Dell 2009 Annual Report Download - page 7

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Table of Contents
and grow their businesses. For example, our ProManage-Managed Services solution is a web-based service that proactively
monitors and manages IT networks to prevent system issues.
• Consumer — Our Consumer business sells to customers through our on-line store at www.dell.com, over the phone, and
through retail. The globalization of our business unit has improved our global sales execution and coverage through better
customer alignment, targeted sales force investments in rapidly growing countries, and improved marketing tools. We are also
designing new, innovative products with faster development cycles and competitive features. Our recently announced Global
Communications Solutions business is part of our focus on innovative products and designs for mobile devices. Our focus is on
delivering mobile communications solutions for wireless operators and their dedicated customers. We collaborate with select
carriers around the world to make the most of a customer's mobile experience, on any network, and using any application.
Finally, we will continue to expand and transform our retail business in order to reach more consumers.
For financial information about the results of our reportable operating segments for each of the last three fiscal years, see "Part II —
Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Segment
Discussion" and Note 14 of Notes to Consolidated Financial Statements included in "Part II — Item 8 — Financial Statements and
Supplementary Data."
Products and Services
Our aim is to provide customers with integrated business solutions. We design, develop, manufacture, market, sell, and support a wide
range of products and services that can be customized to individual customer requirements. Our products and services are organized
between enterprise solutions and client categories. Enterprise solutions include servers, storage, and related services, software and
peripherals. Client includes mobility, desktop products, and also related services, software and peripherals. Our services include a broad
range of configurable IT and business services, including infrastructure technology, consulting and applications, and business process
services. We also offer or arrange various customer financial services for our business and consumer customers in the U.S.
• Product Development
We focus on developing modular and scalable technologies that incorporate highly desirable features and capabilities at
competitive prices. We employ a collaborative approach to product design and development in which 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 total research, development, and engineering expenses were $624 million for Fiscal 2010, $665 million for
Fiscal 2009, and $693 million for Fiscal 2008, including acquisition related in-process research and development expenses of
$2 million for Fiscal 2009 and $83 million for Fiscal 2008.
• Manufacturing and Materials
Third parties manufacture some of the products we sell under the Dell brand. We have expanded our use of contract
manufacturers and manufacturing outsourcing relationships to achieve our goals of generating cost efficiencies, delivering
products faster, better serving our customers in certain segments and geographical areas, and delivering a world-class supply
chain. Our manufacturing and distribution facilities are located in Austin, Texas; Winston-Salem, North Carolina; Nashville,
Tennessee; Penang, Malaysia; Xiamen, China; Hortolândia, Brazil; Chennai, India; and Lodz, Poland. Beginning in Fiscal
2009, we have reduced our fixed costs by selling, closing and consolidating manufacturing and other facilities, and have moved
towards a more variable cost manufacturing model. In connection with our implementation of this model, we have announced
the closure of our Winston-Salem manufacturing facility and the sale of our Poland facility, both expected to be finalized in
Fiscal 2011. See "Part I — Item 2 — Properties" for information about our manufacturing and distribution locations.
Our manufacturing process consists of assembly, software installation, functional testing, and quality control. Testing and
quality control processes are also applied to components, parts, sub-assemblies, and
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