Dell sticks with plan to acquire 8-12 firms

Dell Inc will continue its acquisition strategy by buying eight to 12 firms annually in the near term, as it transforms itself from a personal-computer maker to an information technology service and solution provider to enterprises and consumers.

Dell Inc will continue its acquisition strategy by buying eight to 12 firms annually in the near term, as it transforms itself from a personal-computer maker to an information technology service and solution provider to enterprises and consumers.[File photo]

The US firm, now the world's No. 3 PC maker, sees revenue growth rate in China - its No. 2 regional market behind the United States - to be "higher than the industry rate," said Stephen Felice, Dell's president.

Dell is a company "selling solutions" rather than "selling devices" now, Felice said in an interview in Shanghai yesterday.

He was referring to Dell's Enterprise Solutions and Services division, which provides data, security, management, cloud computing and other services to enterprise users. In the second quarter, the division's revenue grew 6 percent year on year to US$4.9 billion, representing a third of the company's total income and above 50 percent of its profit.

In the coming years, the division's revenue will account for more than half of the company's total revenue, Felice said. To achieve the revenue target, Dell will continue its acquisition strategy, such as it did for consulting firm Bearing Point in 2009 and Internet security firm Sonicwall in March.

Felice said Dell acquired eight to 12 firms on average annually in the past and he hoped to "keep the pace" for the transformation. China has "less legacy" on information infrastructure and "open-minded" clients, but Felice said it will still be Dell's strategic market, including in the enterprise service segment.

In the first quarter, Dell's revenue in China gained 9 percent, against an average 4 percent rise in BRIC - Brazil, Russia, India and China.