Dell EMC: Convergence Is Reshaping The Datacenter
Jan26

Dell EMC: Convergence Is Reshaping The Datacenter

Trey Layton says the future of the datacenter is all about convergence and while he congratulated HPE for last week’s SimpliVity acquisition, he didn’t appear too optimistic about its prospects for success in the still small but rapidly expanding hyperconverged infrastructure (HCI) subsegment. “As related to Simplivity, we rarely see them in a deal… we don’t see them when it comes down to evaluation and comparison”, said the CTO of Dell EMC’s Converged Platforms & Solutions Division (CPSD), the group currently sitting atop the integrated infrastructure market, which includes HCI. As the world rushes to all-digital, all-the-time, somewhere there is a datacenter powering all that software making DX possible. While numbers of the overall market are sketchy, a slew of recent surveys reinforce the growing need for datacenters of all sizes: -the global datacenter market will grow at a CAGR of 10.72% during the period 2016-2020; -the modular and containerized datacenter market will grow at a 12% CAGR between 2017-2021; -the mini datacenter — a self-contained system designed to be from a single rack (micro datacenter) to up to 40 rack enclosure (containerized and aisle containment solution) — market will grow at a CAGR of 17.17% during the period 2017-2021; and, -the hyperscale datacenter market — also called cloud 2.0 — will explode 4100% between 2016-2023, from $869.7 million in 2016 to $359.7 billion in 2023. Increasingly, these datacenters are turning to integrated, or converged solutions that IDC breaks down into four segments: -integrated infrastructure and certified reference systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software; -integrated platforms are integrated systems that are sold with additional pre-integrated packaged software and customized system engineering optimized to enable such functions as application development software, databases, testing, and integration tools; and, -hyperconverged (AKA hyperconverged infrastructure or HCI) systems collapse core storage and compute functionality into a single, highly virtualized solution; a key differentiator of hyperconverged systems is their ability to provide all compute and storage functions through the same server-based resources. Not liking to play well with others, Gartner prefers to label HCI as hyperconverged integrated systems (HCIS). However, whether HCI or HCIS, this segment is still relatively small: hyperconverged sales grew 104.3% year over year during Q3, generating $570.5 million worth of sales, or 22% of the total converged market, according to IDC. It will account for just 24% of the integrated systems market by 2019, but it will reach ‘mainstream use’ and is expected to be worth close to $5 billion, stated Gartner. According to the latest available numbers (Q3), the combined integrated infrastructure and certified reference systems market accounted...

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Lenovo at SC 16 – A Commitment to HPC Innovation

How companies evolve after major acquisitions is usually interesting and seldom predictable, as numerous examples can show. That’s especially true in the rare cases where one company acquires multiple properties from another, as Lenovo has from IBM. In 2005, Lenovo purchased IBM’s PC division and assets, then repeated the process in 2014 with IBM’s System x server organization and Intel-based products. In the former case, some competitors suggested that Lenovo (then known mainly for its sales in China and other Asia markets) would be a poor steward for IBM’s Thinkpad and its solid business-class reputation. The company quickly proved those critics wrong, and steadily expanded its PC and notebook portfolios and market position. Then in Q3 2012, Lenovo achieved what many considered unthinkable and surpassed HP to become the world’s largest maker of PCs by volume, a position it continues to enjoy. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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Lenovo and Nimble Storage Join Forces

Today, Lenovo and Nimble Storage announced a joint partnership, furthering the capabilities and the reach of both companies. The near–term product offering that results from the partnership will be Lenovo’s ThinkAgile CX converged system available on October 28th, with Nimble providing the storage element. From a business perspective, the deal makes so much sense for both companies; the real question may be what took them so long. First, let’s start with the obvious benefits. Lenovo gets access to Nimble’s Predictive Flash technology for its converged offering, rounding out its storage portfolio and adding a larger scale converged offering to pair with its existing hyperconverged solutions from the partnership with Nutanix. Nimble Storage gains access to Lenovo’s substantial enterprise sales channel. While the immediate impact will likely be a boost in revenue for both companies, this partnership looks like it goes beyond the simple reselling of technology. To read the complete article, CLICK...

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Lenovo’s Powerful Potential Global Market Position

This last week I was with Lenovo going over their server, storage, and networking strategy as they continue their pivot to become one of the last remaining hardware focused vendors in a market more often defined by change than focus these days.  One of the things that strikes me as a huge competitive advantage is that unlike most technology companies that are based in either the US or Asia, Lenovo is pretty much evenly balanced between the US and China putting them closer to a future model of being more of a global company than one located in any one country. Let’s explore that this week. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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Lenovo’s DCG and Purpose-Driven Innovation

Mergers and acquisitions in the tech industry tend to follow a common script with most of the focus of reporters, analysts and other interested bystanders attuned to the acquiring company, not the one being purchased. That makes a lot of sense in most cases but not all, and Lenovo’s 2014 acquisition of IBM’s System x group is one of the outliers. Why is that the case? Because just as it did with its purchase of IBM’s PC organization and assets in 2006, Lenovo intended the System x deal to fundamentally transform its business and market focus. Prior to 2006, Lenovo was a minor, if well-regarded, China-based PC vendor. Buying IBM’s PC group, which included the Thinkpad and other well-established business product lines, allowed the company to step fully into the big leagues and, eventually, into the global PC sales leadership position it occupies today. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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