Dell earmarks $1 billion for 'mid-market' opportunities
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Dell earmarks $1 billion for 'mid-market' opportunities

Thursday, 30 June 2011, 10:51 Hrs
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NEW YORK: Computer-maker Dell Inc today said it has earmarked $1 billion for acquisitions in mid-market opportunities, including small and medium businesses in the public sector, education and the healthcare industry.

Addressing an analyst conference, Chairman and CEO Michael S Dell said, "$1 billion committed to organic growth and innovation.

The company said it will focus on "mid-market opportunities," including small and medium businesses in the public sector, education and the healthcare industry as it looks to achieve long-term revenue growth in the range between 5 per cent and 7 per cent.

Dell said it was increasing focus on the mid-market as it looks to offer services such as new cloud computing, security and data management services to customers.

"Acquisitions will continue to be critical focus of strategic investment activities," Dell said, adding that the company will follow, a "strong cash flow generation model."

Dell had about $15.2 billion in cash and investments at the end of the first quarter.

Mid-market companies -- enterprises with up to 5,000 employees -- are taking up a larger chunk of the global IT market, mainly in emerging markets.

Dell, which has bought 11 companies in the last two years in order to address mid-market needs, is looking to further acquire firms to expand its product portfolio and intellectual property.

Some of the main acquisitions were storage firm EqualLogic and Compellent, cloud company Boomi and security firm SecureWorks and services company Perot Systems .

Meanwhile, the PC-maker said it has made significant progress toward improving and sustaining profitability.

In its storage division, the company expects revenues of $4 billion to $5 billion by fiscal 2015, with an annual growth rate of 15 percent to 20 percent.

For services, revenues for fiscal 2015 are projected to be between $10 billion and $11 billion, with an annual growth rate of 7 percent to 9 percent.
Source: PTI
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