s revenue. Client Solutions Group also had record
first quarter revenue of $15.6 billion, up 17 percent year-over-year.
Performance was driven by continued strength in commercial PCs ($12
billion, a 22 percent YOY increase). Operating income for the group was
$1.1 billion, or approximately 7.2 percent of its revenue.

Fiscal fourth quarter and full-year results were released by Dell
, showing record FY22 revenue of $101.2 billion, up 17
percent over the prior year. The company attributed the growth to record
demand, strong execution, continued growth across all business units, and
record PC shipments. Fourth quarter revenue was reported up 16 percent to
$28 billion with operating income of $1.6 billion (up 13 percent) but a
net loss from continuing operations of $29 million.

FY 2022 third quarter results from Dell
showed record revenue of $28.4 billion, up 21 percent,
driven by growth in all business units, customer segments, and
geographies, as well as broad strength across commercial PCs, servers, and
storage. Operating income was a third quarter record of $1.3 billion, a 19
percent increase over the same period the prior year, and net income was
$3.9 billion. Net cash from operating activities was $3.3 billion. The
Client Solutions Group also hit a record for the quarter with revenue up
35 percent to $16.5 billion and operating income at $1.1 billion, up 14
percent. Commercial revenue was a record $12.3 billion, up an
unprecedented 40 percent, and consumer revenue was also a record $4.3
billion, up 21 percent. The Infrastructure Solutions Group had its third
consecutive quarter of positive year-over-year growth with revenue at $8.4
billion (up five percent), as customers accelerated IT investments.
Storage revenue was $3.9 billion and servers and networking revenue was
$4.5 billion. Meanwhile, in its final quarter of reporting through Dell
before its spinoff, VMware revenue was $3.2 billion for the third quarter,
up 10 percent, driven by broad-based strength across its diverse product
portfolio. Operating income for the quarter was $837 million, or 26.3
percent of VMware’s revenue.

Showing strong results with growth in all its business units, Dell
announced record financial results for its fiscal 2022
second quarter with revenue up 15 percent $26.1 billion, generating
operating income of $1.4 billion (a 21 percent increase over the same
period in the prior year). Client Solutions Group revenue for the quarter
was up 27 percent to a record $14.3 billion with commercial client revenue
at $10.6 billion (up 32 percent) and consumer revenue a second-quarter
record of $3.7 billion (up 17 percent). Infrastructure Solutions Group
revenue was $8.4 billion, up three percent, as customers accelerated IT
investments with a focus on multi-cloud solutions. Servers and networking
revenue was $4.5 billion (up six percent) and storage revenue was $4.0
billion (down one percent). VMware revenue was $3.1 billion for the second
quarter, up eight percent with operating income for the quarter reaching
$849 million, or 27 percent of the division’s revenue.


1 “Gartner Says Worldwide PC Shipments Declined 5% in Fourth
Quarter of 2021 but Grew Nearly 10% for the Year” (press release).
Gartner. January 12, 2022.

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