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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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...

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EMC pivots to public cloud via VirtuStream

Joe Tucci and company made a strategic decision several years ago not to enter the public cloud provider fray. Instead they took the vendor high road by indicating they would partner with cloud providers instead of competing with them. In a reversal of that strategy, EMC is now pivoting to the public cloud via their federated entity, VirtuStream. To read the complete article, CLICK ON AUTHOR’S BYLINE

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The New Leaders of the Management Software Industry

Since the inception of the modern software industry in the mid-1980s, the management software industry has been led by the big four: IBM, BMC, HP, and CA. Due to the needs of the software-defined data center and the cloud, a new set of leaders and innovators has emerged. This post will cover the new leaders, and my next post will cover the new innovators. To read the complete article, CLICK HERE NOTE: This column was originally published in The Virtualization Practice...

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Monitoring for Agile Operations

In “Agile Without Ops Is Not Really Agile,” Mike Kavis points out that the Agile Development process and the DevOps support process must culminate with a situation where operations has the tools and uses the processes required for operations itself to be agile. Therefore, Agile Operations should be the natural consequence of agility in development and support, but often this is not the case. This post is about how the right monitoring tools can be used to help operations become agile. To read the complete article, CLICK HERE NOTE: This column was originally published in The Virtualization Practice...

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