DT Success Is… Elusive
Dec21

DT Success Is… Elusive

Everybody needs it. Most everybody is trying to achieve it. And the majority of those who try fail to realize its benefits. It is digital transformation — AKA DT, DX or Industry 4.0 — the multi-trillion-dollar business phenomenon enabled by cloud computing, Internet of Things (IoT), big data and analytics (BDA), mobility, social media and security that is reshaping everything for the foreseeable future. Succeeding at DT is the next new normal, and the stakes are literally life and death, i.e. a 33% increase in speed to market; 40% increase in customer satisfaction; and 37% increase in new business revenue. On average, companies going digital expect to increase annual revenues by 2.9% and reduce costs by 3.6%, but businesses going all-in can achieve both revenue gains and cost reduction of more than 30% at the same time. So DT is an extinction-level phenomenom that is transforming all aspects of our lives, and while the stakes are high, the risks — and failure rates — are higher. The failure rates for unsuccessful digital transformation projects range from a low of only 70% to as high as 84%. The biggest DT barrier is cultural resistance to change, followed by legacy IT systems and retaining critical talent, respectively. “One of the things that our research and expertise consistently show is that shifting people and how they need to operate differently are where some of the big challenges are coming from, as more and more companies try to digitally transform,” said IDC’s Shawn Fitzgerald, research director, worldwide digital transformation strategies. Positioned as a Leader in IDC’s Worldwide Digital Transformation Consulting and Systems Integration Services 2017 Vendor Assessment, Accenture is also grappling with DT internally, as its more than 400,000 professionals visit more than 10,000 customer sites daily, said CIO Andrew Wilson. He told IT Trends & Analysis that organizations need to transform from old techniques and waterfall philosophies to much more horizontal processes and experiences. “You have to be much more real-time.” The service provider practices what it preaches, focusing on the new skills and training required to enable an increasingly mobile and dispersed workforce to make the most effective use of the latest technologies. Wilson said his company is working to connect employees through social collaboration tools like The Stream, Accenture’s version of Facebook, that enables employees to stay connected with colleagues and communities, post updates and share knowledge anywhere. It also uses video communications, including the CIO’s monthly talk show for employees that features interviews with executives from Accenture and alliance partners. A key component of the SP’s DT-delivery capabilities is called Accenture Digital — consisting of Accenture Analytics, Accenture Interactive...

Read More
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...

Read More

Has Dell Got The Winning Ticket To The DT Sweepstakes?

A significantly larger and much deeper-in-debt Dell has packed up the inaugural Dell EMC World event — 8,000 attendees — and will hold DEW2 next May in Sin City (or as I call it, Lost Wages). With the just-completed acquisition of EMC, the new enterprise business, Dell EMC, is the largest enterprise storage and server vendor, but while storage capacity and server unit shipments continue to soar, prices and margins continue to erode. In addition to the IT industry’s largest debt load, Dell added significant resources in enterprise storage (EMC), virtualization (VMware), cloud (Virtustream, Pivotal and ECS), networking (SDN/NSX), all-in-one appliances (VCE) and security (RSA). The company also has investments in 150 companies for future technologies. It moved into top spot in server shipments for the most recent quarter, while EMC tied for first place with HPE ($1.6 billion each) in enterprise storage, with Dell in third place. In total, Dell claims leadership in 20 Gartner Magic Quadrants, but where is the growth and profitability going to come from? At DEW 1.0, the company called out digital transformation (DT or DX) as its future, while beefing up its present with a variety of cloud, appliance, analytics, security and flash announcements. “I say we’re going to be the trusted provider of essential infrastructure for the next industrial revolution,” said Michael Dell in his keynote. We’re facing “the sunrise of a new era… digital dawn” and the opportunities are huge, he added. Or as GE’s CIO put it in a video at the show: “You go to bed an industrial company and wake up as a software and analytics company.” Technology is undergoing sweeping changes as a result of cloud, analytics, software-defined everything, Internet of Things, mobile and social, and these technologies/applications are helping to drive the digital transformation impacting every aspect of our lives. Dell is now the biggest enterprise IT vendor offering the broadest portfolio of hardware, software and services, while its two closest competitors fall further behind. IBM continues to struggle with growth while HPE continues to struggle with its smaller-is-more-agile-and-therefore-more-relevant philosophy. “At Dell EMC World you’re getting a look at the next great technology company,” said Dell. David Goulden, President and Chief Commercial Officer, Dell EMC, believes the company has first-mover status in both the datacenter consolidation currently driving the enterprise IT market, and in the emerging digital transformation. He also believes Dell is best-positioned because of its size and breadth. “We don’t see many customers say I want more partners.” They want fewer, more capable IT partners, not a bunch of point product vendors. He calls Dell EMC and its DT focus “a game changer.” Other...

Read More