STANDARDIZATON CONSOLIDATION SCALING INTEROPERABILITY DATA MANAGEMENT PORTFOLIO MANAGEMENT

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1 STANDARDIZATON CONSOLIDATION SCALING INTEROPERABILITY DATA MANAGEMENT PORTFOLIO MANAGEMENT

2 IT S WHO WE ARE AND HOW WE WORK Seems like every technology company is fond of saying they eat their own dog food. But what does it really mean? Usually just a software application here or a piece of hardware there. But at Dell, eating our own dog food isn t just a tired industry cliché. Any way you slice it by processing power, by storage, by people, by budget we run Dell s $50 billion high-growth business more than 95% Dell on Dell. Here s why. 2

3 JUST LIKE OTHER COMPANIES YET UNIQUE Dell.com exceeds the Internet sales revenue of combined! * Direct choice of the consumer, versus: Dell is a unique kind of company, but we also face many of the same challenges as our customers. We are the leading e-business presence, with key supplychain and logistics competencies. We are a large-scale services provider. We are a consumer electronics channel, and a market-leading worldwide brand all rolled into one global company. For our customers, this means that we are uniquely positioned to understand their technology challenges, as we face many of these same challenges ourselves every day. Manufacturing / Supply Chain Dell is a Large- Scale Services Provider to: Ship 150,000+ systems per day Total Managed Seats % 2005 Market Leadership Harris Poll: Best Brands 2005 * Based on FY2005 revenue data for pure Internet sales only; excludes Google advertising revenue. #1 #2 #3 #4 #5 3

4 Dell IT Environment: 2000 Present % proprietary systems Cost of keeping the lights on = 1.55% of revenue $350 million annualized benefits IT Project Delivery 2000: <200 projects 2005: 1,200+ projects $1.8 billion annualized benefits 5% proprietary systems Cost of keeping the lights on = 0.89% of revenue THE VALUE OF STANDARDS As proprietary systems and platforms have been eliminated from the environment over time, the ability of our IT organization to focus on delivering new projects and benefits has risen more than five fold. And our operating costs as a percent of revenue have declined year over year, even taking into account that we pay for our hardware just like our customers do. Dell leads the industry in cost effectiveness and Dell IT is held to that same high standard. Leveraging standards-based technology enables us to respond at the speed of business, widening the gap as we continually create new competitive advantages for our business. IT S ALL ABOUT STANDARDS Driving toward standards-based platforms has been key to our success within Dell IT but there s more to the story than just lower operating costs. For us, another significant benefit has been the ability to leverage our IT workforce in much more efficient ways than ever before. Rather than spending time maintaining complex legacy systems, our IT professionals can focus on delivering new and better solutions for our business partners and that helps us to maintain our competitive edge. 4

5 CONSOLIDATION IS THE KEY Server, storage and network consolidation have been a major part of our success in reducing complexity and creating a technology environment that s not only simple to scale, but simple to manage, too. Moving from more than 20 data centers to just two, and from hundreds of server farms to a few dozen, has helped ensure that we can restore any of our 80+ mission-critical Class I applications in just four hours or less. In an environment where an hour of downtime can cost millions in revenue, that s a crucial advantage. Scalable Architecture = ACTIVE Workload Balanced Across Data Centers ACTIVE Full Real-Time Replication Full Disaster Recovery Security in the Data Center CAPITALIZING ON THE CURVE The modularity of standards-based platforms means that as assets depreciate off, they re easily replaced with the latest technology, in effect giving us a sliding scale on Moore s Law. By refreshing more than one fifth of our enterprise systems each year, we ensure that we are always optimally positioned on the price-performance curve and when managing more than 5,000 servers and 1.75 petabytes of storage, we see significant benefits. 5

6 THE RIGHT TOOLS, BUT NOT EVERY TOOL We want our developers to have the right tools but we ve never believed that means they should have every tool that s available. We focus on best-in-class solutions that have been demonstrated to be fast, effective, scalable, adaptable and interoperable. We ensure that our suppliers support these same principles, and we maximize value, buying power and availability through global enterprise license agreements. These strategies help to minimize development constraints, shorten project lifecycles, and reduce our total cost of ownership. Just some of the tools we use every day to build our enterprise: A TOOLKIT FOR THE ENTERPRISE In a virtual forest of software marketing hype, we strive to identify and implement those tools that provide the best value ones that grow with industry-standard technologies and open architectures. But beyond the inherently lower total costs associated with standards-based toolsets, we ve found another important competitive advantage: Standards breathe flexibility into IT teams, enabling developers to move quickly from technology to technology. As a result, we can more readily focus resources wherever our business needs them most. 6

7 SOME EXAMPLES OF STANDARDS AT WORK We ve detailed many of the key strategies that help us run our global enterprise on standards, but the proof is in the execution. Following are just four examples of the many ways that Dell IT builds competitive advantage for our business using a combination of our own hardware and our partners industry-standard tools. Now, some people will try to tell you that scale-out is too expensive, too complex, too hard to manage or just plain doesn t work. But if that were true, there wouldn t be a Dell. And we re definitely here. DELL.COM We built the world s highest revenue consumer e-business presence from the ground up using standards-based hardware and software. Any doubts about whether a standards-based scale-out architecture is really viable for the highest-volume transactional systems? Dell.com easily supports 2.2 billion page requests every quarter at up to 65,000 requests per minute, in 81 countries using 24 languages, serving 100 million users per quarter.* Stats: Dell PE6650 servers, Dell/EMC storage, Windows Server 2003, Microsoft.NET framework, Microsoft SQL Server. * Data current as of August 2005 EMEA ORDER-MANAGEMENT SYSTEM Exceptional sales growth in Dell s European operations demonstrated that our EMEA order-management system, previously a proprietary Unix-based application running on Sun servers, simply couldn t scale to meet growing demand. The solution? The power of Dell servers running Oracle 10g RAC in a grid configuration. The result? A system that s up to 300% faster, supports twice as many users, could save nearly $5 million over five years and is so scalable that we ve already tested it on up to 16 nodes in our labs. Stats: 12,000 concurrent sessions, Dell PE6650 servers (6 nodes), Dell/EMC storage, Oracle 10g RAC, Red Hat Linux. 7

8 INTEGRATED DELL DESKTOP (IDD) Built on the Microsoft.NET development framework, IDD leverages the Smart Client architecture and Web services to significantly improve the ability of Dell call-center agents to assist our customers. IDD integrates all of our key call-center applications into a unified interface that makes our agents more productive, helping to reduce call times by more than 10% and training time by more than 45%. Stats: 11,000 users, Dell PE6650 servers, Dell/ EMC storage, Microsoft.NET framework, Oracle 9i/10g, Microsoft SQL server. DELL DATA WAREHOUSE If there s one thing no business has a shortage of, it s data. But data doesn t become information until you have the right view. We ve eliminated data marts and scaled our data warehouse on Dell hardware from 8 to more than 300 terabytes, processing more than 2,000 data feeds daily, all with the goal of enabling our internal and external customers to answer any question, any time. Stats: 20,000 internal users, Dell PE2850 (100+ nodes), Windows 2000, EMC DMX 1000 storage totaling over 300 terabytes. MORE EXAMPLES OF LEVERAGING STANDARDS As we meet with our IT peers from many other industries around the world to share best practices, one theme that we hear time and time again is the nightmare of costly legacy systems that can t scale to meet the demands of the growing enterprise. At Dell, one of our core beliefs is that all systems must be architected from the ground up to be scalable and global. We can add capacity simply by adding nodes, and of course we re always adding the latest technology instead of buying backward to prop up legacy platforms with old technology. 8

9 GLOBAL NETWORK Dell operates in multiple countries throughout the world. We manage thousands of systems and servers delivering dependable access to important data. SEE THE REST OF WHAT WE DO Dell IT supports over 61,000 employees in more than 30 countries and we touch every aspect of the business. For the systems that enable and manage our supply chain, to our global services, to worldwide network access and security, and much more, we ensure Dell employees have stable and reliable access to the services and tools that they need to be successful. These are just a few examples highlighting the rest of what we do. 80,000 client systems worldwide Over 100 global WAN sites 31,000 VoIP users PORTFOLIO MANAGEMENT By globally utilizing a single tool, a thorough modeling process, and a sensible planning and management strategy, we have been able to increase our benefit to the entire organization while reducing our budget as a percentage of company revenue. Fiscal Year 2006: >1,000 completed projects >65% of IT resources dedicated to development More than 150 global projects completed WIRELESS Dell IT manages an extensive system of wireless access points for our employees worldwide. More than 800 wireless access points Over 15,000 notebooks in use 9

10 Half-day seminar presented by Dell IT executives 3 6 events per year in each of EMEA, APJ and Americas Covers relevant IT best practices, experiences and insights Includes one or more deepdive presentations on topics such as e-business, data management, and supply chain Summit events conducted once or twice yearly in each region, featuring an expanded program of sessions focusing on topics such as IT security, open-source computing, managed services, and portfolio management Customized briefing or conference call presented by Dell IT leaders Often focused on a specific topic or technology, such as server management, data warehouse, imaging and patch management, data center best practices, and many more Arranged through your Dell account executive For more information on Dell IT events and customer briefings, ask your Dell account executive, or visit REACH OUT TO YOUR PEERS AT DELL IT Lots of technology companies are eager to talk to you when they re trying to sell you something. But how many of them want to have an IT-to-IT discussion about common challenges and best practices? At Dell, our IT professionals are waiting to share Dell s key learnings with our customers and partners. Here are three ways you can start an IT-to-IT dialogue with us through our global IT events and one-on-one customer briefings. Remember, it takes time to build your way out... Why not be your industry s leader? 10

11 THERE S REALLY NO SECRET RECIPE We ve told you what s in our dog food but what about our competitors? Here are some key questions we think you should be asking them: What is your IT spend as a percent of revenue? (For 2004, ours was 1.4%, including all telecom.) What percentage of your business runs on standards-based technology? (We re at 95%.) What is the dollar benefit your IT organization delivers to the business? (For us, $1.6 billion last year alone.) We bet their answers will surprise you... if you get any answers at all, that is. Success demands results, not clichés. We re ready let s grow. 11

12 Visit Copyright 2005 Dell Inc. All rights reserved. (Rev. August 2005)

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