Dell EMC: Laughing All The Way To The Bank
May18

Dell EMC: Laughing All The Way To The Bank

LAS VEGAS: The second Dell EMC World is over, a variety of products and services have been unveiled, 13,500 customers, partners and staff have gone home — including me, so ignore the address above — and now comes the $60-billion-plus question, what comes next? For the ‘nattering nabobs of negativism’ like HPE’s Meg Whitman, the company is struggling to stay afloat with $50 billion in debt, it’s mired in hardware-based, commodity hell and is quickly becoming obsolete as everything moves to the cloud and IT as a Service. The reality is far different: Dell is a leader in 15 of Gartner’s Magic Quadrants; it is the largest enterprise storage vendor; it is the third largest PC vendor, but unlike many of its competitors, is growing market share and increasing ASPs. All told, the combined entity — including Dell Technologies, Dell EMC, RSA, Pivotal, Virtustream and VMware — is bringing in $75 billion a year, which is not too shabby. “It’s all about show me the money,” said Forrester analyst Glenn O’Donnell, and the company is “laughing all the way to the bank,” posting solid numbers as it closes in on its first year following the EMC acquisition. According to a recent interview with David Goulden, president of Dell EMC, the company’s focus is a long-term game, looking three to five years in the future, where they see an even more consolidated industry than today and where they are uniquely positioned as an essential infrastructure, broad-based platform. Organizations are looking to have fewer information technology suppliers, and they want the ones they retain to be strategic and more capable, he pointed out. DEW17 was all about transformation — digital, IT, workforce and security — and I reached out to a number of analysts and asked them for their views on where Dell EMC is in its own transformation, and what it should focus on for the immediate future. Their responses follow: Rob Enderle, President and Principal Analyst, the Enderle Group: The IT market is hell bent on transformation at the moment and thanks to the promise of lower taxes and a huge ramp in valuations firms are investing in capital projects at an impressive rate so the opportunity, to quote President Trump, is HUGE! Their performance is good, the merger set them back far less than most expected largely because the execution literally set the bar for efforts like this and their old VCE unit was on the forefront as the most successful converged and hyper-converged provider. And it is these concepts that appear to be having the biggest impact on firms that truly want to change. Jaguar/Land Rover was...

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Dell Swans IT Up At DEW17
May11

Dell Swans IT Up At DEW17

LAS VEGAS:  The second Dell EMC World, coming just 6 months after the inaugural event, and a short 8 months after the historic $60 billion acquisition of EMC, offered the typical mix of new and old — new products and services, and the old (in this case falling somewhere between 6-8 months marination) — the combined PC, server and storage powerhouse’s continuing focus on digital transformation. DT is another cute phrase beloved of marketers and headline writers, but it’s also one that will change everything, and whether we’re talking about business, IT, workforce or security transformation, Dell wants to be a major part of it all. “I say we’re going to be the trusted provider of essential infrastructure for the next industrial revolution,” said Michael Dell in his keynote last October. He reinforced that promise this week before 13,500 customers, partners and staff, the biggest event in the two companies’ history. From public-cloud bashing — it can be twice as expensive as on-prem — to new pricing options that change IT buying from CapEx to OpEx with the option to walk away after 12 months, Dell was his usual upbeat self, outlining the company’s string of successes in its multiple markets, while repeating their commitment to transformation. “Making digital transformation happen, making it real is why we created Dell EMC,” he said. “Dell Technologies is a force multiplier to digital transformation.” And the company’s value proposition — “number one in everything, all in one place” — resonates with their customers, he added. The company holds third place in PC sales, behind HP and Lenovo, respectively, but it grew 6.2% year-over-year, and has been increasing its marketshare for 17 straight quarters, while increasing its average selling price, said Dell. It also maintained its hold on second place in servers for the fourth quarter, with 17.6% of vendor revenue, while revenue increased 0.1% YoY to $2.6 billion. Dell was the clear leader in converged systems with 44.9% share of the market segment, and external enterprise storage, accounting for 32.9% of worldwide revenues. Dell made a number of announcements this week (which will be covered in subsequent articles), including Hyper-Converged Infrastructure advancements and cloud-like consumption models for IT from the desktop to the datacenter, the 14th generation of PowerEdge servers, open networking products, appliance and cloud data protection additions, all-flash storage systems, Software-Defined Storage and Internet of Things news. However a week prior to the event the company made a sizeable commitment to Microsoft’s Azure cloud offering. It announced Dell EMC Cloud for Microsoft Azure Stack, a turnkey, hybrid cloud platform — due out later this year — that offers ‘a simple...

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ITOM Drives Pending HPE/Micro-Focus Spin-Merge
May04

ITOM Drives Pending HPE/Micro-Focus Spin-Merge

The Hewlett Packard Enterprise IT Operations Management Summit, this week’s three-day event in Dallas, is over, but how the ITOM business will move forward when HPE’s spin-merge with Micro-Focus is completed remains to be seen. The $8.8 billion transaction, which will earn HPE a $2.5 billion cash payment and a 50.1% stake in the combined company, is expected to close August 31, at which time Chris Hsu, COO and Executive Vice President of HPE Software, will become the CEO of the new entity. Recent Securities and Exchange Commission filings included details about HPE’s software business: total revenue in the 12 months through Oct. 31, 2016 were $3.17 billion and ITOM comprised 61% of the revenue. The rest of the portfolio changing hands were: Enterprise Security Products (18% of revenue), Information Management and Governance (16%) and Big Data Analytics (5%). Revenue for all products broke down to: 28% license, 9% software-as-a-service (SaaS), 50% maintenance, and 13% professional services. While a pure-play software company offers ‘promise’, Gartner stated that adding HPE’s ITOM and ADM offerings to Micro Focus’ portfolio creates ‘significant, complex and uncertain overlaps’. Analyst Rob Enderle, who has been unimpressed with the performance of HPE and President and CEO Meg Whitman, called the software business the idea that ‘just hasn’t died a well-deserved death.’ Prior to the spin-merge Forrester Research analyst Glenn O’Donnell predicted that a software deal would play into the direction the company has taken since it separated from HP Inc. “Selling the software business fits in with the strategy of breaking into smaller pieces, which is the company’s plan now,” he said. “There’s a lot of merit in that position, as a lot of those software components are not necessarily at the core for them.” There are no recent number for the ITOM market, but as of last July one survey put it as the largest component of the IT operations and services management market, and it was predicted to grow 7.5% annually between 2016 and 2024. The global ITOSM market was valued at $17.40 billion in 2015 and it is expected to expand at a CAGR of 6.5% through 2024 to reach $30.96 billion. In addition to HPE, key vendors include: IBM, Oracle, Microsoft, BMC Software, ServiceNow, VMware, Compuware, and CA Technology. In March the company announced the release of Docker-certified ITOM monitoring solutions for Docker containers on the new Docker store, which was followed shortly after by the launch of four containerized versions of its ITOM offerings: Hybrid Cloud Management, Data Center Automation, Operations Bridge, and IT Service Management Automation. Incorporating built-in, open source container technology from Docker and Kubernetes, the four suites feature...

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Digital Transformation: Innovation With A Body Count
Apr27

Digital Transformation: Innovation With A Body Count

For the majority of the IT industry’s history the focus has been on efficiency, how to do more with less. More recently, and now lumped under the catchphrase of ‘Digital Transformation (DT/DX)’, the focus has shifted to effectiveness: it’s no longer a case of just doing things right; the emphasis is changing to doing the right things. Increasingly, DT is an extinction-level event — it’s ‘go digital or die’ — and a new survey from Dell EMC reinforces this dire forecast (or incredible opportunity). The business phenomenon Digital Transformation (AKA digitization or Industry 4.0) and its related technologies — cloud computing, Internet of Things (IoT), big data and analytics (BDA), mobility, social media and security — changes everything… and nothing. New tools and new applications drive new ways of doing things, but ultimately, it’s still about selling more goods and services with acceptable margins. According to the ESG 2017 IT Transformation Maturity Curve study conducted by Enterprise Strategy Group and commissioned by Dell EMC, only 5% of large companies are prepared to meet the IT requirements of the Digital Business era. As do so many similar studies, Dell EMC found that 95% of survey respondents are falling behind their best-of-breed competitors who are accelerating their digital business goals through IT transformation, while 71% agree that they will not be competitive without IT transformation. Given that 96% of the more mature organizations exceeded revenue targets last year and are more than 2X as likely to meet revenue goals, I have to wonder why only 71% seem worried. As Dell EMC President David Goulden noted in the press release, “… the research shows that most respondents are falling behind a small and elite set of competitors who have cracked the IT Transformation code, and they’re competing more vigorously because of it.” Trey Layton, VP and CTO with Dell EMC’s CPSD, told IT Trends & Analysis the study reinforces the company’s belief that this “is more than a business agenda, it is a digital transformation at the foundation.” A major concern is that enterprises’ foundations typically consist of separate silos, and many employees and executives feel trapped. “If you look at the IT organizations we deal with around the world, they’re in various stages of their journey to transformation… but the power centers are siloed… in compute, storage and network silos…” The biggest concern they’re finding when they talk to customers “is that the future space doesn’t have a place for them from a skill-set perspective,” he said. “CIOs are trying to break down those barriers.” Global Knowledge’s 10th annual IT Skills and Salary Survey, released earlier this month, reported that more...

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Portability Is Essential In The Multi-Cloud Future
Apr20

Portability Is Essential In The Multi-Cloud Future

Pretty much everybody agrees the world is moving to the cloud — public, private (which includes managed as a service) but predominantly the combination of both (hybrid) — and the primary questions are what to move where, and when (how is also a huge concern, but while not easy, it’s really just fiddly bits). Four years ago Cisco started using the concept of the ‘world of many clouds’ to describe its customer-choice model, and earlier this month data and analytics leader Teradata unveiled database license flexibility across hybrid cloud deployments. There has been an “aggressive uptick in interest, if not deployment of public cloud” by the company’s global 1000 customers, said Brian Wood, Director, Cloud Marketing, Teradata. He told IT Trends & Analysis that over 90% of their customers plan to have hybrid IT by 2020, and “85% want to consume as a service.” The company has 100 customers in the multi-petabyte range, with the largest customer in the 90Pb range, so licensing becomes critical, smoothing out the investments, he said. With portability, “ it’s have your cake and eat it too.” This massive move to the cloud, with a mix of public, private, hybrid and on-premise resources means portability — data, software and licenses — is a critical component. Cloud lock-in is no more palatable than vendor lock-in, and while only one vendor, with a limited set of offerings — albeit a set of significant offerings — Teradata says its newest capability, an industry first, gives its data management solution for analytics the ‘very best value proposition.’ “Not only is the database license portable across the hybrid cloud options, but so are workloads, enabled by a common code base in all deployments,” said John Dinning, EVP and Chief Business Officer, Teradata, in a prepared statement. “This flexibility is a first in our industry and means that data models, applications, and development efforts can be migrated or transferred unchanged across any ecosystem.” Looking ahead reinforces the growing cloud-first future, although this cloud shift is not just about cloud, stated Gartner. “This cloud-first orientation will continue to increase the rate of cloud adoption and, consequently, cloud shift,” said Ed Anderson, research vice president. “Organizations embracing dynamic, cloud-based operating models position themselves for cost optimization and increased competitiveness.” Spending on datacenter systems is forecast to be $175 billion in 2017, growing to $181 billion through 2020. However, while DC budgets will be relatively flat, spending on cloud system infrastructure services (IaaS) will grow from $34 billion in 2017 to $71 billion through 2020, account for 39% of total spending on datacenter systems. The latest market data/forecasts demonstrate the headlong rush to...

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5G Is Going To Be Huuuuuge… Eventually
Apr13

5G Is Going To Be Huuuuuge… Eventually

With almost 40 years of IT reporting experience under my — sadly expanded — belt I’ve covered a number of profound developments and countless others of less import, but the eventual emergence of 5G is expected to CHANGE EVERYTHING. Yes, 5G is just a bigger, faster pipeline, but to paraphrase POTUS, it’s going to be huuuuuge: speeds of 10 to 100 gigabits per second (1,000 times faster than the current US 4G average); latency of less than a millisecond (compared to 4G’s 40ms to 60ms); and support for a million connected devices per square kilometer [that’s 5/8th of a square mile for the metrically challenged]. 5G use cases include: Internet of Things (IoT); extreme video and gaming applications; explosive data density usage; public safety; Public Switched Telephone Networks (PSTN) sunset; and context-aware services. User-driven requirements include: battery life; per-user data rate and latency; robustness and resiliency; mobility; seamless user experience; and context-aware network. And from the infrastructure perspective, network-driven requirements include: scalability; network capacity; cost efficiency; automated system management & configuration; network flexibility; energy efficiency; coverage; security; diverse spectrum operation; and, unified system framework. However it is very early in the hype cycle, with final standards 12-18 months away, and products and services expected to trickle out over the next couple of years. The market should become relevant by 2021-22, and there will be 1 billion 5G connections by 2025. So what does that mean to IT and CXOs today? “This is going to be a transformative change even though a couple of years away from mainstream adoption,” said Varun Chhabra, unstructured data expert at Dell EMC. He told IT Trends & Analysis it’s going to be a “gamechanger”. It will enable enterprises and businesses to provide their  customers with “a completely different way to engage with their brands.” While still a work in progress, 5G needs to be: a “chameleon” technology that can adapt to differing demands of wireless services — whether to support high bandwidth, low latency, bursty traffic, ultra-reliable services, or a combination of these capabilities, according to a recent report from the Telecommunications Industry Association. The TIA survey found that operators are uncertain how 5G might prove to be transformative, but while ‘history suggests that while it may underachieve relative to expectations in the short term, it will overachieve in the long term.’ As with any significant technology transition, there are billions of dollars being spent to either lead the change, or at least minimize the threat of being roadkill on the faster, broader information highway. Some proof points include: -5G commercial services will launch in 2020 and there will be 24 million 5G subscriptions...

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