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    Dell unit sets sight on small businesses
     
    By Miguel R. Camus
    Researcher
     

    Among the most recognizable names in the information-technology scene today, Dell Philippines is now making a big play in a market they have previously left untouched: the small to medium business (SMB) segment.

    “We are pretty much a new player in this space [SMB market],” said Barry Bunyi, who heads Dell’s entire operations in the Philippines during an interview with the BusinessMirror Thursday.

    He added that company’s business was traditionally rooted in large companies and the business process outsourcing sector.

    A relative newcomer, Dell only started to specifically target SMBs through its Vostro line of computers in early 2008. The company said they have since made great strides in this sector.

    Bunyi said they decided to focus on the SMB market because it represents a large and fast-growing segment. He said that of the total number of Dell notebooks, servers and desktops purchased recently, around 35 percent to 40 percent are bought by SMBs.

    He shared that Dell recorded a 70-percent quarter-on-quarter sales growth in the SMB sector.

    “There are thousands of companies in this category. I won’t say that we’re late [in targeting the segment] because this sector is growing,” he said.

    The Dell executive says his company has natural advantages. Bunyi offered that part of the strategy is to leverage the company’s success in the corporate sector. The company also made sure to partner with Innovista Technologies Inc., one of the country’s largest distributors, in early October.

    This brings the number of Dell distributors to two after IronFort Inc. was named in summer and gives the computer company combined access to hundreds of resellers nationwide.

    The company also stands to benefit from the Vostro products which, Bunyi said, are competitive in terms of price and features attractive to the SMB segment. The unraveling crisis in the world economy has many experts warning of a slowdown in business activity.

    Bunyi said that this is a legitimate concern which is why they have conservative forecasts for 2008.

    “The global slowdown will definitely affect everyone. But they [SMBs] will still need to progress their IT requirements,” he said.

    He predicts that Dell sales in the SMB market will average between 30-percent and 40-percent growth in 2008.

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