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Table of Contents
Product Development
We focus on developing standards-based technologies that incorporate highly desirable features and capabilities at
competitive prices. We employ a collaborative approach to product design and development, where our engineers, with
direct customer input, design innovative solutions and work with a global network of technology companies to architect new
system designs, influence the direction of future development, and integrate new technologies into our products. Through
this collaborative, customer-focused approach, we strive to deliver new and relevant products and services to the market
quickly and efficiently. Our research, development, and engineering expenses were $498 million for Fiscal 2007, $458 million
for Fiscal 2006, and $460 million for Fiscal 2005.
Products and Services
We design, develop, manufacture, market, sell, and support a wide range of products that in many cases are customized to
individual customer requirements. Our product categories include desktop computer systems, servers and networking
products, storage, mobility products, and software and peripherals. In addition, we offer a wide range of enhanced services.
See "Part II — Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations —
Revenue by Product and Service Categories" and Note 10 of Notes to Consolidated Financial Statements included in
"Part II — Item 8 — Financial Statements and Supplementary Data."
• Desktop PCs — Our customers can select from five lines of desktop computer systems. The OptiPlexTM line is designed to
help business, government, and institutional customers manage their total cost of ownership by offering stability, security,
and managed product transitions. The DimensionTM line is designed for small businesses and home users requiring the
latest features for their productivity and entertainment needs. The XPSTM and Alienware lines are targeted at customers
who require the highest performance gaming or entertainment experience available. In July 2007, we introduced the
VostroTM line, which is designed to provide technology and services to suit the specific needs of small businesses.
Dell PrecisionTM and Alienware MJ-12® workstations are intended for professional users who demand exceptional
performance from hardware platforms optimized and certified to run sophisticated applications, such as three-dimensional
computer-aided design, digital content creation, geographic information systems, computer animation, software
development, computer-aided engineering, game development, and financial analysis.
• Servers and Networking — Our standards-based PowerEdgeTM line of servers is designed to offer customers affordable
performance, reliability, and scalability. Options include high performance rack, blade, and tower servers for enterprise
customers and aggressively priced tower servers for small organizations, networks, and remote offices.
Our PowerConnectTM switches connect computers and servers in small-to-medium-sized networks. PowerConnectTM
products offer customers enterprise-class features and reliability at a low cost.
• Storage — We offer a comprehensive portfolio of advanced storage solutions, including storage area networks, network-
attached storage, direct-attached storage, disk and tape backup systems, and removable disk backup. With our advanced
storage solutions for mainstream buyers, we offer customers functionality and value while reducing complexity in the
enterprise. Our storage systems are easy to deploy, manage, and maintain. The flexibility and scalability offered by Dell |
EMC and Dell PowerVaultTM storage systems helps organizations optimize storage for diverse environments with varied
requirements.
• Mobility — The XPSTM and Alienware lines of notebook computers are targeted at customers who require the highest
performance gaming or entertainment experience available. In Fiscal 2007, we introduced the XPS M2010, an innovative
mobile platform featuring a 20-inch high definition display that received awards for its unique design. The LatitudeTM line is
designed to help business, government, and institutional customers manage their total cost of ownership through managed
product lifecycles and the latest offerings in performance, security, and communications. The InspironTM line is targeted at
3