Dell seeks share of emerging markets claimed to be worth more than $650 billion





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Image: Dell Technologies

Chuck Whitten, co-chief operating officer of Dell Technologies, has outlined that the company will pursue a “classic” two-pronged growth strategy in FY23 and beyond.

On the one hand, the company plans to consolidate and modernize its current core businesses — PC, computing and networking, storage and Apex — which were worth about $670 million a year ago, and on the other it will “aspire to logical new growth opportunities that we have a unique right to win,” Whitten said at a news conference Tuesday.

Specifically, he pointed to areas where Dell sees growth opportunities in markets such as edge, telco, data management, multi-cloud service delivery, security, and AI and ML, claiming there is “more than $650 billion in total addressable market.”

“They’re also markets where the competitive advantages we’re building within our core businesses give us the right to win,” Whitten said.

But Dell’s move into these markets is far from a surprise as the tech giant has slowly increased its presence in each respective market. Last month, for example, Dell rolled out a series of new tools and services to help telecom providers take advantage of more cloud-native architectures. Before that, it continued to expand its edge portfolio with additional tools to help enterprises with data collection, real-time analytics, and multi-cloud deployment at the edge.

According to Whitten, part of the growth strategy will include mergers and acquisitions (M&A).

“One of the benefits of our $16.5 billion debt paid off last year — and the journey we’ve taken over the years to become investment grade — is that we have the financial flexibility to capital allocation strategy, including returning capital to shareholders, as well as pursuing mergers and acquisitions, and we are active in the market to consider mergers and acquisitions,” he said.

However, Whitten assured that Dell’s approach to any M&A deal will be a strategic one that will help “boost our innovation and talent agenda” in its growth markets, rather than major transformation deals like the one where Dell acquired EMC.

“We will be patient. We realize that those markets in particular have very high valuations today, or at least very high valuations recently, and we are committed to taking positive steps for shareholders over the long term,” Whitten said.

“So you’ll definitely see us doing M&A in the coming years. We think it’s an important part of our growth strategy, but we’re going to be incredibly disciplined when we do it.”

In addition to Whitten, Dell Technologies APJ, president of world cities, spoke on Tuesday Amit Midha, who spoke about how “being the most ethical company” is also part of the company’s future goals, especially if its 2030 “moonshot” goals include social media. want to make an impact.

“We want to make sure we’re leading the way on sustainability, and that’s where one-to-one recycling re-use comes in,” he explained.

“For each device, we ensure that one device is recycled or reused. As a result, we will also continue to increase the number of recycled or renewed components in our products. Then, of course, we will conduct our activities in a way that is CO2 neutral. Today Our solar panel installation at the Malaysia plant provides north of 25% of the plant needs and we will continue to increase that.”

Midha also spoke about how Dell’s SheCodes and Mentor Connect programs help the company ensure it can achieve equal gender representation across the company.

“I was proud to launch SheCodes last year, which has already benefited 150,000 girls in India and we will continue to do more. We are also creating Mentor Connect. This is a cross-country mentorship program for women in tech and has in Malaysia and Singapore has gained momentum,” he said.

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