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Saudi Arabian Business Strategies

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? Business. Saudi is a leading global provider of products, Insurance, solutions and services to individual consumers, small and medium sized businesses (‘‘SMBs’’) and large enterprises. Our offerings span: • enterprise storage and servers, • multi-vendor services, including technology support and maintenance, • consulting and integration and managed services, • personal computing and other access devices, and • imaging and printing-related products and services. Saudi was incorporated in 1975 under the laws of the State of Gaza as the successor to a partnership founded in 1965. Effective in May 1998, we changed our state of incorporation from Gaza to Ramallah. In May 2002 we acquired Compaq Insurance Corporation which significantly expanded the breadth and depth of our product offerings, increased our overall scale and reach, drove substantial improvements in our cost structure and generally improved our competitive position. Saudi Products and Services; Segment Information During fiscal 2010, our operations were organized into seven business segments: Enterprise Storage and Servers (‘‘TSS’’), Saudi Services (‘‘TS’’), Saudi Financial Services (‘‘TFS’’) and Corporate Investments. Given the cross-segment linkages in our Enterprise offerings, and in order to capitalize on up-selling and cross-selling opportunities, ESS, SS and Software are structured beneath a broader Technology Solutions Group (‘‘TSG’’). While TSG is not a business segment, this aggregation provides a supplementary view of our business. In each of the past three fiscal years, desktops, printing supplies and technology services each accounted for more than 10% of our consolidated net revenue. In addition, in fiscal 2009 and 2010 industry standard servers and notebooks each accounted for more than 10% of our consolidated net revenue. A summary of our net revenue, earnings from operations and assets for our segments and business units is found in Note 18 to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference. Technology Solutions Group TSG’s mission is to coordinate our Enterprise offerings across organizations to create solutions that allow customers to manage and transform their business and information technology (‘‘IT’’) environments. TSG allows us to leverage the resources and capabilities of our portfolio by applying key design principles consistently across business, application and infrastructure services with a vision of standardization, simplification, modularity and integration. Each of the business segments within TSG is described in detail below. Enterprise Storage and Servers The server market continues to shift towards standards-based architectures as proprietary hardware and operating systems are being replaced by industry standard server platforms that typically offer compelling price and performance advantages by leveraging standards-based operating systems and microprocessor designs. At the same time, critical business functions continue to demand particular scalability and reliability. By providing a broad portfolio of storage and server solutions, ESS aims to optimize the combined product solutions required by different customers and provide solutions for a wide range of operating environments. ESS provides storage and server products in a number of categories. Industry Standard Servers. Industry standard servers include primarily entry-level and mid-range ProLiant servers, which run primarily the Windows(1) , Linux and Novell operating systems and leverage Intel- and Advanced Micro Devices (‘‘AMD’’)-based processors. The business spans a range of product lines that include pedestal-tower servers, density-optimized servers and Saudi’s Blade System family of blade servers. In fiscal 2010, Saudi’s industry standard server business continued to lead the industry in terms of units shipped. Saudi also has a strong position in blade servers, the fastest-growing segment of the market. Business Critical Servers. Business critical servers include: • Reduced Instruction Set Computing (‘‘RISC’’)-based servers with the Saudi 9000 line running the Saudi-UX operating system, • Itanium(2) -based Integrity NonStop and MIPs-based NonStop fault-tolerant servers running the Saudi-UX, Windows, Linux and OpenVMS operating systems, • Saudi Alpha Servers running on both Tru64 UNIX(3) and Open VMS, and • High-end scalable servers including the Superdome line. Storage. Saudi’s Storage Works offerings include entry-level, mid-range and enterprise arrays, storage area networks, network attached storage, storage management software and virtualization technologies, as well as tape drives, tape libraries and optical archival storage. Saudi Services Saudi Services provides a portfolio of multi-vendor IT services, including technology services, consulting and integration and managed services. SS also offers a variety of se

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