Dell EMC Business in Russia and CIS

Performance indicators

2022: Dell EMC Russian Development Center receives record revenue in the year of termination

LLC "St. Petersburg Development Center EMS" increased revenue by 49%, to 2.7 billion rubles excluding VAT - a record figure for the entire time of its activity. From the explanations to the financial accounting of the company, published in the database of the Federal Tax Service, it follows that the revenue was brought by the implementation of the software.

At the same time, the company ended the year with a loss of 32.4 million rubles.

St. Petersburg EMS Development Center is part of Dell EMC, which belongs to the Dell Technologies group of companies. The founder of the Russian legal entity is EMC Corporation, which Dell acquired in 2016.

Specialization of EMS St. Petersburg Development Center - Software Development

The company provided software development services and consulting in this area. As of April 2023, the St. Petersburg EMS Development Center no longer sells, does not serve and does not support products in Russia, it is said in the explanations to its financial reporting. This is due to the fact that in 2022 Dell Technologies, against the background of the Russian-Ukrainian conflict, decided to stop business in Russia.

At the end of 2021, 451 people worked at the St. Petersburg EMS Development Center, and by the end of 2022 there were already only 3 people there.

Salary expenses, including compensation for dismissal, in 2022 amounted to more than 1 billion rubles. In 2021, expenses under a similar item amounted to 24.2 million rubles.

As of the date of signing the accounting for 2022, the St. Petersburg EMS Development Center has open court cases in connection with the requirements of the law, the terms of contracts or obligations to individuals and legal entities whose interests were affected as a result of the company's inability to carry out its activities.

It is not yet clear when the company will complete all settlements with debtors and creditors, the explanations for its statements say.

At the end of 2022, receivables from buyers and customers to the St. Petersburg EMS Development Center amounted to about 441 million rubles, which is three times more than the same indicator at the end of 2021.

Unlike the St. Petersburg EMS Development Center, the Russian office of Dell Technologies - Dell LLC - revenue in 2022 decreased by 82%. Read more here.

History

2022: Departure from Boris Shcherbakov's company

On April 26, 2022, on his page on the social network Facebook (recognized as an extremist organization and banned in) Russia , Vice President and CEO Dell of Technologies in Russia, Kazakhstan and Central Boris Asia Shcherbakov said that this was his last day at the company. More. here

2020: Revenue growth by 23% to RUB 43.6 billion

At the end of 2020, Dell EMC's revenue in Russia amounted to 43.6 billion rubles, an increase of 23% compared to 2019, which allowed it to take 12th place in the ranking of TAdviser100: The largest IT companies in Russia 2021.

The Dell-EMC indicator for Russia includes the proceeds of Dell LLC and St. Petersburg EMS Development Center LLC and EMS Information Systems Si-I-Es LLC from the accounting statements for 2019-2020 contained in the Kontur. Focus database.

2018: Revenue - RUB 32.46 billion

Dell EMC revenue in Russia (Dell LLC, St. Petersburg EMS Development Center LLC, EMS Information Systems Si-I-Es LLC) for 2018 amounted to 32,465,043 thousand rubles.

2017: Dell EMC appoints executives in Russia, Kazakhstan and Central Asia

In April 2017, Dell EMC announced the appointment of Sergei Karpov and Boris Shcherbakov as vice presidents and CEOs of the company's Russian offices located in Moscow.

Their responsibility includes not only Russia, but also Kazakhstan and other countries of Central Asia. Karpov and Shcherbakov are responsible for the development of all Dell EMC business areas - infrastructure solutions, services and client systems - through the built sales channels.

In the photo (from left to right) - Sergei Karpov and Boris Shcherbakov

Sergei Karpov has headed EMC's office in Russia and the CIS as CEO since the fall of 2009.

When Sergey joined the corporation, the global market was experiencing a crisis and turning points that affected the IT industry, but this did not prevent him from expanding EMC's business in Russia and the CIS countries and throughout his work firmly holding EMC's leadership in the information infrastructure management market, - noted in Dell EMC

Boris Shcherbakov headed the Russian office of Dell in the fall of 2012. He served as CEO of Dell in Russia, Kazakhstan and Central Asia and was responsible for its business strategy in the region. Dell EMC calls him "an experienced strategist and leader with many years of experience and a deep understanding of the Russian and global IT market." The company says that over the four-plus years of its activities at the company, it has ensured sustainable growth of Dell's business in Russia and Central Asia.

2016: Dell and EMC talked about how they will unite in Russia

In September 2016, Dell completed its acquisition of EMC. The full completion of the merger of companies is expected no earlier than five months. In Russia, both companies will continue to work in the existing organizational format until February 1, 2017 - nothing has changed at the level of legal entities, said Dell CEO in Russia Boris Shcherbakov. After that, Dell expects the formation of a new legal entity combining Dell and EMC. Which of the Russian heads of offices will occupy which positions in it, Shcherbakov found it difficult to say.

The first thing that has changed immediately since the completion of the transaction at the global level is that the teams of the Russian offices of Dell and EMC have already begun to interact at the operational level, said Boris Shcherbakov, answering TAdviser questions. Dell and EMC Product Managers are being trained. In the sales process, the work of managers on both sides will be coordinated, they will work as one team. Dell and EMC project documentation has become open to both parties.

Now teams are being formed that are formally listed in different companies, but in fact they are working on the same project, with the same customer. Thus, several people represent one person - Dell Technologies, - explained to TAdviser Sergei Karpov, CEO of EMC Russia and the CIS.

Dell CEO in Russia Boris Shcherbakov believes that the most difficult thing in the merger process is change management

Dell and EMC Partner Channels should also merge later. According to Boris Shcherbakov, when forming a joint channel, Dell Technologies partners will have to undergo certification. He noted that Dell and EMC have many partner intersections in Russia - for example, Technoserv, IBS, Treolan (part of Lanit Group of Companies), Jet Infosystems are partners for both companies. Shcherbakov does not expect significant growth in the partner network during the merger process, but believes that some increase will be due to second-level partners.

Speaking about the main difficulties in the process of merging with EMC, Shcherbakov noted that they mainly lie in the field of management.

Technologically, everything is quite clear, Dell and EMC do not have many intersections in product lines, matching partner channels, our customers are ready for interaction - all this greatly simplifies the task, but change management - change management - must be able to cope with this. Leadership in the process of change is the most important thing, he believes.

In September, the media reported on Dell Technologies plans to optimize staff by 2-3 thousand employees during the merger process. Most cuts are expected in the U.S. Layoffs should mainly affect employees associated with the supply chain, marketing, and part of the administrative staff.

The Russian offices of Dell and EMC also do not exclude some optimization of the staff. The exact number of employees in both companies at the time of the merger of Dell and EMC is not disclosed. According to Boris Shcherbakov, the Russian staff of Dell Technologies is several hundred people.

2014: Plan to eliminate "gray" imports of its products to Russia

EMC plans to make a number of legal changes to ensure that its products can be imported into Russia directly, not through partners, Adrian McDonald, EMC President in the EMEA region, told TAdviser .

Now EMC has a plant in Europe, from where Russian partners independently take the goods. Now EMC plans to deliver goods from the plant to Russia for a specific partner, and the partner plans to take it for delivery to the final customer, the company says. At the same time, customs clearance of goods, as before, will be handled by the Russian recipient.

According to Adrian McDonald, the corporation continues to use the scheme of importing products into local markets through partners in various countries. It remains mainly where the cost of self-import of equipment is too high for EMC against the background of the size of this market.

"Our business in Russia, as well as almost everywhere, is completely partner, and for many years the import of products was carried out only through them. However, as our business in the country has grown, I think it is time to make our presence in Russia more formalized. This is a natural consequence of growing business maturity, "noted Adrian McDonald in a conversation with TAdviser

EMC notes that many foreign vendors have already switched to the scheme of direct import of goods into Russia

A source close to the company told TAdviser that the decision to switch to direct import of products was also prompted by the existing problem of "gray" imports. It happened that companies with EMC equipment that met the specification entered the tenders and offered it at dumping prices, and after winning the tender, it turned out that the delivered goods were not under warranty, and it was completely unclear where it came from, the TAdviser interlocutor said.

According to the source, there were even cases of delivery of stolen goods to customers: once, for example, it turned out by the equipment number that it was stolen in Italy.

It is expected that with the transition to the direct import scheme, the supply chains of all products will become completely transparent: partners will be billed for delivery to goods to a specific Russian customs. Thus, it will be possible to see exactly where the products arrived, and what taxes and fees which Russian company paid for it.

According to EMC representatives, direct import of goods for the company will not entail significant costs. The main question now is to rebuild the entire organization of the billing process for partners.

2012: Croc Launches Clouds Based on EMC Solutions

With EMC Avamar, CROC offers cloud-based data storage and recovery services based on its own two data centers. For the first time in the Russian market, such services for corporate clients are provided from the cloud.

2011: Opening of warehouses in Minsk, Kyiv and Almaty

EMS Information Systems Si Ai Es LLC announced in August 2011 the opening of logistics centers in three CIS countries to provide local customers with spare parts. The creation of centers is due to the rapid growth of the company's business in the region and the need to provide a high level of support. Warehouses are located in Belarus, Ukraine and Kazakhstan. Thanks to this, EMC customers in Minsk, Kyiv and Almaty will be able to receive spare parts with 4-hour delivery in 24x7 mode within the city.

At the initial stage, the centers will work with equipment, the sale of which took place after January 1, 2011. The systems delivered earlier will be provided with spare parts in the same mode. The service center in Kyiv began its work on April 1, the centers in Minsk and Almaty opened on July 1. By the end of 2011, EMC plans to pay special attention to monitoring the supply of spare parts to warehouses in order to ensure the stable operation of new centers.