The Dell Annual Analyst Conference (DAAC) 2014 held in September covered Dell's journey specifically in the Indian context in the past one year post privatization, including a status check on the details shared in the previous event DAAC 2013. With no detailed quarterly reporting of performance, Dell's focus is on the relevancy of offerings to customers measured using the NPS (Net Promoter Score). There has been an 18% increase in the YoY NPS score.
Compared to the overall business plan for India presented in the 2013 event, there has been progress made in terms of the number of references and enterprises in conversation with, increase in the number of exclusive stores to 258 with plans to reach 400 next year, expanding sales coverage in tier 2 & 3 cities and resellers and partners. The priorities for the Indian market based on the four foundation blocks i) transform (for IT efficiency), ii) connect (the workforce in enterprises), iii) inform (decision making and communication) and iv) protection are:
• to be a trusted advisor on technology solutions
• to transform the coverage model
• to evolve capabilities internally on the people and process side
This transition from a product based strategy to a service based strategy can be a long journey. Dell's vision to be recognized among the top 5 players in software and services needs more success stories in the Indian ecosystem to match its market position in other areas like client devices, server and storage where it is among the top 5. The services team's value proposition to "modernize" application portfolios from the legacy architectures to a modern portfolio (2nd platform or client-server era) may be where the volume is. But Dell's focus on "digital transformation" where it helps enterprises to migrate from the 2nd platform to the 3rd will be where most of the value is. It can also be an offering where Dell brings together the different pieces including server and storage in its offering to provide an end-to-end solution.
The 3rd Platform can offer a level play field helping organizations like Dell reach the top 5 in IT services in a region or country. Not all tech buyer organizations are clear on how to move forward and any late mover disadvantages for service providers in traditional areas can be negated. The vertical focus will also be key as industries look for deep domain knowledge and industry specific approaches and applications and for Dell to replicate its healthcare story in other sectors.