Idea Exchanges

Experience the solutions

Discuss the possibilities

Solutions Showcase

KeynotesHear the vision

2

Dell on Dell: Unlocking IT Investment for Innovation

33

The line between the business and IT continues to disappear

Increased Enablement

Deliver services and applications anywhere through the cloud.

Regulation Reality

Ensure compliance with an increasing number of complex regulatory bodies.

Increased Threat

Secure the network AND the data.

Data Tsunami

Analyze and monetize the massive growth in business data.

True 24/7

Deliver access anywhere, at any time. On any device.

4

Demands on IT continue to expand

Budgets are flat to down

Strategic investments limited to running the business

?Outcomes and ROI are not adequate or predictable

The Status Quo is not sustainable

55

On innovation On innovation

20%

Keeping the Lights OnTechnology ChangeRegulatory ComplianceSecurityBusiness Up & Running

Value CreationCustomer ConnectionStrategic AlignmentBusiness ResultsEnd-User Productivity50

%Start Goal

The first step to IT efficiency ischallenging the cost of running IT today

66

1stCOMPANY TO

OFFER FREE CONSUMER

COMPUTER RECYCLING

WORLDWIDE

40MTONS OF CO2 AVOIDED

BY CUSTOMERS USING

DELL SOLUTIONS

65 CUSTOMER INTERACTIONS

EVERY SECOND – 5.4 MILLION

EVERY DAY – 2B EVERY YEAR

COUNTRIES WITH OPERATIONS188

YEARS OF COMMITMENT TO INDUSTRY STANDARDS2595%

FORTUNE 500

COMPANIES

USING DELL

CALL CENTERS44

ISCSI STORAGE SOLUTION PROVIDER#1

An inside look at Dell

4 REGIONAL DATA CENTERS

300 Terabytes in Data Warehouse

Pages served online quarterly3.5B

7.5M

Security patches per year

15MEmails received86% emails filtered as spam

17M

Inbound toll calls per month

#1NEWSWEEK GREENEST COMPANY OF THE YEAR 2010

1BPEOPLE CONNECT VIA DELL

SERVERS EVERY DAY

110,000CLIENT SYSTEMS

22SALES OFFICES

77

Panama

Twin Falls

OKC

Austin/RR

Puerto Rico

Mexico City

Columbia

WS1

NashvilleReno

Toronto

Argentina

São PauloPorto AlegreChile

Bangalore

Chandigarh

Sydney

Mohali

Beijing

Shenzhen

Guangzhou

Chengdu

Hang Zhou

Hyderabad

Delhi

Penang

Philippines 1 & 2Hong Kong

Taiwan

Dalian

Xiamen

Kawasaki

Singapore

Miyazaki

ShanghaiOtemachi

AthensItalyGeneva

Montpellier

Madrid

Morocco

South Africa

LimerickDublinScotland

BracknellParis

BelgiumAmsterdam

Norway

Denmark

SwedenFrankfurt

Halle

Prague

Finland

Poland

EMFP

Bratislava

Cyberjaya

Everdream, CA

ZING, CA

ASAP

Everdream, NCSilverback

Dell Call Centers (44)

Regional DC (4)Manufacturing & Merge DC (11)Sales Offices (22)

Total = 95

Chennai

Acquisitions (12)

Equalogic

Current global facilities

Perot Systems, Plano

Florence

Hosting DC (2)

Boomi

Scalent, CA

Ocarina, CA

KACE, CA

InSite One, CT

88

Dell IT challenges

Global footprint, regional deployment

Inconsistent spend

100K CIOs!

99

ApplicationsIT GovernancePortfolio RationalizationStandardization

Transformation Of Dell IT

2002 2008

IT Simplification 1.0The drive to reduced TCO

IT Simplification 2.0The drive to agility and innovationInfrastructure

Data Center ConsolidationDell-on-Dell x86 ArchitectureVirtualization

2010

<2% of Revenu

e

<1.5% of

Revenue

InfrastructureGlobal Processes (ITIL-based)Further Consolidation & VirtualizationGreen Data Center

ApplicationsBusiness Architecture LedEnterprise Architecture FoundationShadow IT Elimination and Rationalization

1010

Basic methodology to drive cost savings

Standardize Simplify Automate

• Achieve uniformity

• Reduce number of moving parts

• Slash costs

• Eliminate. Unify. • Consolidate• Virtualization• Reduce touch points• Shrink risk

• Boost productivity

• Reduce manual interaction

• Manage growth

• Moved 97% of systems to x86 standard-based technology

• Use only two primary server images (.Net/Windows and Oracle/Linux)

• Single global client image

• Consolidated servers at an average of 15:1

• Virtualized 11,000+ servers while eliminating 6,000 servers for $100M+ savings over three years

• Reduce the number of software tool applications needed to solve help desk issues

• Image and deploy servers in hours, not days or weeks

• Reimage client systems “self service” in about an hour

Strategize Plan Implement Manage Monitor

ITIL governance / services-enabled

1111

Application reduction efforts

Jan-08 Jan-09 Jan-10 Jan-110

1000

2000

3000

4000

5000

6000

7000

25512008

1524 1401

3929

2863

13521004

Total Applications

IT Apps Non-IT Apps

Unknown cost of “shadow IT” can be as much as 2X the “known” IT budget

Duplicate reporting between org structures

Each application means more complexity, more interfaces required, more points of failure

Simplifying the application space enables infrastructure simplification

1212

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A very real example . . .

1313

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Why “rationalize the core”?

1414

2007 2008 2009 2010 20110

2000

4000

6000

8000

10000

12000

0%

10%

20%

30%

40%

50%

60%

70%

80%

543

5509

75009500

1100074%

62%

55% 50%

40%Oct 2009

APJ11%

USA64%

EMEA25%

Server Virtualization by Region (% of total VMs)

Test- Dev56%

Prod44%

Server Virtualization by Deployment (% of total VMs)

Overcoming Under-Utilization

Q4 CY2010

CY2011

% U

nd

er-

Uti

lized

S

erv

ers

Tota

l S

erv

er

Pla

tform

# V

irtu

al

Serv

ers

Dep

loyed

Case study – virtualization

9,500+ Virtual Servers on650 VMware ESX Servers

11,000 Virtual Servers on700+ VMware ESX Servers

1515

2007 2008 2009 2010 20110

2,000

4,000

6,000

8,000

10,000

12,000

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

543

5509

7500

9500

11000

$3M

$38M

$64M

$77M

$90M

Virtualize More and Save More

Esti

mate

d C

ost

Avoid

an

ce

(M

illi

on

s)

# V

irtu

al

Serv

ers

Dep

loyed

Virtualization – cost savingsEstimated ROI Savings OverThree Years

• > 60% savings over traditional

Comparison of Only Tangible Costs

• Dell IT standard physical 2u server vs. Dell IT standard VM

• One-time startup costs including infrastructure, provisioning, and logistics

• 4-years of yearly costs including DC space, power/cooling, maintenance and support

What’s Missing?• Quantifying the intangibles

like speeding up the application development lifecycle

• Understanding impact of any future architectural changes on ROI

*Based on forecast, we anticipate the 11,000 virtual servers will be in a approximate ratio of 60/40, Test-Dev/Prod.

1616

White Space

768 sq ft

594 sq ft

-23%

# of Physical Servers

480

640

+33%

# of OS

585

4,960

+747%

Max Power/Rack

3.5kW

17.2kW

+390%

Utility $ per OS ($.07/kWh)

$338

$58

-80%

Data center densification:Optimized Containment Solution (OCS)

iSCSI

iSCSI

In R

ow

Co

olin

g

In R

ow

Co

olin

g

In R

ow

Co

olin

g

In R

ow

Co

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g

In R

ow

Co

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g

In R

ow

Co

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g

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ow

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g

In R

ow

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g

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In R

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Co

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g

UHDVMR01

UHDVMR01

UHDDBR02

UHDDBR02

UHDSAR03

UHDDBR03

UHDSAR04

UHDSAR04

UHDVMR05

UHDVMR06

UHDVMR07

UHDVMR08

UHDSAR09

UHDSAR10

UHDSAR10

UHDSAR09

UHDVMR08

UHDVMR07

UHDVMR06

UHDVMR05

Cluster A

R1R2R3

Cluster B

R1R2R3

Cluster C

R1R2R3

Cluster D

R1R2R3

Cluster E

R1R2R3

Cluster F

R1R2R3

Cluster G

R1R2R3

Cluster H

R1R2R3

Cluster A

R1R2R3

Cluster B

R1R2R3

Cluster C

R1R2R3

Cluster D

R1R2R3

Cluster E

R1R2R3

Cluster F

R1R2R3

Cluster G

R1R2R3

Cluster H

R1R2R3

2nd Gen OCS RowsLegacy Rows

Benefits from Densification

Legacy

OCS

Hot Aisle

Cold Aisle

Hot Aisle

Hot or Cold Aisle Containment

1717

IT cost allocation exampleFY10 Large Enterprise Public Consumer SMB COGS - Services COGS-

OperationsTOTALS

Dell HostingDatabase Services 3.4$ 3.5$ 2.2$ 2.5$ 3.4$ 9.2$ 24.1$

Server & Storage Services 24.8$ 23.4$ 15.3$ 15.8$ 21.9$ 53.5$ 154.6$ Tandem Services 1.3$ 1.3$ 1.3$ 1.3$ 3.3$ 3.9$ 12.2$

Software Depreciation & Maintenance 15.2$ 13.9$ 8.9$ 11.0$ 18.5$ 4.3$ 71.9$ AIMS Hosting Strategies -$ -$ -$ -$ 12.7$ -$ 12.7$

Total - Hosting 44.6$ 42.0$ 27.7$ 30.6$ 59.8$ 70.9$ 275.6$

Dell Connect Mobile 18.7$ 11.9$ 2.7$ 2.2$ 9.2$ 4.7$ 49.3$

Voice / Data Ports 19.8$ 18.2$ 11.6$ 14.4$ 24.2$ 28.2$ 116.4$ Conferencing 9.9$ 6.9$ 3.0$ 2.0$ 7.6$ 2.6$ 32.1$

Inbound 2.4$ 0.2$ 40.0$ 5.8$ 10.0$ -$ 58.5$ Outbound 1.7$ 3.5$ 16.1$ 8.9$ 5.3$ -$ 35.5$

Total - Connect 52.6$ 40.8$ 73.4$ 33.2$ 56.3$ 35.5$ 291.8$

Managed Client Managed Client 4.8$ 4.4$ 2.8$ 3.5$ 5.9$ 1.4$ 22.9$ Managed Print 1.3$ 1.2$ 0.8$ 0.9$ 1.6$ 0.4$ 6.2$

Service Desk 0.3$ 0.3$ 0.2$ 0.3$ 0.4$ 0.2$ 1.7$ Total - Managed Client 6.5$ 6.0$ 3.8$ 4.7$ 7.9$ 1.9$ 30.8$

Applications Development Development 79.2$ 71.3$ 72.3$ 67.6$ 66.0$ 113.9$ 470.4$

Total - Applications Development 79.2$ 71.3$ 72.3$ 67.6$ 66.0$ 113.9$ 470.4$

Applications Support Support 3.8$ 3.4$ 3.1$ 3.3$ 4.3$ 6.1$ $ 24.0

Total - Applications Support 3.8$ 3.4$ 3.1$ 3.3$ 4.3$ 6.1$ 24.0$

Total By Segment - Adjusted 189.2$ 165.7$ 181.8$ 141.2$ 190.1$ 224.6$ 1,092.6$

1818

Annual Benchmark to

Industry

Develop Cost Take-Out

Plans

Issue 4Q Forward Cost by Service

Cost Allocation Reflects

Change ~1Q After Full

Implementation

Improvements are benchmarked

1919

Results of Dell’s transformation

OF 2004 BUDGET SPENT ON INNOVATION

28%543

SPENDING

2.1%

8,000+APPLICATIONS IN 2007

VIRTUAL MACHINES DEPLOYED IN 2007

OF REVENUE ON IT IN 2008

OF BUDGET SPENT ON INNOVATION

52%11,000

VIRTUAL MACHINES DEPLOYED

SPENDING

1.4%OF REVENUE ON IT IN 2011

IT SAVINGS DELIVERED:

$300M PER YEAR

Then . . . Today . . .

2,200APPLICATIONS IN 2011

INVESTED ININNOVATIONTO TRANSFORM THE BUSINESS

20

So what should a CIO do?You have many levers to pull

Start with the Business Process and Application Architecture – Skills, staffing and infrastructure will get rationalized as a result.

Standardize, standardize, standardize! Three is better than five, and two is better than three – but ONE is best!

Examine project portfolio. Focus on the projects with the high business value.

Focus on “Shadow IT”: How much are you really spending on IT without knowing it?

SPEND, but wisely! Are you spending every budget dollar in a way that creates value and savings?

Re-examine what you do today

Idea Exchange Session

Please take a moment and provide feedback on this session. www.dellworld.com/feedback

Thank you for attending.

Prepare for your guided tour of the Dell World Solutions Experience• Refer to the back of your

badge for your specific tour number

• Meet your guide and tour group in the area outside of the expo hall

• Enjoy your tour!

Backup

25

Global IT organization design

Robin JohnsonCIO

Office of the CIO

Strategy, Technology & Governance Office

Information Management(Business Intelligence, Master Data)

Application TestingSales, Marketing & Operations Delivery

Global Services and Corporate Delivery

Database Administration

Global Operations & Technology(Design, Manufacturing, Supply Chain)

Dell Services & Corporate Technology(Services Business, HR, Legal, Marketing)

Global Consumer and Commercial Sales Systems

Global Financial Systems / Dell Financial Services

Infrastructure Services

Application Management Services

DES

IGN

GO

VER

NB

UIL

DR

UN = Dell Global Services