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

Dell 3.0 Takes Center Stage at DEW

Austin, Texas:  The critical question arising from the inaugural Dell EMC World event — at least for me, an IBM, HP/E and Dell/EMC/VMware investor — is what makes Dell’s prospects any brighter than those of its two main competitors, IBM and HPE, and the trio of enterprise vendors offering more limited portfolios — Cisco, Oracle and Lenovo? IBM has seen its sales shrink for the last 17 quarters, HPE is just shrinking, and the other contenders can only offer partial solutions — predominantly networking and datacenter servers, DBMS software and appliances, and devices, respectively. From its humble roots in Michael Dell’s college dorm room, the company has scaled the PC heights, added servers, storage, software, networking, security and services and, with the completion of the EMC acquisition, is now grappling with the IT industry’s largest acquisition and largest debt load. It has also added significant resources in enterprise storage (disk, flash and software-defined), virtualization (VMware), cloud (Virtustream, Pivotal and ECS), networking (SDN/NSX), all-in-one appliances (VCE) and security (RSA). Of course there is a lot of overlap too, and while the combined companies may point out the differences, many others will be concerned about the similarities. We’ve already seen signs of tighter focus — i.e. the sales of the enterprise content division, services and software units, and the (lower-than-expected) SecureWorks IPO — and the first workforce reductions, 2,000-3,000 jobs are expected to be cut, out of 140,000. On the good (?) news front, Dell moved into top spot in server shipments for the most recent quarter, while HPE held on to top spot in revenues; shipments grew 2% year-over-year, while revenues edged 0.8% lower. Even better, EMC was named a leader in integrated systems, and the acquisition should strengthen that position, although Gartner cautions that uncertainty will plague the new Dell-EMC-VMware combination that brings ‘multiple overlapping and competing integrated system strategies under one roof.’ The results were equally ambivalent for enterprise storage, where revenue was flat while shipped capacities shot up 12.9%; EMC tied for first place with HPE ($1.6 billion each) while Dell came in third place with a revenue increase of 14%, up to $1 billion. Prior to the acquisition EMC was pushing a software-defined everything strategy, and it’s unlikely that focus will change under new ownership. The current evolution of IT is offering customers a couple of choices in pursuit of shrinking data centers, lower CAPEX and OPEX and the ability to leverage the cloud: some form of do it yourself versus an all-in-one solution, and hardware versus software lock-in (and that at the end of the day, there’s no getting away from software lock-in), Manuvir Das,...

Read More

VCE: The Secret Behind the Magic

I visited with VCE last week and after chatting with a number of customers it was clear this company, which has been massively successful, is also incredibly unique.  VCE was created to provide a best of breed approach to hyper-converged solutions but “best of breed” approaches generally fail due to inconsistencies and conflicts between the components. That didn’t happen here.  In fact, VCE showcases that best of breed can work but only if you approach the problem very differently. Let’s focus on the secret behind the VCE Magic this week. To read the complete article, CLICK HERE  NOTE: This column was originally published in the Pund-IT...

Read More
EMC: Bringing Hyperconvergence To The Masses
Feb16

EMC: Bringing Hyperconvergence To The Masses

EMC may be busy figuring out its pending future with Dell, but you don’t have to be a rocket scientist to understand that while the overall IT market is inching along at 0.6% growth this year (albeit to $3.54 trillion), the converged infrastructure (CI) market is growing at 10X — 6.2% year-over-year (to $2.5 billion), and the hyperconverged infrastructure (HCI) market is growing at 258X, with sales shooting up 155.3% (to $278.8 million) for the last reported quarter. It’s still early days for HCI, but EMC would love to see the kinds of results VMware achieved in the server virtualization space with its latest additions, the VCE VxRail hyper-converged infrastructure appliances (HCIA) for VMware environments. The economic benefits of VxRail are very clear, said Gil Shneorson, VP and GM VxRail, EMC. You can start very small and grow as you need. “That’s very appealing,” he told IT Trends & Analysis. Customers also don’t have to worry about planning ahead. “You don’t have the upgrade event in the future… or have to face issues when you buy a new solution”. EMC has taken all the guesswork out of it, with the integration and automation (and aggressive pricing), said Shneorson. “We think we are the only ones who are doing this.” Integrating the hardware and software together, and supporting it, “that is very important and a very enticing value proposition.” They may be the only ones ‘doing this’, but there are a lot of companies buzzing around the CI/HCI market. IDC estimates that total worldwide spending on converged infrastructure will hit $17.8 billion in 2016, up from $4.6 billion in 2012. It breaks the market down into three segments: -Integrated systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software; –Certified reference systems are pre-integrated, vendor-certified systems containing server hardware, disk storage systems, networking equipment, and basic element/systems management software; however, they are designed with systems from multiple technology vendors; and, -Hyperconverged systems collapse core storage and compute functionality into a single, highly virtualized solution. A key characteristic of hyperconverged systems that differentiate these solutions from other integrated systems is their ability to provide all compute and storage functions through the same server-based resources. Gartner also divides the integrated systems market into three broad categories: –Integrated stack system (ISS) — Server, storage and network hardware integrated with application software to provide appliance or appliancelike functionality. Examples include IBM PureApplication System, Oracle Exadata Database Machine and Teradata; –Integrated infrastructure system (IIS) — Server, storage and network hardware integrated to provide shared compute infrastructure. Examples include VCE Vblock, HP ConvergedSystem and Lenovo Converged System (formerly...

Read More

Dell-EMC Buyer Sentiment Research Redux

As you might recall, ESG conducted our own research after the announcement of Dell acquiring EMC to find out what actual people — those who buy stuff — thought. At that time, we really wanted to focus on only what Dell and EMC customers thought about the deal. But recently, we conducted some additional research to specifically gain insight into what non-customers of Dell and EMC thought. To read the complete article, CLICK...

Read More