Dell Russia

Main Article: Acquisitions and Sales of Dell Assets

Performance indicators

2022

Reduction of the combined revenue in Russia by 78% to 12,513 million rubles

At the end of 2022, the combined revenue of the American company Dell in Russia decreased by 78% - to 12,513 million rubles. The indicator includes the proceeds of Dell LLC and St. Petersburg EMS Development Center LLC from the financial statements for 2021-2022. Excluding VAT. In the ranking "TAdviser100: The largest IT companies in Russia 2023," such an indicator allowed the company to take 44th place.

Dell's Russian office estimated its costs of terminating contracts in Russia at 3.4 billion rubles

In 2022, the Russian office of Dell Technologies - Dell LLC - estimated its obligations on the upcoming costs of terminating contracts at about 3.4 billion rubles. This follows from the explanations for the company's financial accounting for 2022, published in the database of the Federal Tax Service.

The company also incurred expenses related to the write-off of inventory (stocks) in the amount of about 493 million rubles. In 2021, Dell LLC did not have such a line of expenses. And about 67 million rubles cost her the liquidation of fixed assets.

Expenses related to amicable agreements in the reporting period amounted to 915.4 million rubles. But the Russian office of Dell Technologies also concluded amicable agreements, which brought him income - a volume of 787 million rubles. And the amount of about 634 million rubles should be paid to VMware International Unlimited under the settlement agreement on reimbursement of expenses.

Dell Technologies in 2022 decided to stop commercial activities in Russia "(photo - Thomas Peter/Reuters)"

The explanations to the financial account reflect that in 2022 Dell LLC received gratuitous financial assistance from the founder, who, with a share of 99% of the authorized capital, is a Dell Technologies legal entity based in the Netherlands.

Dell LLC spent about 615 million rubles on such types of wages as compensation for using a car, bonuses to the best employee, vacation pay over the limit and additional payments. For comparison, in 2021 this item of expenses amounted to about 30.8 million rubles.

At the same time, the general director of Dell LLC received in 2022 a bonus almost 2.5 times more than a year earlier - about 26 million rubles. At the same time, under the general article "remuneration" to the general director, the amount in 2022 came out almost 2.7 times less - about 3.9 million rubles. The position of general director in the company until December 2022 was held by Boris Shcherbakov, and after he was replaced by Natalia Alyushina.

Dell LLC was engaged in the import of Dell Technologies goods for their subsequent sale in Russia, and since 2019 it has also provided services for installing, configuring equipment and software, customer maintenance services, promoting the Dell Technologies brand and goods under this brand in Russian and foreign markets. Plus, the company provided certification services for Dell Technologies products and assistance in obtaining permits for it.

As of the end of 2021, Dell LLC employed 212 people, and by the end of 2022, 4 people remained.

The explanations to the financial accounting indicate that since March 2022, Dell LLC does not conduct commercial activities, does not sell, does not serve and does not support products in Russia. But the company managed to trade 9.8 billion rubles without VAT, which is 82% lower than its revenue figure in 2021. About 9.36 billion rubles brought her the sale of goods.

Development centers

Dell St. Petersburg Development Center

As of October 2013, in the St. Petersburg development center Dell Software, created on the basis of the local office of Quest Software (headquartered in the USA), which Dell acquired in 2012, there are about 250 software engineers, the company told TAdviser in October 2013.

In addition to St. Petersburg, this development center also has a branch in Moscow. According to Dell representatives, since the center joined the company, its staff has practically not changed: about 160 developers work in St. Petersburg and about 80 developers in Moscow. The St. Petersburg branch is headed by Alexander Ivanov, and the Moscow branch is headed by Vladimir Gusarov.

"The software business is one of the really key investment areas for Dell, and it's great to have such a resource here in Russia," says Tony Parkinson, Dell's vice president for enterprise solutions in the EMEAT region. "Having such a center allows Dell to be closer to local customers, creating solutions focused on their needs."

Tony Parkinson also notes that the Russian center is very important for the company, since it performs developments not only in the interests of local customers, but also participates in the creation of global products in cooperation with international teams.

A significant part of the center's work, in particular, is related to the development of solutions for improving the management of IT infrastructure, databases and various applications, say Dell.

Dell Software programmers in St. Petersburg, for example, are involved in the development of solutions that simplify the management of Microsoft SQL Server DBMS. Dell has a number of solutions: to quickly diagnose and fix SQL Server problems, to monitor and analyze its workloads, to simplify the process of writing, editing and servicing SQL Server objects, etc.

Such solutions do not compete with Microsoft, but complement its product, notes Tony Parkinson. The company creates solutions with similar functionality with the participation of St. Petersburg developers for Oracle DBMS.

In addition, programmers at the Dell Development Center in St. Petersburg are doing a lot of work related to web technologies, adds Tony Parkinson.

Big Data Technology Center in Moscow

In September 2014, Dell announced the opening in Moscow of a practical center for the promotion and development of technologies for analyzing ultra-large data - Big Data Open Lab - an open platform for testing new solutions and launching pilot projects.

According to the company, the laboratory provides the infrastructure necessary to launch projects in test mode in order to solve specific tasks of potential customers and partners, including infrastructure optimization, increasing availability levels, building a scalable platform.

Dell explains that all organizations whose activities are associated with large amounts of information will be able to receive in the new center an expert assessment of the effectiveness of using Big Data technologies in solving specific problems and technological support for the implementation of test projects.

Dell Big Data Technology Center operates on the basis of ISP RAS

The technological basis of the center is Dell solutions, and it will work on the basis of the Institute of System Programming of the Russian Academy of Sciences (ISP RAS). Dell explained to TAdviser that the center's services will be free, and Russian organizations will be advised by specialists from both their company and the institute.

The Russian representative office of Dell also noted that in addition to the ability to help companies solve their problems with the help of innovative technologies, Big Data Open Lab is also a "practical example of the integration of Western and Russian technology companies."

"In the modern world, Big Data technologies are one of the most important areas in the development of the IT industry, both abroad and in Russia. Their competent use and more active involvement in various sectors of the economy, in science, in education greatly contribute to increasing the competitiveness of Russian science and production, "said Viktor Ivannikov, director of the ISP RAS, in connection with the opening of the laboratory

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History

2024: Central Bank demands 165 million rubles from Aquarius due to Dell's departure from Russia

On January 19, 2024, it became known that it Central Bank of Russia (CB) had sued the manufacturer of domestic computing equipment and IT solutions "PC Aquarius." The reason for the proceedings was the failure to fulfill the agreement on the provision of technical support for the equipment of the company, Dell which left the Russian market due to the current geopolitical situation. More. here

2023: Claim from Sberbank for tens of millions of rubles

At the end of September 2023, information appeared that Sberbank had filed a lawsuit against Dell LLC, a Russian legal entity of the American corporation Dell. According to the file cabinet of the Moscow Arbitration Courts, the amount of claims is 57.6 million rubles. The third party in the proceedings is VMware International Unlimited Company.

According to CNews, the lawsuit may be related to VMware's failure to fulfill its technical support agreement obligations. The Russian Dell was VMware's official representative in Russia, reselling its services. However, in the current geopolitical situation, the company left the Russian market, after which numerous lawsuits from domestic customers fell against it. The essence of the claims boils down to the fact that Dell, having assumed certain obligations to Russian customers, did not fulfill them, having escaped from the Russian Federation. Representatives of Sberbank as of the beginning of October 2023 do not comment on the situation.

Sberbank filed a lawsuit against Dell LLC

In November 2022, a lawsuit against the Russian representative office of Dell was sent by the Russian IT distributor OCS (O-Si-Es-Center LLC): the amount of claims amounted to 2.7 billion rubles. However, a month later, the proceedings were terminated, and the court session itself was held in a closed format. A similar situation has developed around the claim of Atom Atos, which wanted to recover about 77 million rubles from the Russian structure of Dell: this appeal was withdrawn.

In addition, several other Russian companies filed lawsuits against Dell LLC: the total amount of claims is more than 1 billion rubles. In May 2022, the Moscow Arbitration Court arrested over 778 million rubles in the accounts of the Russian representative office of the American Dell, which was insisted on by the system integrator Talmer^[1]

2022

Appointment of Natalia Alyushina as Head of Dell's Russian Office

In December 2022, Natalia Alyushina was appointed General Director of Dell LLC, the Russian representative office of the American computer manufacturer Dell. She also headed another Dell subsidiary in the Russian Federation - the St. Petersburg EMS Development Center. Read more here.

Lawsuit from OCS Distribution for 2.7 billion rubles

On November 28, 2022, it became known about the lawsuit that the Russian IT distributor OCS filed with the Russian representative office of Dell. The application was sent to the Arbitration Court in Moscow, it refers to claims for 2.7 billion rubles.

According to TASS, citing a file cabinet of arbitration cases, the lawsuit was filed by O-Si-Es-Center LLC on November 28, 2022. The third person in the case is the Russian service provider Arvato, which is part of the German concern Bertelsmann.

OCS Distribution filed a lawsuit against Dell for 2.7 billion rubles

Earlier, organizations subordinate to the Ministry of Transport and the Ministry of Education of Russia also filed lawsuits against the Russian structure of Dell. On October 24, the "ProtectionInfoTrans" of the Ministry of Transport of the Russian Federation filed a lawsuit against Dell LLC. At the same time, a lawsuit from the structure of the Ministry of Transport was filed against the company "Airus Technologies" (engaged in the wholesale trade in computers). The amount of claims in this case was over 22.9 million rubles. On November 10, 2022, a lawsuit was also filed against this Dell unit from the analytical center of the Ministry of Education of the Russian Federation. Details of the lawsuits were not disclosed.

According to Gleb Sitnikov, partner of the Yurlov & Partners law firm, it can be assumed that the claims are related to the conclusion, execution or termination of government contracts.

As the lawyer notes, the defendant in these claims is the Russian legal entity Dell, there should be no difficulties in implementing decisions if the court sides with the plaintiffs.

They can only be associated with their lack of property at the time of execution or simply with the difficulties of executing specific court decisions, the lawyer notes, adding that problems in the execution of decisions could have been if a foreign person had acted as the defendant.

In fact, claims from the Ministry of Transport and the Ministry of Education are the first claims of Russian government agencies against the American corporation, filed after its departure from Russia in 2022.^[2]

Claims from Russian companies for 1 billion rubles

At the end of August 2022, it became known about a claim for 15.6 million rubles, which the metallurgical and mining company Evraz filed with its Russian subsidiary Dell. Earlier, similar complaints were sent by Talmer, DCLogic, ITCost and Croc Incorporated, as well as Treolan. The total amount of claims exceeds 1 billion rubles.

According to lawsuits by Russian companies, Dell has stopped providing technical support for server equipment in the country, although it previously received payment from customers for these services for several years in advance. The Russian office of Dell refused to pre-trial resolve the issue of non-provision of support to customers. In the courts in these cases, a Dell representative did not recognize the claims.

Russian companies filed lawsuits against Dell

The court left Evraz's statement without movement until the end of September 2022: it omits documents that would confirm the plaintiff's compliance with the claim or other pre-trial order, Vedomosti reported, citing a file of arbitration cases.

At the suit of Evraz, the third party is CROC Incorporated. At the end of June, she filed a lawsuit against Dell to recover a debt of 15.1 million rubles, follows from the data of the Moscow Arbitration Court. After that, "CROC" asked the court to arrest the Dell accounts for the same amount, but the court refused this petition. The court found that the plaintiff "did not present sufficient evidence to the court to substantiate the motion." They had to testify that failure to take measures "may make it difficult or impossible to execute the decision on the stated requirements," the court ruling notes. The next hearing on the case is scheduled for mid-September 2022.

Anastasia Podkovko, head of the dispute resolution practice at the Pleshakov, Ushkalov and Partners law firm, in a conversation with the newspaper called a rather rare situation when in similar cases considered at about the same time, judges make different decisions on interim measures.^[3]

Dell Russia says goodbye to employees. August 30 is the last day of their work

August 30th for employees Dell Russia (Dell LLC) will be the last day of work in the company. TAdviser was told about this by a source of leadership level close to Dell Russia. According to him, all employees will receive severance pay: "no one was offended."

Before the company began to curtail its business in Russia against the background of geopolitical events, about 250 people worked in it, says the interlocutor of TAdviser. By this time, approximately 10% of Dell Russia employees had been relocated to other countries of the company's presence: "they went wherever they could, including Egypt and Kuwait." They will continue to work for Dell in new locations.

There are also programmers who work in the development center in St. Petersburg. They will continue to work for now, but in the future, most likely, they will do this no longer within the framework of the Russian legal entity.

Dell is winding down Russian business "(photo - Sam Hodgson/Bloomberg)"

Despite the fact that work for employees will stop on August 30, the local legal entity Dell Russia will continue to operate for the time being: the company still needs to make various payments, including to partners. This may take some time, maybe until the end of the year, explains the interlocutor of TAdviser.

In addition, the company is now discussing how to resolve the issue of supporting Russian clients under already concluded contracts.

In April 2022, we recall that the CEO of Dell Technologies in Russia Boris Shcherbakov, who had worked for the company since 2012, left the company. A source close to the company is not aware of what Shcherbakov plans to do now. He will probably just retire and maybe continue to write books, suggested TAdviser. Boris Shcherbakov has already published several of his books. The latter, published in 2021, is called Hard & Software. How the Russian information technology market was created. "

According to the database of legal entities Kontur.Fokus, "in 2021, Dell LLC earned 55.1 billion rubles with a turnover growth of 31%. Net profit amounted to 1.1 billion rubles. While with such financial indicators it is one of the largest offices of foreign IT companies in Russia in terms of revenue, it is not necessary that they reflect the full volume of Dell's business in the country: foreign IT companies often conclude part of the contracts through their foreign legal entities.

Back in late February, the company announced the suspension of sales in Russia amid a changed geopolitical situation. In this regard, some players in the market predicted^[4], the likelihood of a shortage of server equipment and components in the Russian market due to the fact that Dell occupied a significant place in it.

According to IDC analysts, according to the results of 2021, Dell took first place in the Russian server market with a 21% share. In second place was the Russian Yadro with a share of 17%, in third - from 15% - the American HPE.

Since April, according to the file cabinet of arbitration courts, Dell LLC, which had not previously appeared as a regular defendant in any litigation, has received several lawsuits from various companies demanding money tied to different obligations. The most famous, perhaps, was the lawsuit from Talmer, which demands to recover a debt of 778.5 million rubles from Dell LLC^[5]. A third party, the Megafon telecom operator, is also present in this proceedings.

Among other plaintiffs who appear in the file cabinet in cases with Dell LLC in recent months, Evraz, CROC, Treolan are also listed.

The accounts of the Russian subsidiary Dell for 778 million rubles were arrested

On April 6, 2022, it became known about the arrest of the account of the Russian representative office of Dell. The Moscow Arbitration Court took such interim measures at the suit of the system integrator Talmer, who accused the American manufacturer of IT equipment of unjust enrichment and demanded to collect a debt of 778.5 million rubles.

As Kommersant writes with reference to the materials published in the file of arbitration cases, the court seized the accounts of Dell LLC, citing the presence of "a real threat of difficulty or inability to execute the judicial act in the future."

The accounts of the Russian subsidiary Dell for 778 million rubles were arrested

The application of Talmer LLC to take interim measures to satisfy... Seize property and cash, including cash that will go to all open bank accounts of Dell LLC, in the amount of 778 576 223 rubles 21 kopecks, the court ruling says.

Talmer sued the Russian Dell structure in early April 2022. The plaintiff, he claims, made an advance payment for the provision of technical support services for the cloud services of the American VMware in Russia to Dell LLC, but Dell did not fulfill its obligations. The Russian company demanded to collect the debt.

Dell LLC is the official representative of VMware in Russia and essentially resells VMware technical support services, the court ruling specifies.

At the same time, despite the termination by VMvare of the provision of services in the Russian Federation, the defendant did not take any action on an alternative method of fulfilling obligations and did not return advance payments to Talmer LLC, the court materials said.

The lawyer of the Yakovlev & Partners legal group, Liubov Khokhlova, in a conversation with the newspaper, suggested that the court took into account both facts: both the suspension of Dell's activities and the registration of the parent company in an "unfriendly" country.^[6]

2021: Revenue growth by 30.7% to RUB 56,936 million

At the end of 2021, Dell's revenue in Russia amounted to 56,936 million rubles, an increase of 30? 7% compared to 2020, which allowed it to take 10th place in the ranking of TAdviser100: The largest IT companies in Russia 2022. The total revenue of Dell LLC and St. Petersburg EMS Development Center LLC from the financial statements for 2020-2021 was taken into account. excluding VAT.

2020: Revenue in Russia - 43,562 million rubles

At the end of 2020, Dell's revenue in Russia amounted to 43,562 million rubles.

2016: RSP sued Dell almost 80 million rubles for non-payment of "tax on blanks"

The Russian Union of Copyright Holders (RSP) won in the spring of 2016 the ninth arbitration court of appeal against the American company Dell, which now must pay the organization 79.6 million rubles in copyright plus interest for private copying of music. Vedomosti writes about this with reference to the court decision^[7] to the^[8][9]

The parties have been suing for a year. Dell has repeatedly tried to prove that it should not pay the so-called "tax on blanks" - deductions in favor of copyright holders from professional equipment (servers, workstations and other professional drives). The company operated by the fact that the tax is collected only from home equipment, which professional equipment is not.

Earlier, in February, the Moscow Arbitration Court sided with Dell, which refused the RSP to recover 87.3 million rubles of debt on the author's fee from the American computer manufacturer. However, the organization managed to win an appeals court, which reduced the amount of claims. Dell now intends to challenge the court's decision.

2014: Dell's corporate sales in Russia doubled

According to the results of 2014, Dell's corporate sales area in Russia approximately doubled , Konstantin Isaakyan, Sales Director, Consumer, Small and Medium Business Dell in Russia, Kazakhstan and Central Asia, told TAdviser in January 2015 . If it were not for the economic situation in the country, growth could be even higher, he said.

Dell's representative explains the dynamic growth indicators for the year by the fact that the company has begun to pay close attention to business development in a number of vertical industries, such as the public sector, telecom, the oil and gas sector, as well as in the banking sector. Moreover, regarding banks, we are talking mainly about organizations of the SMB segment, says Konstantin Isaakyan. The company also began to pay closer attention to sales to customers in retail.

Especially for the development of sales by verticals, good specialists were hired in certain industries, who ensured the winning of tenders in the indicated segments, mainly for the supply of servers and DSS, says Konstantin Isaakyan. Previously, the company was poorly represented at such tenders, and competitors got the victory in them, he adds.

Dell in Russia hired new specialists to develop sales in a number of vertical segments

A Dell spokesman also noted that in 2014, his company as a whole formed a stronger local team compared to what it had previously. Its total number is not so large compared to the local teams of most of the world's competitors - less than 100 people, Isaakyan notes.

What was the share of corporate sales in the overall structure of Dell's business in Russia in 2014, the company did not disclose. Earlier, Dell noted that they are aiming to increase it. As for sales to the consumer segment, presented mainly, laptops Konstantin Isaakyan notes that this direction also demonstrates good growth rates, despite the fact that there is no significant focus on it - plus about 20% over the past year. It was mainly provided by the sale of new products, such as tablets based on, Android as well as monitors in the lower price segment.

A Dell spokesman notes that, according to various estimates, his company has a share of about 5% in the Russian laptop and monitor market. In order to make a qualitative jump in share and approach a share of 10%, a more aggressive market policy is needed, which usually leads to a loss of money, because the consumer segment is very sensitive to price, says Konstantin Isaakyan. Today, the company is not ready for this, he adds. Naturally, a number of competitors will allow the company to slightly increase its share in the laptop market, Dell believes.

Due to the fact that 2015 promises to be difficult, in particular, a reduction in the IT market to 40-50% is expected in a number of areas, which is already visible in January 2015, this year it is necessary to set goals for growth already relative to the market, and not the company's business volumes year by year, as it was earlier, summarizes Konstantin Isaakyan.

2012

Office in Russia headed by Boris Shcherbakov

September 10, 2012, was the first working day of Boris Shcherbakov as CEO of Dell in Russia. The last CEO of the Russian Dell was Nick Rossiter, who headed it for just a few months since August 2011.

Sales of Dell corporate solutions in Russia increased by 70%

In 2012, Dell sales to corporate clients in Russia grew by about 70%, the company told TAdviser in October 2013. Dell Vice President for Corporate Solutions in EMEA Tony Parkinson expects a "confident double-digit" growth in this area in Russia and in 2013.

The company does not disclose local revenue indicators in absolute terms, saying only that the share of Dell's corporate business in Russia in 2012 amounted to about 39% of total sales. According to Parkinson, the main drivers of growth in this area were server platforms, DSS, as well as network solutions. In some of the latter, Dell is a relatively new player in the market, but it can successfully compete with Cisco, he adds.

In addition to network solutions and an updated line of servers, among the products for corporate clients that Dell has recently launched on the Russian market are the PowerEdge VRTX "office data center," a full line of tablet computers, etc.

Tony Parkinson also notes that with a full line of solutions for the corporate sector, Dell was introduced in the country not so long ago - only since last year. In 2012, the company significantly increased investments in the development of corporate business in Russia and over the year approximately doubled the number of employees of the local division for corporate solutions, the company says.

In 2012, Dell increased investment in corporate business development in Russia

Talking about the reasons why Dell increased investments in the development of corporate business in Russia and began to offer all products for this sector in the country only in 2012, Parkinson notes that, in his opinion, this is due to the ratio of the level of readiness of the market itself and the need for other investments.

"We cannot invest in all regions at the same time. When we felt that in Russia the most suitable time for the development of Dell's corporate business, we increased investment, "he says

According to Tony Parkinson, as of 2013, Russia is one of the three fastest growing markets for Dell in the EMEA region. Other regions showing the fastest growth here, he calls the countries of middle and central Africa and the Middle East. A fairly confident growth is also observed in the countries of Eastern Europe.

The vice president for corporate solutions at Dell in the EMEA region notes the increasing importance of IT in the Russian corporate sector: if earlier IT services were perceived as part of the back office, now it is one of the key engines for business development, he says. The company is also interested in denser work with government agencies, adds Tony Parkinson: significant funds are allocated in this area for modernization projects and the creation of e-government.

2011

At the end of 2011, the company did not enter the top five largest computer suppliers in the Russian market.

2010: Revenue of $200 million instead of $1 billion

Dell was unable to achieve the previously announced plans, according to which it intended to earn $1 billion in Russia by 2011. The manufacturer's revenue in 2010 amounted to about $200 million.

According to CNews, approximately $90 million of the company brought consumer and corporate directions, the volume of revenue from services amounted to about $20 million, sources in Dell said.

Previously, Dell had more Russia serious plans. In July 2008, the company's regional president EMEA , David Marmonti, told CNews that Dell expects to achieve a local market turnover of $1 billion by 2011. In addition to sales in the corporate and consumer sectors, it was planned to develop the service direction.

The head of Dell's Russian office, Oleg Zhukov, does not officially name the company's revenue in Russia and recalls that Marmonti's statement was made on the eve of the crisis, in early 2008. "During the crisis, the turnover decreased for all IT companies. Now Dell's total turnover in Russia has already exceeded the pre-crisis level, and plans to reach revenue of $1 billion, of course, remain, "he added.

The performance of Dell's Russian office surprised competitors. "$200 million is a very small figure," said Gleb Mishin, CEO of Acer in Russia. For comparison, Acer in 2010 shipped $1.2 billion worth of products to Russia.

Eduard Voronetsky, CEO of the Russian PC manufacturer K-Systems/Irbis, on the contrary, considers Dell's revenue from consumer products to be somewhat overestimated: "In my opinion, this company is almost invisible in consumer retail."

The overall strategy of Dell's activities in Russia, according to its representatives, generally corresponds to the global one: for example, the company is focused on the development of the service area, in particular, the provision of consulting services within the framework of interaction with partners.

According to Oleg Zhukov, work has now begun in Russia to create its own Dell expertise center, its opening is scheduled for the summer of 2011. In total, he says, there are now five Dell expertise partner centers in Russia.

In addition, Dell has begun developing a network of regional offices, and by the end of 2011 plans to expand its presence to all the largest regions, where the majority of customers and partners are concentrated, Zhukov says.

Notes