Dell, one of the top computer-makers globally, is increasingly looking at enterprise services and sees 2012 as a transformational year in this journey. With an eye out for acquisitions and product launches up its sleeve, Mr P. Krishnakumar (Executive Director, Marketing — Consumer and Small and Medium Business, India), told Business Line that he sees the market taking off in the second half of this year.

Edited excerpts from the interview:

What is the next big thing that Dell is looking at in India?

The fact that Michael Dell has been visiting India every year is to me a clear communication of his commitment to the India market. We are now into transformational stage — moving into enterprise business or services front. We have acquired nine companies in storage and security space. We are interested in acquiring a company in the services space to help strengthen our IT engagement. Our hardware-plus-services solution will help reduce costs.

Target for 2012? How do you see the market this year?

The first half is going to be soft primarily because of the macro-environment. The second half should start seeing some ramp-up. Our endeavour is going to be more moving up the value chain for the customers. On the enterprise side, our 12{+t}{+h} generation servers will get launched soon and we see our enterprise portfolio getting strengthened with that. We have a whole range of servers coming in.

How is the mobility piece shaping up?

Mobility purely will not be a focus but mobility as a secondary device will be a focus. This is not going to be the primary device. People are still going to be using laptops as the primary device. So we are launching laptops with sleek designs which will take away the need for two devices and meet the desire to stay ‘instant on' and the ability to create content. We will stick to where we see core competencies. We will play in those markets, but it will not be a big part of our portfolio.

Is there more focus on tier-2 and -3 markets?

We have presence in about 700 cities and Dell has a very unique distribution model — one can buy through exclusive Dell stores, buy online, buy in mom-and-pop stores, shop in shop outlets.

Consumer-wise, it is very important and also from an SMB (small and medium business) perspective as SMBs don't usually have the right advice. In this model, they can talk to us and then get their orders from their dealers. We are also working on EMI schemes to help people.

Are most sales happening offline?

Tier-1 markets are more inclined towards offline. But first-time buyers are still comfortable buying offline. But lot of people go to our exclusive stores. What you can do there is unique — you can touch and feel the product and still place a direct order at the store with your configurations.

Is manufacturing locally an advantage?

Localisation helps in cutting time as in direct marketing, manufacturing starts only after all orders are placed.

Also, there is no ecosystem for manufacturing — I am still buying in dollars and spending in rupee. So unless the Government spends money in building this ecosystem, it is not going to help.

>sushma.un@thehindu.co.in

>tkt@thehindu.co.in

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