As the demand for information technology products and services increases in line with their role in growing businesses, small and medium enterprises in verticals ranging from healthcare to fitness companies to beauticians are adopting the IT route to gain visibility and enhance performance. Dell, the leader in the Indian personal computer market, is aggressively looking at expanding its reach in the SMB space in India. Bobby Mon, Head – Enterprise Business, SMB, Dell India, briefs Pradeesh Chandran on the company’s plans for this segment. Edited excerpts:
SMBs in India have started spending on IT in a big way. Being a leader in the personal computer segment, what are your plans to tap opportunities in this segment?
Small and medium businesses in India are adopting technology for growth. It is a huge growth market and we want to grow our business along with the growth of the business. We created a separate SMB division three years ago to focus on the new market opportunities. We had a minuscule presence in this (SMB) space earlier, which is changing fast. Our SMB business is growing quite fast. We have a whole range of products to cater to the needs of the SMBs, and a strong team which understands their concerns.
Dell was using the direct sales route for most of its products. What is your channel strategy to reach out to SMB players?
In the large enterprises segment, we were using a direct sales approach. But for SMBs we have made a change in our strategy. We have around 40,000 customers in the SMB space in India. We realised that it is difficult to address this huge volume through our direct sales force. So we decided to adopt the channel strategy to drive the SMB business. Presently, we have around 2,300 channel partners across the country.
Most other PC vendors present in India have increased their focus on SMBs. What really will differentiate you from them? Would there be a pricing strategy?
As the global leader, our philosophy is very clear. We come with open standards and affordable solutions. We understand the customers’ needs and provide them solutions. As we follow open standards, the customer can switch to any vendor if he is not happy with our service. Apart from this, we provide bundled solutions and management tools which make the life of an IT administrator much easier. We are aggressive and want to gain market share. But it doesn't mean that we will have a separate pricing strategy or slash the price of our offerings.
Experts believe that cloud computing is the next big wave in India and SMBs will adopt the cloud. Could you elaborate on your plans in this area?
Cloud adoption in India is not as high as compared to other mature markets in the globe. In India, it is still an emerging trend. Most of our customers are asking about the cloud and they are enthusiastic. They are keen to understand how the cloud works. Customers are looking at and exploring the opportunities provided by the cloud as an alternative technology. At present, our strategy is to help customers build a private cloud, based on our architecture, and provide consulting to them.
How much does the SMB segment contribute to Dell India’s revenue?
We cannot give numbers based on a particular division or particular region. But, the Indian market is the fastest growing in the entire Asia region for Dell. We want to grow our business in India at a higher rate than the industry average.
