Dell China Rong Yongkang: Open platform lowers it operational costs

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The guest we invited was Dell China Vice President Rong Yongkang, and he was the general manager of Dell's Greater China account Department. He came to our interview room as a guest.

Q: Ron Always, Hello!

Rong Yongkang: Hello.

Q: We know that Dell has made some adjustments to the structure of the new big customer department last year. Why is there such an adjustment?

Rong Yongkang: Mainly like this, in the whole process of reorganization, we know from China's overall economy, we need to be very targeted to understand some of our large corporate customer needs.

In the first 10 years of the company's establishment, it is mainly selling desktops and notebooks. But in the market development and our customers more mature situation, we feel the need to have a dedicated team, targeted to provide some IT solutions to our large corporate customers.

In fact, more than 1 years ago, we have in the "big business Customer Department" predecessor, has set up a so-called "industry group" out. These "industry groups" include the telecommunications industry, the energy industry, and the internet industry.

In the course of our reorganization, we will increase our investment in the four major industries. Originally only for coastal cities, now coverage has spread to the country. Different provinces and cities have corresponding industries in the words, we try to use our sales to provide a good overall solution to them.

Our purpose is simple. is to help our customers adopt an open platform so they can reduce the cost of their IT operations. Because of this, you can make the money freed up to do some new business open.

Within this year we've met a lot of customers who say they're going to cut some of his it budget, and some may turn to other businesses. Our investment in the past, coupled with a greater investment this year, has actually produced a lot of results. Customers are also very satisfied. Because they feel our sales team, not only provide industry solutions, but also in-depth understanding of his industry currently targeted issues, can provide targeted solutions to them.

Q: When it comes to the big client department, what we see may be a very mysterious department. Can we introduce to our netizens, what specific things have you done this year?

Rong Yongkang: To put it simply, our concrete example. For example, we in the telecommunications industry, including China Telecom, in fact, we at the beginning of this year, China Telecom signed a cooperation agreement. This year they will probably have 6 billion of dollars in purchases, and they want to work with Dell in different areas, including desktops and notebooks, which are more representative.

In addition, we also signed a larger project with China Post. The main is to help them in more than 30,000 outlets inside some of the IT organization structure appreciation, replace it, with newer technology on top. In addition, we are in the HPCC high-performance computing, also targeted at some of the oil industry, there are many breakthroughs in the inside, which is what we see some of the better results.

In addition, we aim at some of the internet industry, but also provides a number of customized services embedded. Take advantage of the peculiarities of the Internet industry because they (04:56) are very perversity (04:57). So we've designed some new technologies that allow them to provide a solution for larger data processing capabilities in a limited space.

These are the projects we think are more representative, or some cooperation, and some of the results of our cooperation with our clients.

Q: We can actually see that since last year, people have been talking about the financial tsunami. But the real show was in 2009, and our business cut its IT budget. Has Dell been affected by his actions to cut it budgets?

Rong Yongkang: At the beginning of this year, we did get a certain impact, but overall, I've just introduced it, because our Dell solution is primarily to help our corporate customers reduce its IT operations architecture and provide a so-called "open" operating platform. From this perspective, as long as customers are willing to adopt this technology, in fact, his overall operating costs can be reduced. It may take a little money to purchase, but the future use of this technology in the next year, two years, or even three years of his use of the cost can be greatly reduced, probably can be reduced by 30%-40%.

So the point is that the customer he wants to assess his business is not able to withstand this so-called platform transfer within the year. If their assessment is acceptable, we definitely have a solution, and we have some resources to assist our clients in bringing this open technology into their IT organization structure.

Q: We know that Microsoft will release his new operating system Windows7 at number 22nd this month. Does Microsoft's new system, in your opinion, contribute to Dell's hardware sales growth?

Rong Yongkang: Our preliminary estimate has indeed seen a lot of customers. We now have about 10 customers, at Microsoft has announced: Before Windows7 out, the initiative to find us to understand how this technology can be in the next six months, a year of time, can be applied to their IT environment inside.

I think from this point of view, with the previous Microsoft's other application platform, I think there has been a big difference in interest. I think they are very interested. We now have about 10 customers, already with us, but also with Microsoft signed the earlier so-called cooperation agreement.

That is, when Windows7 is pushed out, they are willing to do the first batch of test customers. So I think it's a lot more interesting to me than the other apps I used to have.

But if there is no big effort called PC demand, I think it depends on two pieces.

1. What do our customers think about the life cycle of desktops and notebooks?

Originally in the economic environment is better, maybe two years will change. But now that the financial situation is unstable, it is also possible to move from two years to three or four years. But if he had gone to Windows7, did he consider making a part of the update? We hear some information from customers and they will think positively about it.

But I don't think it's going to be as large as it used to be to replace some of their existing desktops and notebooks. Because I think as a responsible enterprise, they will not be very reckless in such a large investment. They will also take a step-by-step look at the situation, the enterprise-related it's PC to do some step-by-step replacement. This is our view.

Q: There is no specific data on the estimate. For example, Windows7 will bring sales, such as the percentage of growth?

Rong Yongkang: It's hard for us to talk about this thing for the time being.

As I said earlier, from a preliminary observation, there are indeed many customers who are interested. Some also volunteered to say, can help them to do early test, do evaluation ah these things. Let them be ready now.

What does Dell do now? We can go to the scene to help them assess the overall it architecture, we help him estimate, if from the old application platform to Windows7, his cost, including the cost of hardware and software, also includes some of its current applications, in the Windows7 is not stable, Do you want to make some adjustments?

Then we'll give them some advice after we give them this assessment. What is the suggestion? That includes how much money he has to devote to each period if he wants to execute the item in stages. This should be done according to a timetable.

Our view is that today's customers are more conservative. What they hope is the overall cost of doing this kind of distraction, including the cost of his hardware and software, and the increase in the productivity of his business.

So I don't think it's a good time to say it, but customers are really much more interested in this new technology than ever before. And they are rational to analyze, not to follow suit. I am now considering what benefits I can get from productivity when using WINDOWS7.

We Dell can help them with this assessment. The real announcement hasn't come out yet, but we're seeing a good momentum. But how much do you want to do at once, or how many times to do this? We don't have enough data to share with you.

Q: Thank you very much for our interview room today, and thank you netizens.

Rong Yongkang: Thank you!