Dell 2002 Annual Report Download - page 5

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Table of Contents
• Dell is the low-cost leader. Dell's highly efficient supply chain management and manufacturing organization, efficient direct-to-customer model, and
concentration on standards-based technologies allow Dell to maintain the lowest cost structure in the industry and to pass those savings to customers.
Additionally, Dell's focus on cost control during fiscal 2003 resulted in the lowest operating expense (measured as a percent of net revenue) in Dell's history
and the lowest among its major competitors. Dell's relentless focus on reducing its operating costs allows it to consistently provide customers with a superior
value.
• Dell provides a single point of accountability for its customers. Dell recognizes that as technology needs become more complex, it becomes more
challenging for customers to efficiently address their computing needs. Dell therefore strives to be the single point of accountability for customers with
complex technological challenges. Dell offers an array of services designed to provide customers the ability to maximize system performance, efficiency and
return on investment.
• Dell believes that standards-based technologies deliver the best value to customers. Dell believes that standards-based technologies are critical to providing
customers with relevant, high-value products and services. Focusing on standards gives customers the benefit of extensive research and development from
Dell and its entire supply chain, rather than a single company. Unlike proprietary technologies, standards provide customers flexibility and choice while
allowing their purchasing decisions to be based on performance, cost and customer service.
Products
Dell designs, develops, manufactures, markets, services and supports a wide range of computer systems, including enterprise systems (servers, storage and
networking products, and workstations), notebook computer systems, desktop computer systems, and software and peripherals. All market share references
included in this discussion are according to International Data Corporation ("IDC").
• Servers. Dell's standards-based PowerEdge line of servers is designed to provide customers affordable performance, reliability and scalability. Options
include high performance rack and tower servers for enterprise customers and aggressively priced tower and appliance servers made for small organizations
and networks. Dell ranks number one in the U.S. and number two worldwide in sales of servers based on Microsoft's Windows operating system. During
calendar 2002, Dell improved its number two worldwide market share ranking by 2.5 points to 21.6%.
• Storage. Dell y EMC and Dell's PowerVault lines of storage products offer customers a comprehensive portfolio of cost-effective hardware and software
solutions to protect customer data. Dell offers external storage, tape backup products, network attached storage, fibre channel arrays, storage area networks
and Dell rack solutions. During fiscal 2003, Dell increased its total external storage capacity shipped by 94% year over year to more than 21 petabytes.
Slightly more than a year after the creation of the Dell y EMC partnership, more than 2,500 customers had purchased Dell y EMC storage systems.
• Networking Products.Dell's PowerConnect switches are standards-based network switches that connect computers and servers in small- to medium-sized
networks. PowerConnect products offer customers enterprise-class features and reliability at a low cost. Dell introduced the PowerConnect line of network
switches in the third quarter of fiscal 2002. During the fourth quarter of fiscal 2003, Dell shipped its 2 millionth port in the PowerConnect line.
• Workstations. Dell offers the Dell Precision desktop workstation and the Dell Precision mobile workstation. These products are intended for professional
users who demand exceptional performance to run sophisticated applications, such as three-dimensional computer-aided design, digital content creation,
geographic information systems, computer animation, software development and financial analysis. In calendar 2002, Dell held the number one position in
the U.S. and worldwide for branded workstation unit shipments. 2