DELL TECHNOLOGIES

BRINGING THE CLOUD TO

THE GROUND

GROUP MEMBERS:
AKASH GHOSH -1303 DEEPSHIKHA -1315
ANIRUDH -1306 SHUBHANGI PATIL-1353
CENTRAL THEME
Acquisition of EMC and its
independent subsidiary VM Ware by
Dell.
Sales and Go to market strategy.

CLOUD COMPUTING
Delivery of on demand computing
services on pay as you go basis.
Public cloud system
Private cloud system
EVALUATION OF IT INDUSTRY:
THE MARCH TO DIGITAL TRANSFORMATION

In 2000s, Companies mamanged their IT

needs by apps that run on client server
systems.
In 2010, Cloud services began to gain
traction.

THREE LEVELS OF SERVICE

Infrastructure as a service (IAAS)
Platform as a service
Software as a service
THE MERGER
On October 12, 2015, Dell, an information technology
company, announced its intent to buy EMC for $67B
in the largest tech acquisition in history.

STORAGE
CAPACITY FROM
EMC

CLIENT SERVER DELL

CAPABILITY OF TECHNOLOGIES
DELL

VIRTUALISATION
AND CLOUD
SOFTWARE
 Customer Expanded
Base Capabilities
The merger extends the customer The new company will have broader
base of both companies. capabilities that significantly expand
Benefits are expected to accrue from its reach. Strategic product
leveraging of the small and mid- rationalization and integration will

POTENTIAL market strengths of Dell

combination with EMC’s enterprise
presence.
in play a huge role in advancing Dell-
EMC to become their customers’
enterprise technology partners.

SYNERGIES
Privatization Cloud
Advantage Computing
Privatization brings distinct There is tremendous pressure for and
advantages to the combined interest in ‘software-defined
companies. During the merger infrastructure and software-defined
process it provides greater flexibility, data centers’. The merger will help
more freedom in action, as well as Dell-EMC compete, if they get the
relief from some pressures of public solutions, the economics and the
companies. structure right.
 2017
CHALLENGES
MERGER MAYHEM Potentiel chanllenges of the Merger
Due to the size of the merger, it is very
likely that it will be a prolonged, difficult
ThE lack of overlap among the two customer
effort for the combined companies
bases was one of the aspects that made the
acquisition so attractive, and yet, it had
BIGGER AND BUILDING created a major challenge FOR THE TRANSITION
TEAM
Added to the obvious differences in size,
the cultures are also radically different,
as are the management styles of Dell and
Tucci. Can Dell-EMC executives and staffs
integrate seamlessly.
 Business Model
DELL (PC's Ltd.) Direct strategy to corporates first and

BACKGROUND
then later to consumers

Founded by Michael Dell in 1984 Competitors

at University of Texas at Austin HP,Compaq,Apple and IBM

Corporate Advantage
Reduced distribution costs, greater control
and customised product
DELL World's Largest Producer of

EARLY PCs
A vast global supply chain

2000s procuring parts directly from

vendors and assembling in
large scale factories.
Tremendous production
efficiency and reduced cost
due to economies of scale.
ROIC and ROE at upward of
50%
 Comoditization of PCs
DELL
Supply moved to China and Taiwan alongwith

MID financial recession of 2008.

HP bought Comaq, Apple diversified and

2000s occupied niche premium segment and IBM

selling to Lenovo.
New cheapercompetitors emerged from
Taiwan like Acer .
Dell too evolved by expanding the portfolio
but was not immune to market downturns
and its direct strategy though proven in
mature markets failed in emerging Asian
market with rapid growth
 RESPONSE
Shifted manufacturing to low cost places like Mexico,China,Poland,etc.
Contract Manufacturing to reduce cost
Acquistions to become end to end technology solution provider.
Still played central role inspecifying and procuring key component from global supply
chain
Dell's share kept rapidly decreasing and Michael Dell felt company was undervalued
To increase flexibility and re-energise the company was made private.
Increased RnD spending and more doubled sales specialists with technical training.
 GTM OF DELL AND EMC INDIVIDUALLY
DELL EMC

DIRECT SELLING
THROUGH CUSTOMER RELATIONSHIP SELLING
SEGMENTATION

COMBINED GTM
STRATEGY AFTER
MERGER
Dell Customer Segmentation
Large Enterprise (5000+ employees) -30% revenue
Medium sized businesses (100-5000 employees)-25%
revenue
Small Business (<100 employees)-25% revenue
Consumers-20% revenue
DTC almost generatedhalf of Dell's sales revenue
2015 Dell shifted to AMO based segmentation with
acquisition and retain and develop accounts
THANK YOU