Dell EMC to ramp up data center networking business, eyes more SMBs

By Espie Angelica A. de Leon

Computer technology company Dell EMC announced it is starting to focus on data center networking and serving small and medium-sized businesses (SMBs) more strongly as these ventures make up a growing market niche with huge potentials.

Photo shows Peter Marrs, senior vice president and general manager of global commercial compute and networking sales (left) and Venkatesh Murali, head of compute and  networking group for Asia emerging markets and Philippines

Speaking at a media roundtable session at its Manila headquarters in Bonifacio Global City on December 15,  Dell EMC’s Venkatesh Murali, head of compute and networking group for Asia emerging markets and Philippines, said that around 20% of their customers in the Philippines are SMBs.

“Across the company,  we’ve invested probably 500 salespeople to go after that medium business,” added Peter Marrs, senior vice president and general manager of global commercial compute and networking sales for Dell EMC.

“We’ve got salespeople. We have some very very strong channel partners. We’ve got the right solutions there. Those customers need more help than anybody else. Information technology is not there. So we’re making investments there.”

Aside from strengthening efforts to further penetrate the SMB market in the Philippines, Dell, which is set to go public sometime this month, is likewise looking to boost its performance in its data center networking component which is growing three times faster globally than its other business units.

A $9.8 billion business, the company’s Infrastructure Solutions Group which consists of servers, storage, and networks, has posted a 19% year on year growth for the third quarter of 2018.  Marrs confirmed that the tech giant, recognized by Gartner as a leader in the 2018 Magic Quadrant for Distributed File Systems and Object Storage, does have ongoing big-ticket data center deals in the Philippines.

Globally, the SMB segment is one of Dell’s fastest growing. For one, its server business has been growing by more than 30%. According to Marrs, the medium business market partially accounts for this. Dell also boasts of a lot of medium business clients in North America who buy products directly from them.

However, compared to North America, Dell’s market in Asia is actually growing faster. The Philippines, in particular, has registered an 80% year on year growth across the first and second quarters, making the country its fastest growing client base in Southeast Asia.

“This business is growing dramatically here and in Asia. We have tons of opportunity. And the biggest area where we see the opportunity is [that] most customers are looking for someone who can help them transform,” said Marrs.

He shared that businesses in the Philippines would like to know what they’re going to take on premises or off premises, how they’re going to deploy and manage it in the most economical way, and how they can ensure that their IT infrastructure will provide them with the best data to make them compete in the market.

Dell plans to continue investing heavily on people, solutions, and infrastructure to sustain the company’s robust growth in 2019.

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