China / Innovation

Dell to sharpen focus on enterprise solutions in China

By Tuo Yannan ( Updated: 2012-11-05 19:42

The US-based IT giant Dell Corp will place greater emphasis on enterprise solutions in the Chinese market next year to transfer from a hardware company to a solution provider, company executives said on Monday.

Marius Haas, president of Dell Enterprise Solutions, said that in the past three years, the company spent about $12.7 billion on acquisition investment in the enterprise solution industry for 17 companies worldwide, while the US-based company may consider acquiring Chinese companies to boost its local market next year.

According to Hass, Dell’s structure has undergone significant change over the past four years to transition from a pure hardware maker to a solution provider. “In the second quarter this year, about one-third of Dell’s overall global sales revenue came from enterprise solutions, and more than 50 percent of the profit came from enterprise solutions,” he said.

IDC has predicted that shipments in the Chinese PC market will reach about 79 million units, with 9 percent year-on-year growth. The total sales revenue in the Chinese market will reach $7.2 billion.

China, the world’s largest PC market, became Dell’s second-largest enterprise solution market, following the United States. The company held about 24 percent of the server market in the country and Asia-Pacific markets, Hass added.

In China, growth in the storage and network business was about five to eight times faster than globally for the company, and it is considering making unique products including storage and network sectors for the market.

The company’s end-to-end enterprise solution sector had a 12 percent growth rate in the second quarter year-on-year. Haas said the enterprise infrastructure market size will be about $110 billion globally this year, and the Chinese market will keep growing faster than many other regions.

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