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As the dust settled after Dell’s high profile move back into private hands (see Dell ding dong done and dusted), we caught up with Dell’s UK public sector team and were surprised to find a business that is outperforming the market in many areas.
Dell is bigger than you might think in the UK public sector, in part because around 60% of the business comes indirectly via VARs, SIs, ISVs and OEMs who include Dell products as part of their solutions to public sector customers. We estimate that the UK Public Sector business unit - which includes private healthcare, life sciences and pharma as well as traditional areas of the UK public sector - accounts for some £370m ($600m) of Dell’s UK turnover and employs about 150 people. Around a third of the revenue comes from software and IT services (SITS) rather than hardware, suggesting that Dell sits just outside the Top 20 SITS suppliers to the UK public sector, but just within the Top 20 IT services rankings, with revenues from the sector of c£120m.
You might also be surprised to learn that, unlike many of its peers, Dell reports good levels of growth from its UK public sector business. It grew in high single-digits this year and the management team expects growth to remain at 6-10% over the next few years. That’s pretty impressive given that our forecasts suggest a CAGR for the UK public sector SITS market of just 1% between 2012 and 2016.
So how is that Dell - a company that we’ve frankly not been kind to in recent years and has not been performing well at a global level - is outperforming the UK public sector SITS market?
Eligible TechMarketView subscription clients can read our view - and learn more about Dell’s plans in the sector - in the latest research from our PublicSectorViews research stream: Dell surprises in UK public sector.
If you’re not yet a fully paid up subscriber to our research services, Deborah Seth will be very pleased to provide you with further details.
Posted by Tola Sargeant at '19:30' - Tagged: publicsector
