Dell Extends Lead as Premier Provider of Computing and Services for the Internet
Company Delivers "E"-Infrastructure Products, Services, Expertise and Experience For Service Providers, Dot-coms and Clicks-based Enterprises, Consumers
NEW YORK--(BUSINESS WIRE)--April 5, 2000-- Dell (Nasdaq:DELL - news) executives today detailed a comprehensive business strategy -- including new products, services and strategic alliances -- that will enable Dell to capture a growing share of the estimated $370 billion that will be spent by 2003 as companies build out their Internet capabilities.
``The significant degree to which we have transitioned our own business to the Internet has given us a base of expertise our customers have asked us to share with them,' Michael Dell, chairman and chief executive officer, told a New York City news briefing. ``Our success gives us the credibility to be a key partner to other companies as they build their online operations, which include sales, services, support, manufacturing supply chain and other business processes.'
Mr. Dell and other company executives outlined five strategic initiatives to exploit the company's expertise and technology to capitalize on the growth of the Internet:
Infrastructure Computing: Dell today announced PowerApp appliance servers designed for specific Internet infrastructure tasks such as Web serving, caching and load balancing. PowerApp appliance servers, in combination with Dell PowerEdge servers and PowerVault storage products, provide customers a full range of server and storage solutions for building their Internet infrastructures. Service Provider Direct: A set of focused resources, programs and alliances to meet the needs of the emerging Internet service providers, application service providers and Web-hosting providers. New program members include Exodus Communications Inc., Corio Inc. and Navisite Inc. ``E'xpert Services: New and expanded service offerings that help businesses harness the power of the Internet. Dell today announced e-consulting partnerships with Arthur Andersen and Gen3 Partners to help business customers develop and implement their Internet strategies. Universal Access: A drive to enable universal Internet access through a combination of leading-edge devices, connectivity offerings and access choices. This initiative encompasses narrow band services, broadband offerings and wireless products and services for homes and offices. Dell Ventures: Strategic links to companies with technologies, products and services that create breakthroughs for the evolving Internet age. Dell Ventures will provide equity investments and incubation services for selected early-stage private companies to accelerate development.
``We are combining Dell's Internet expertise, and our unique ability to organize resources around distinct customer needs, to create new Web-related capabilities,' Mr. Dell stated. ``The Dell advantage is based on direct relationships, low cost, speed to market and e-commerce expertise as much as it is on Internet hardware, appliances and customers services and support.'
Dell, which already operates one of the world's largest and most profitable e-commerce sites with more than $40 million in sales daily, is the No. 2 supplier worldwide of network servers that are a key component of the Internet infrastructure. During the fourth quarter of last year, Dell PowerEdge servers accounted for 40 percent of industry growth and gained nearly five points of global market share. The company is also a growing provider of network storage systems for the Internet.
Internet commerce worldwide is predicted to grow at a compound annual rate of 100 percent, to almost $2.5 trillion by 2003. Globally, Dell expects companies to spend $370 billion annually on their Internet infrastructures by 2003, much of that for servers and storage products.
``These numbers are staggering and every company is trying to figure out how to position itself to survive and take advantage of this explosion of activity by building its Internet infrastructure,' he said. ``Soon there will be no real difference between Internet-based companies -- `e' companies -- and traditional businesses. The distinction will be between winners and losers.
``Within this dynamic environment, we believe Dell is the preferred Internet infrastructure company not only because our products and services are at the core of the related build-out, but because we understand, firsthand, how `E' works for commerce and operational efficiencies.'
Mr. Dell also said that the quality of the customer's experience -- more than products or services -- will be the defining source of loyalty in the Internet era.
``As a company founded on one-to-one direct relationships with its customers, Dell understands what customers want from these business relationships. Our success in building one of the world's largest online operations gives us the credibility to be one of the principal partners to other companies as they build their online businesses,' Mr. Dell said.
Dell began its commercial migration to the Internet with the 1994 launch of www.dell.com, and added online sales capabilities two years later. Today Dell, the No. 1 computer systems company in the United States and No. 2 worldwide, is one of the world's largest e-commerce companies with online sales accounting for nearly 50 percent of revenue by the end of its last fiscal year. The site received about 35 million visits in the fourth quarter of last year alone.
More than 40,000 corporate, government and education customers worldwide do business with Dell through individual, tailored Premier Pages hosted at dell.com. The site -- like many other leading Internet destinations -- runs entirely on Dell PowerEdge servers and Dell PowerVault storage products.
About Dell Computer Corporation
Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $25.3 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 210 on the Fortune Global 500 and No. 3 on the Fortune ``most admired' lists of companies. Dell designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at www.dell.com.
Dell, PowerApp, PowerEdge, PowerVault, DellWare and Premier Pages are trademarks of Dell Computer Corporation. |