DELL Inc's revenue in China will grow more than 25 percent annually this year due to its expansion in the server and service business for enterprises following its US$3.9 billion acquisition of Perot, the United States-based company said yesterday.

The world's No. 2 personal computer maker has "transformed" its operations and seeks to penetrate the high-margin IT service market to compete with IBM and HP, said Jim Merritt, Dell's president and representative director of Dell North Asia.

"We are in the process of transforming from a hardware company only to a solution company," said Merritt during an exclusive interview with Shanghai Daily.

Dell's large enterprise business surged 44 percent annually by revenue in China in the first quarter, more than double the industry growth rate of about 20 percent, according to IDC, a US-based IT research firm.

The LE business, covering server, service and enterprise PCs, is a profit engine for Dell's Asia Pacific Japan region, especially in China and India, said Merritt, who is also Dell LE business head in the region.

Dell is also the IT sponsor of the USA Pavilion at the World Expo.