Dell Technologies: Opportunity, growth and value creation

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One year ago, I used this platform to discuss Dell Technologies’ vision to become the most essential technology company for the data era. To say it has been a consequential year is an understatement. I am proud to say that our team has continued to deliver extraordinary results for our customers, reflected in our record first quarter financial results.

But what 2020 made clear to the world is the important role technology plays in keeping us connected, working, learning and living. From now on, technology will accelerate, bringing us closer to our vision and creating differentiated value for our customers, partners, team members, shareholders and communities.

Industry opportunity
Consider the macro trends in the industry. The total IT market is a multi-trillion how to get usa phone number dollar opportunity. Today we serve only a portion of it and have many opportunities to grow our core businesses and move into new and emerging areas of the industry.

More importantly, the sector is growing. Companies around the world are ramping up their digital transformation programs, and this is driving a sustained and broad technology investment cycle, fueled by the do-anything-from-anywhere economy. According to IDC, IT spending is projected to grow by $250 billion in 2021 alone.

If you adjust the opening a little to our core businesses, the opportunity is even clearer. Our potential market is growing twice as much as the gross domestic product in the next four years.

In 2019, the total addressable market (TAM) for the broader PC ecosystem was approximately $600 billion. Fast forward to calendar year 2025 and that jumps to a projected $750 billion thanks to investments in a hybrid and remote workforce and increasing systems per household.

The same is true for infrastructure. The 2019 TAM was about $150 billion; we expect it to be $200 billion by 2025. That means growth in areas like servers , storage and networking, where we are strong, and hyperconverged infrastructure, where we are innovating for the future.

The past year also reinforced our view that the future is multi-cloud and our customers need a partner like Dell to help them navigate the world of cloud operating environments. We are no longer in a technology era that rewards customer-vendor relationships. Customers need a trusted partner with the experience, portfolio and ecosystem to help them bring it all together and make it work for their competitive advantage.

Focused on growth
Our long-term growth strategy has not changed, but as we have always done, we continue to evolve and focus on growth areas when and where they arise. We see a tremendous opportunity to drive growth, and therefore create value for our stakeholders, by focusing on three key areas:

Consolidating, growing and modernizing our core businesses – PCs, servers and storage. In our first fiscal quarter, all of our core businesses grew, and importantly, we gained share in midrange storage – a target market for us as we look to expand our buyer base and storage leadership. We also launched our first APEX offerings – our portfolio of IT-as-a-Service solutions. The APEX brand marks a shift for Dell as we reimagine and modernize our business around customer outcomes, but that doesn’t mean we’re new to as-a-Service. We’ve been helping customers like GE deliver solutions in this type of model that are making the world run more efficiently, reliably and securely.


Innovate, integrate and partner to build the technology ecosystem of the future. This is based on our philosophy of customer-driven innovation and choice and, together with our size and scale, is a competitive advantage for Dell. When we talk about the ecosystem of the future, it also includes innovation and integration through our ecosystem of value-added partnerships, such as our new collaboration with Equinix , an infrastructure company that works with us to offer a public cloud experience to customers, while maintaining control over their own data.
Seize high-value growth opportunities where.

we have a unique right to win, such as with hybrid and private cloud, edge computing , telecommunications, and data management. Collectively, these areas expand our potential TAM by another $75 billion today and these markets are growing by mid-decade. We’ve recently made headlines for our new solutions at the edge and for our open, cloud-native telecommunications infrastructure and ecosystem . These are the first of many solutions to come to help customers such as Vodafone and DISH Network . Gartner predicts that 75% of enterprise data will be created and processed outside of the data center or cloud by 2025. It’s the next technology battleground and we’re positioned to lead in this space with our global reach and expertise in distributed computing capabilities.
Shareholder value