Dell elaborates on US$80bn revenue goal

7 Apr 2005

AUSTIN: Dell has outlined its intention to grow from a US$49bn company to one with revenues of US$80bn over the next three to four years.

The company also said that revenue for the first quarter of its current financial year shows growth of 16pc from the same quarter one year ago, to approximately US$13.4bn.

Dell CEO Kevin Rollins said: “Our growth and profitability are based on a disciplined approach to defining new product and service categories, accelerating growth in existing businesses, and extending the value we create for customers in all of those areas.”

Dell’s growth plans are centred on four technology areas: network servers, storage systems, printing and imaging, and mobile computing. In those product areas, as well as regions outside the United States, Dell said it expects to continue to grow at rates even faster than its overall average.

Added to the technology are the services around those products, itself a rapidly growing area of Dell’s business. Joe Marengi, Dell senior vice president, Americas, spoke of the “evolution of Dell from being a box company to being a trusted IT solutions provider”. Over the past six years, Dell’s IT services arm has shown a compound annual growth rate of 30pc and it grew by 34pc in its most recent financial year. “We see nothing that would inhibit us from continuing that growth,” said Marengi.

Dell’s goal is to persuade the market that it can deliver; the company claimed that it can bring innovation to an IT services sector that is “relatively stagnant”, according to Steve Felice, vice president and general manager of Dell’s US corporate business group. “We’re definitely seeing a convergence into a solution that looks at the hardware and the service side, because if organisations want to get true value, the thing to do is to bring them together.”

By Gordon Smith