In 2009, we charted our course to become a leading provider of end-to-end solutions. We’ve been executing our strategy with discipline and consistency ever since, investing for growth in the data center, software and services.  Our Enterprise Solutions and Services business revenue was about $14 billion in FY08 and by Q3 FY13 we saw an annual run rate approaching $20 billion.  We now have critical mass in these businesses, and we need a financial reporting structure that supports their growth and success.  Today in an 8-K filing Dell announced in the first quarter of fiscal 2014, which begins on February 2, 2013, it will replace its current global customer segment reporting structure with the following product and services groups:

•  End User Computing (EUC), led by Jeff Clarke, vice chairman of operations and president Dell EUC, will include a wide variety of mobility, desktop, desktop virtualization, third-party software, and client-related services and peripheral products.

•  Enterprise Solutions Group (ESG), led by Marius Haas, president Dell ESG, will include servers, networking, storage, and related peripherals products.

•  Dell Services, led by Suresh Vaswani, president Dell Services, will include a broad range of IT and business services, including support and deployment services, infrastructure, cloud, and security services, and applications and business process services.

•  Dell Software Group, led by John Swainson, president Dell Software will include systems management, security and business intelligence software offerings.

Steve Felice, chief commercial officer, will continue to lead Dell’s global sales and marketing organizations. 

For our Q4 and full year fiscal 2013 earnings announcement on February 19th and our fiscal 2013 Form 10-K we will maintain the same global customer segment reporting structure that you are accustomed to.  Beginning in Q1 fiscal 2014, the Q1 earnings announcement in May and the Form 10-Q filing in June we will move to the new reporting structure based on the four product and service groups mentioned above.  At that time we will have revenue and profit metrics for the four product and services groups and will also provide eight quarters of historical data including fiscal 2012 and 2013 using the new reporting view.  In the new structure we will also continue to provide regional and line of business (storage, mobility, etc.) revenue results similar to what we currently provide.  We will provide further details during Q4 earnings to ensure investors are adequately prepared for the Q1 fiscal 2014 earnings announcement in May using the new reporting structure.

Moving to a product and services based reporting structure is a natural next step in being an end-to-end technology solutions provider.  Product and Service-based business unit reporting will drive benefits for our company and our customers. We’ll have better insight into the performance and competitiveness of each business, and clear accountability for delivering results. With this move, we are also facilitating tighter feedback between customers, sales and product development teams. We will be more focused on innovation and more nimble in responding to emerging customer and business trends. At the same time, the tight linkages we’ve built across Dell will foster continued collaboration as we integrate hardware, software and services into the powerful, differentiated solutions our customers need. 

As always your feedback is appreciated.