Infotech Lead India: Dell has appointed Suresh Vaswani as president of Dell Services.
In Q3 2012, Dell Enterprise Solutions and Services revenue grew 3 percent year over year to $4.8 billion. The ES&S business is on an annual run-rate approaching $20 billion.
Dell’s Services business continues to execute well, with gross margin percentages improving sequentially for the sixth consecutive quarter, as the company focuses on the most profitable areas of the business. Growth in support, deployment and security services highlighted the quarter.
Vaswani previously led Dell Services’ application and business process outsourcing (BPO) line of business.
Vaswani will report to Chairman and CEO Michael Dell, and will be responsible for developing and delivering end-to-end IT services and business solutions for global corporations, state and local governments.
He also is responsible for Dell’s IT delivery, including the company’s infrastructure and applications worldwide.
“We have made huge strides transforming Dell into a leading provider of end-to-end solutions, and our Services business has been a cornerstone of our progress,” said Dell.
“We have the right team and the right strategy in place to help our customers solve their biggest challenges through next generation solutions in support services, security, cloud and infrastructure services, and applications and business process outsourcing,” said Vaswani.
Vaswani joined Dell after 25 years at Wipro, where he served as the co-CEO of Wipro’s IT business and was on the Board of Wipro.
Vaswani succeeds Steve Schuckenbrock, who held executive leadership roles at Dell since joining the company in 2007. Schuckenbrock recently announced his intention to seek new opportunities outside Dell.
Dell’s server and networking revenue for the quarter grew 11 percent. Dell was the only top-3 server provider to have positive unit growth in the quarter. Dell’s server growth was driven by its new, 12th-Generation line, leadership in hyper-scale infrastructure solutions and an increase in customer adoption of cloud solutions for their IT requirements. Dell’s differentiated intellectual property and solutions have resulted in solid growth in this business.
Large Enterprise revenue was $4.2 billion in the quarter, an 8 percent decline. Operating income was $325 million, or 7.8 percent of revenue.
Public revenue was $3.8 billion, an 11 percent decrease. Operating income for the quarter was $352 million, or 9.2 percent of revenue.
Small and Medium Business revenue was $3.3 billion, a 1 percent decline. Operating income was $349 million, or 10.6 percent of revenue.
Consumer revenue was $2.5 billion, a 23 percent decline. Operating loss was $65 million or minus 2.7 percent of revenue.
Revenue in Americas was down 9 percent; Asia-Pacific and Japan was down 11 percent; and EMEA was down 15 percent.