Dell 1999 Annual Report Download - page 5

environments. The Inspiron® line is targeted to home and small business users who require the latest technology and high-end
multimedia performance.
Enterprise Systems
Workstations — The Dell Precision® workstation product line is intended for professional users who demand exceptional
performance to run sophisticated applications, such as computer-aided design, digital content creation, geographic information
systems, computer animation, software development and financial analysis. In fiscal year 2000, industry sources showed that the Dell
Precision workstation product line achieved the number one worldwide market share position in Windows NT®-based workstations.
Servers — The PowerEdge® line of servers consists of systems that can operate as file servers, database servers, applications servers
and communications/groupware servers in a networked computing environment. PowerEdge systems can be configured as desired for
use in a range of networked environments, from single workgroups to entire enterprises. The Company also offers rack-mountable
chassis for its network servers and a full line of external storage systems for increased disk capacity and data backup.
The Company recently began offering the PowerApp line of appliance server products. These web server appliances are designed to
target the needs of companies that are developing or enhancing their Internet infrastructure, including Internet service providers and
application service providers.
Storage — The PowerVault® line of storage products is designed to drive high-end storage features into standard computing
environments, meeting a wide range of customer storage needs. The Company offers a range of products within the PowerVault line
for differing customer needs. In fiscal year 2000 the Company announced the PowerVault storage area network solution, the first
storage area network from a major systems vendor for Windows NT environments.
Additionally, in fiscal year 2000 the Company acquired ConvergeNet Technologies, Inc., a private storage area network company
based in San Jose, California. As a result of the acquisition, the Company will develop products that will enable current and future
PowerVault storage devices and other storage systems to connect to any Intel®- or RISC®-based server running UNIX®, SolarisTM,
Windows NT®, Windows 2000®, NetWare® or Linux® operating systems.
Software and Accessories
The Company maintains four primary software and accessory programs to enhance its computer systems. These include DellWare,
Gigabuys®, DellPlusTM and ReadyWare®. Through DellWare and Gigabuys, the Company offers a wide range of software,
peripherals and other accessories. Through the DellPlus custom factory integration program, the Company provides installation and
configuration of customer hardware and software and asset tagging and labeling. Through the ReadyWare program, the Company
offers factory-installed off-the-shelf software applications.
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Service and Support
The Company enhances its product offerings with a number of specialized services, including custom hardware and software
integration, leasing and asset management, network installation and support and onsite service. The Company's direct relationships
with customers and its extensive online capabilities via www.dell.com enhance service delivery. The Company is further developing
its service capabilities with Internet-based services that enhance the customer experience. For additional discussion of the Company's
service and support programs, see "Item 1 — Business — Service and Support."
Service Provider Direct and Dell Expert Services
As part of its initiative to provide its customers the resources needed to build and enhance their Internet capabilities, the Company has
recently announced the Service Provider Direct and Dell Expert Services programs.
The Service Provider Direct program consists of a comprehensive package of service, support and business development programs
designed to meet the needs of the Company's top-tier service providers and Internet-intensive businesses. The Company offers
marketing, sales, services support and financing alternatives for its customers through this program.
Through Dell Expert Services, the Company has developed a variety of consulting and service alternatives for its Internet-intensive
customers. Service alternatives include e-consulting services for large and medium businesses through alliances with e-consulting
firms such as Gen3 Partners, Arthur Andersen and Lante Corporation; web hosting for small and medium sized businesses through
DellHost.com; and consulting and other services for small businesses through DellEWorks.com.
Sales and Marketing
The Company's customers range from large corporations, government agencies and healthcare and educational institutions to small
businesses and individuals. In general, the Company uses similar sales and marketing approaches across all customer groups, as
demand levels for each customer group are principally driven by similar changes in market prices and overall general economic
conditions. Within each region, the Company has divided its sales and marketing forces among the various customer groups to better
meet each customer group's specific needs. No single customer accounted for more than 10% of the Company's consolidated net
revenues during any of the last three fiscal years.