Dell Unveils Massive Reorganization - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure // PC & Servers

Dell Unveils Massive Reorganization

To try to stem declining revenue and profits, the PC maker will change its business sales and marketing approach from a regional to a global strategy.

Dell, which has seen PC sales slow in the economic downturn, announced on Wednesday a massive reorganization that establishes three separate global units for selling to businesses and government agencies.

In addition, the world's second-largest computer maker said Mike Cannon, president of global operations, would retire effective Jan. 31; and Mark Jarvis, chief marketing officer, would leave during the current fiscal quarter. However, Cannon and Jarvis would continue to be involved with the company as consultants.

The reorganization, announced about a month after Dell reported a drop in revenue and profits as a result of slowing sales for servers and PCs, changes the company's approach in selling to businesses and government from a regional to a global strategy. Dell this year adopted a global approach in its consumer business, led by Ron Garriques.

The latest move establishes three worldwide business units, one targeting large companies; another focused on the public sector, which includes government and education; and the third on small and medium-sized businesses.

"We have laid the foundation for the transition from a global business that's run regionally to businesses that are really globally organized," Michael Dell, chairman, chief executive, and founder of the company, said in a statement.

Steve Schuckenbrock, currently president of global services and CIO, will lead the sales effort to large corporations, and Paul Bell, currently president of Dell Americas, will head the public-sector business unit. Leading the SMB sales operation will be Steve Felice, currently president of Dell Asia-Pacific and Japan.

The company plans to align its financial reporting with the new structure during the first half of fiscal year 2010, which begins in February.

Meanwhile, the company said Cannon will be succeeded by Jeff Clarke, who will become vice chairman of global operations while continuing to head Dell's business client product group. Jarvis will be succeeded by Erin Nelson, who was VP of marketing for Dell in Europe, the Middle East, and Africa.

Dell in November reported that profits in the fiscal third quarter fell to $727 million from $766 million the same period a year ago, as revenue fell more than 3% to $15.2 billion. Dell blamed the drops on lower sales across the globe.

Dell's dependency on the PC market makes the company particularly vulnerable to weakening demand in the current economic recession. Dell released its latest earnings the same day iSuppli slashed its 2009 forecast for PC shipments by nearly two-thirds because of rapidly deteriorating conditions in the global economy.

At the same time, Dell is struggling to regain market share from its rival Hewlett-Packard, the world's largest computer maker. HP in November reported fiscal fourth-quarter earnings that exceeded Wall Street forecasts.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll