Dell Technologies Inc. · NYSE:DELL

Dell Technologies — Investor Day (April 2008)

30 slides from Dell Technologies's investor day presentation, Apr 2, 2008

Slide 3: Safe Harbor
SAFE HARBOR All statements made during these presentations th t relate that l t to t future f t results lt and d eventst are forward-looking statements that are based on our current expectations. expectations Actual results could differ materially from those projected in the forward-looking forward
Slide 4: April 2, 2008 Agenda
APRIL 2, 2008 AGENDA 12:00 – 12:45 pm LUNCH Round Rock Campus PANEL DISCUSSIONS Hosted by 12:45 – 1:45 pm Global Operations Mike Cannon, President, Global Operations 1:45 – 2:00 pm B k Break 2:00 – 3:00 pm Global Services Steve Schuckenbrock, SVP and President, Global Services and CIO 3:00 – 3:15 pm
Slide 6: Landscape Has Changed
LANDSCAPE HAS CHANGED PC Economics Have Changed • Rapid growth and shift to lower selling prices means less absolute dollar cost advantage • Sources of growth have changed (services, small and medium enterprises, consumer, emerging countries) • Direct is advantaged, but by expanding into the channel
Slide 7: Any-to-Any Supply Chain
ANY-TO-ANY SUPPLY CHAIN Develop De elop multiple m ltiple s supply ppl chains to reach customers • Our O supplyl chain h i was b built ilt ffor maximum i customization capability • Optimizing global network to customer needs Design the best PCs for specific customer and d price i segments t • Requir
Slide 8: Product Design and Materials
PRODUCT DESIGN AND MATERIALS D i platforms Design l tf for f specific ifi price i bands b d • Sub segmentation • Increase platforms to match particular customer and price segmentation • Reduce total cost structure at each price segment (e.g., changes to specifications on thermals, LCD panels batteri
Slide 9: Product Manufacturing & Logistics
PRODUCT MANUFACTURING & LOGISTICS Moving away from 100% configure-to-order model to one that includes limited configurability and fixed configurations Moving to optimized product fulfillment • Flexible customer requirements allow us to provide alternate fulfillment models p • Optimizing our global m
Slide 10: World-Class Cost Position
WORLD-CLASS COST POSITION • Global operations is a significant part of $3.0 billion opportunity in annual savings • We will be best in class 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. All rights reserved.
Slide 13: Industry Opportunity
INDUSTRY OPPORTUNITY $1 in Hardware + $2 = $1.2 Trillion on of Additional Spend Infrastructure •Global IT Infrastructure Spend: $1.2T1 •1) Source: Forrester Research and Computer Economics 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. All rights reserved.
Slide 14: Services Should Be…
SERVICES SHOULD BE… •Turn On Now •Simple •Modular •Flexible •Controllable • Subscribe • Configurable • Leverage • Your • Online In • For Your • Ongoing • Terms • One Click • Needs • Innovation 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. All rights reserved.
Slide 15: Global Services Strategy Customizable and Available A La Carte
GLOBAL SERVICES STRATEGY CUSTOMIZABLE AND AVAILABLE A LA CARTE Patch Management Small Office Anti-Virus Package Anti-Spam sponse eed of Pro Online Back-Up Mission Support pp & Recovery Critical Spe Res For IT Asset Data Center C Discovery Package Infrastructure Asset Tracking Consulting Vista Servic
Slide 16: Built on Integrated Service Delivery Platform
BUILT ON INTEGRATED SERVICE DELIVERY PLATFORM Anti-Virus Backup / Recovery Patch Management A-la la--Carte Services License Management Asset Discovery Asset Tracking Remote Event Monitoring Data Migration Proactive Management SaaS Integration Platform Email Continuity & Archiving Vulnerability Scann
Slide 17: Information Available Real Time
INFORMATION AVAILABLE REAL TIME Customer Console A-la la--Carte Services Firewall Remote Event Monitoring Partner Console SaaS Integration Platform NOC / IT Service Desk Dell Console 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. All rights reserved.
Slide 18: Acquisitions Enable Dell to Deliver Value-Added Services Remotely
ACQUISITIONS ENABLE DELL TO DELIVER VALUE-ADDED SERVICES REMOTELY *MessageOne ESMART – ASAP Storage mgmt - A-la la--Carte Services Glasshouse Remote Event Monitoring Silverback SaaS Integration Platform Everdream NOC / IT Service Desk 2008 Dell Equity Analyst Meeting •* Pending acquisition •© 2008 D
Slide 20: Consumer vs. Commercial
CONSUMER VS. COMMERCIAL $6.2 B Global Consumer Actions: Services Business • $700 million business Consumer • Primarily Break/Fix and 11% Warranty • Closely tied to unit growth Commercial 89% • Our goal is to expand service i revenues per unit it Commercial Actions: $ $5.5B Commercial Infrastructure
Slide 21: Businesses That Have Momentum
BUSINESSES THAT HAVE MOMENTUM •$B As Sold Revenue $7 • As Sold services revenue $6 growth doubled to 12% Y/Y in FY08 vs. vs 6% Y/Y in $5 FY07 • Growing as a multiple of $4 hardware with healthy FY06 6 FY07 7 FY08 8 profits Deferred Services Revenue •$B $6 • Deferred services revenue $5 balance up 25
Slide 24: Channel Is a Large Growth Opportunity That Can Be Profitable
CHANNEL IS A LARGE GROWTH OPPORTUNITY THAT CAN BE PROFITABLE 2007 Business Channel Hardware Revenues* Revenues • Global channel revenue ($B) $100B; >$200B w/ services 50 Channel • Majority M j it off opportunity t it ini the th 40 Direct Channel 30 • Growth skewed to emerging countries – 20 13% CAGR
Slide 25: Flexible Channel Strategy Tailored to Customers
FLEXIBLE CHANNEL STRATEGY TAILORED TO CUSTOMERS Ramp 3 3. Regional Partners Create Dell 2. Value Proposition Flexible Fl ibl 1. Engagement Model 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. All rights reserved.
Slide 26: Created Flexible Engagement Model
CREATED FLEXIBLE ENGAGEMENT MODEL Mi i i conflict, Minimize fli t build b ild trust t t and d create t mutually t ll beneficial relationships Program Solution Operations Office Center Center • Qualification • Training • Deal Registration • Partner Registration • Technical Support • Special S i lPPri
Slide 28: Why Dell? Compelling Value Proposition
WHY DELL ? COMPELLING VALUE PROPOSITION Dell Brand Simple and beneficial contract Broad offerings – Desktop – terms Data Center CHANNEL PARTNER SOFTWARE LICENSE MGMT Build-to-Order and Configured g Dell Services Products Credit and trade financing 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. A
Slide 29: Ramp Regional Partners to Double Share Over Time
RAMP REGIONAL PARTNERS TO DOUBLE SHARE OVER TIME •$ $10B channel business today y - will take time to build trust and sign-up partners • Flexible Fl ibl model d l to t best b t reach h global l b l customers t – Partner directly with VARs and SIs in developed countries – May also use distributors in
Slide 30: Q&A Paul Bell
Q&A Paul Bell SVP & President, Americas Greg Davis VP & GM, GM Americas Channels Group Dave Marmonti SVP & President, Europe, Middle East and Africa April 2 2, 2008 2008 Dell Equity Analyst Meeting •© 2008 Dell Inc. All rights reserved.

Dell — Investor Day (April 2008) on 6ix

Dell Technologies — Investor Day (April 2008)

Slide 1: Dell Equity Analyst Meeting

Slide 2: Dell Equity Analyst Meeting

Slide 3: Safe Harbor

Slide 4: April 2, 2008 Agenda

Slide 5: Global Operations

Slide 6: Landscape Has Changed

Slide 7: Any-to-Any Supply Chain

Slide 8: Product Design and Materials

Slide 9: Product Manufacturing & Logistics

Slide 10: World-Class Cost Position

Slide 11: Q&A Mike Cannon

Slide 12: Global Services

Slide 13: Industry Opportunity

Slide 14: Services Should Be…

Slide 15: Global Services Strategy Customizable and Available A La Carte

Slide 16: Built on Integrated Service Delivery Platform

Slide 17: Information Available Real Time

Slide 18: Acquisitions Enable Dell to Deliver Value-Added Services Remotely

Slide 19: High Quality Reports with Detailed Status

Slide 20: Consumer vs. Commercial

Slide 21: Businesses That Have Momentum

Slide 22: Q&A Steve Schuckenbrock

Slide 23: Commercial Channel Strategy

Slide 24: Channel Is a Large Growth Opportunity That Can Be Profitable

Slide 25: Flexible Channel Strategy Tailored to Customers

Slide 26: Created Flexible Engagement Model

Slide 27: Online Partner Portal

Slide 28: Why Dell? Compelling Value Proposition

Slide 29: Ramp Regional Partners to Double Share Over Time

Slide 30: Q&A Paul Bell