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Dell sees slowdown in IT spending by enterprises in India
[April 03, 2009]

Dell sees slowdown in IT spending by enterprises in India


New Delhi, Apr 02, 2009 (Asia Pulse Data Source via COMTEX) -- Computer maker Dell today said it may see slight slowdown in IT spending by the large enterprises in the country due to the current economic scenario.

However, the company is bullish to grow in the small and medium size business (SMB) segment in the country.

"There will be slight slowdown in IT budget in the enterprises segment in India. But they still have to spend on IT. The small and medium size business will continue to grow in the country," Dell India Country General Manager Sameer Garde told reporters after launching PowerEdge servers and Precision workstations here.



Public sector Enterprise is also a growing segment for Dell. In two years, the market share in the public sector segment grew to 9 per cent.

Dell had recently restructured its business operations in India around four segments -- consumer, large enterprise, public sector, and small and medium businesses -- from the earlier two (consumer and enterprise).


The enterprise segment contributes significantly towards the revenues of Dell.

Talking about the challenges faced by customers due to the global slowdown, he said different business segments would be impacted differently, while the enterprise would be significantly impacted, SMBs might face some constraints due to the credit crunch.

Reasearch firms had already said that the ongoing global slowdown would force companies worldwide to reduce their IT expenditure by about 3.8 per cent to USD 3.2 trillion this year against USD 3.4 trillion in 2008. Gartner, a research firm, had said that all four of the key market sectors of the IT industry -- hardware, software, IT services and telecommunications -- have been revised downward, with only software spending growth remaining positive.

Dell grew its market share in India ( in Desktops, notebooks and servers) to 11 per cent this year from 7 per cent last year when the Indian market registered a dip in PC shipments.

The current addressable market size of Dell in India is 15-16 billion dollar.

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