About Dell Technologies
Dell Technologies Inc. (Dell Technologies) is a leading global end-to-end technology provider that designs, develops, manufactures, markets, sells, and supports a wide range of comprehensive and integrated solutions, products, and services. Dell Technologies offerings include servers and networking, storage, cloud solutions, desktops, notebooks, services, software, and third-party software and peripherals. Dell Technologies helps organizations build their digital futures and individuals transform how they work, live, and play. The company provides customers with one of the industry’s broadest and most innovative solutions portfolio for the data era, including traditional infrastructure and extending to multi-cloud environments. The company’s differentiated and holistic IT solutions benefit its results and enable it to capture revenue growth as customer spending priorities evolve. Dell Technologies’ integrated solutions help customers modernize their IT infrastructure, manage and operate in a multicloud world, address workforce transformation, and provide critical solutions that keep people and organizations connected. The company is helping customers accelerate their digital transformations to improve and strengthen business and workforce productivity. With its extensive portfolio and its commitment to innovation, the company offers secure, integrated solutions that extend from the edge to the core to the cloud. Dell Technologies operates globally in approximately 180 countries, supported by a world-class organization across key functional areas, including technology and product development, marketing, sales, financial services, and services. The company’s go-to-market engine includes a 31,000-person direct sales force and a global network of approximately 240,000 channel partners. The company employs approximately 35,000 full-time service and support professionals and maintains approximately 2,200 vendor-managed service centers. The company also manages a world-class supply chain at significant scale. Strategy The company helps customers address their evolving IT needs and their broader digital transformation objectives as they embrace today’s multicloud world. The key elements of the company’s strategy are to grow and modernize its core offerings in the markets in which it predominantly competes; and pursue attractive new growth opportunities, such as Edge, Telecom, data management, and as-a-Service consumption models. The company intends to continue to execute its business model and position it for long-term success while balancing liquidity, profitability, and growth and keeping its purpose at the forefront of its decision-making: to create technologies that drive human progress. Segments The company operates through two segments, Infrastructure Solutions Group and Client Solutions Group. Infrastructure Solutions Group (ISG) ISG enables the company’s customers’ digital transformation with solutions that address the fundamental shift to multicloud environments, machine learning, artificial intelligence, and data analytics. ISG enables customers to simplify, streamline, and automate their cloud operations. ISG solutions are built for multicloud environments and are optimized to run cloud native workloads in both public and private clouds, as well as traditional on-premise workloads. The company’s comprehensive storage portfolio includes traditional, as well as next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. The company has simplified its storage portfolio and continues to make enhancements to its storage offerings that it expects will drive long-term improvements in the business. The company’s server portfolio includes high-performance rack, blade, and tower servers. The company’s servers are designed with the capability to run high value workloads across customers’ IT environments, including artificial intelligence, machine learning, and edge workloads. The company’s networking portfolio helps its business customers transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes. The company’s strengths in server, storage, and virtualization software solutions allow it to offer leading converged and hyper-converged solutions, enabling its customers to accelerate their IT transformation with scalable integrated solutions instead of building and assembling their own IT platforms. ISG also offers software, peripherals, and services, including configuration, support and deployment, and extended warranties. Approximately half of ISG revenue is generated by sales to customers in the Americas, with the remaining portion derived from sales to customers in the Europe, Middle East, and Africa region (EMEA) and the Asia-Pacific and Japan region (APJ). Client Solutions Group (CSG) CSG includes branded PCs, including notebooks, desktops, and workstations and branded peripherals, including displays and docking stations, as well as third-party software and peripherals. CSG also includes services offerings, including support and deployment, configuration, and extended warranties. The company’s CSG offerings are designed with its customers’ needs in mind and it seeks to optimize performance, reliability, manageability, design, and security. The company’s commercial portfolio provides its customers with solutions centered around flexibility to address their complex needs, such as IT modernization, hybrid work transformation, and other critical needs. Within its high-end consumer offerings, the company provides its customers’ with powerful performance, processing, and end-user experiences. Approximately half of CSG revenue is generated by sales to customers in the Americas, with the remaining portion derived from sales to customers in EMEA and APJ. The company’s other businesses primarily consist of its resale of standalone offerings of VMware, Inc. (individually and together with its subsidiaries, VMware), referred to as VMware Resale, and offerings of SecureWorks Corp. (Secureworks). VMware Resale consists of the company’s sale of standalone VMware offerings. Under its Commercial Framework Agreement with VMware, Dell Technologies continues to act as a key channel partner for VMware, reselling VMware’s offerings to its customers. This partnership is intended to facilitate mutually beneficial growth for both Dell Technologies and VMware. VMware works with customers in the areas of hybrid and multicloud, modern applications, networking, security, and digital workspaces, helping customers manage their IT resources across private clouds and complex multicloud, multi-device environments. Secureworks (NASDAQ: SCWX) is a leading global cybersecurity provider of technology-driven security solutions singularly focused on protecting its customers by outpacing and outmaneuvering the adversary. The solutions offered by Secureworks enable organizations of varying size and complexity to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats. The company’s offerings are continually evolving in response to customer needs. As a result, reclassifications of certain products and services solutions in major product categories may be required. Dell Financial Services DFS supports the company’s businesses by offering and arranging various financing options and services for its customers globally. DFS originates, collects, and services customer receivables primarily related to the purchase or use of its product, software, and services solutions. The company also arranges financing for some of its customers in various countries where DFS does not operate as a captive entity. The company further strengthens customer relationships through flexible consumption models, including utility, subscription, and as-a-Service models, which enable it to offer its customers the option to pay over time to provide them with financial flexibility to meet their changing technological requirements. Research and Development (R&D) The company has a global R&D presence, with total R&D expenses of $2.8 billion for the year ended February 3, 2023 (Fiscal 2023). Geographic Operations The company has operations and conducts business in many countries located in the Americas, Europe, the Middle East, Asia, and other geographic regions. To increase its global reach, the company continues to focus on emerging markets outside of the United States, Western Europe, Canada, and Japan. The company continues to view these geographical markets, which include the vast majority of the world’s population, as a long-term growth opportunity. Accordingly, the company pursues the development of technology solutions that meet the needs of these markets. Seasonality The company’s sales within the Americas are typically stronger in the second and fourth fiscal quarters, with sales in EMEA typically stronger during the fourth fiscal quarter (year ended February 3, 2023). Sales and Marketing The company’s sales and marketing efforts are organized around the evolving needs of its customers. The company’s unified global sales and marketing team has created a go-to-market organization that is customer-focused, collaborative, and innovative. The company generally organizes its go-to-market operations with a focus on geographic and customer segments, which encompass large global and national enterprises, public institutions that include governmental agencies, educational institutions, healthcare organizations, small and medium-sized businesses, and consumers. Go-to-Market Strategy — The company sells products and services directly to customers and through other sales channels, which include value-added resellers, system integrators, distributors, and retailers. The company manages its many channels to offer a unified customer experience. In addition to its direct business model, the company uses its network of channel partners to sell its products and services, enabling it to efficiently serve a greater number of customers. The Dell Technologies partner program contributes to the development of channel sales by providing appropriate incentives to encourage sales generation. The company also facilitates access to third-party financing to help its channel partners manage their working capital. Large enterprises and public institutions — For large enterprises and public institutions, the company maintains a field sales force throughout the world. Dedicated account teams, which include technical sales specialists, form long-term relationships to provide the company’s largest customers with a single source of assistance, develop tailored solutions for these customers, position the capabilities of Dell Technologies, and provide it with customer feedback. For these customers, the company offers several programs designed to provide single points of contact and accountability with dedicated account managers, special pricing, and consistent service and support programs. The company also maintains specific sales and marketing programs targeting federal, state, and local governmental agencies, as well as healthcare and educational customers. Small and medium-sized business and consumers — The company markets its products and services to small and medium-sized businesses and consumers through various advertising media. To react quickly to its customers’ needs, the company tracks its Net Promoter Score, a customer loyalty metric that is widely used across various industries. Net Promoter Score is a trademark of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld. The company also engages with customers through its social media communities on its website and in external social media channels. Patents, Trademarks, and Licenses As of February 3, 2023, the company held a worldwide portfolio of 20,693 granted patents and 8,045 pending patent applications. The company has used, registered, or applied to register certain trademarks and copyrights in the United States and in other countries. Dell Technologies, DELL, Dell EMC, Alienware, and Secureworks word marks and logo marks in the United States are material to the company’s operations. The company has entered into software licensing agreements with other companies. The company also licenses certain technology and intellectual property from third parties for use in its offerings and processes, and license some of its technologies and intellectual property to third parties. Government Regulation The company’s business is subject to regulation by various U.S. federal and state governmental agencies and other governmental agencies. Such regulation includes the activities of the U.S. Federal Communications Commission; the anti-trust regulatory activities of the U.S. Federal Trade Commission, the U.S. Department of Justice, and the European Union; the consumer protection laws and financial services regulation of the U.S. Federal Trade Commission and various U.S. governmental agencies; the export regulatory activities of the U.S. Department of Commerce and the U.S. Department of the Treasury; the import regulatory activities of the U.S. Customs and Border Protection; the product safety regulatory activities of the U.S. Consumer Product Safety Commission and the U.S. Department of Transportation; the health information privacy and security requirements of the U.S. Department of Health and Human Services; and the environmental, employment and labor, and other regulatory activities of a variety of governmental authorities in each of the countries in which the company conducts business. The company is subject to provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act intended to improve transparency and accountability concerning the supply of minerals originating from the conflict zones of the Democratic Republic of the Congo or adjoining countries. History The company was founded in 1984. It was incorporated in 2013. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in 2016.
