Dell held its second annual Dell World conference in Austin, Texas last week. This young and energetic conference was a refreshingly honest
In addition, the Dell World Solutions Showcase was in many respects a partnership event that they exposed to customers.
Dell has identified five key industry forces as being critical for its long-term success; they are five hugely important trends for the rest of this decade and beyond.
Cloud
Dell’s key differentiator here is the message that IT transformation is really modernization.
They delivered a strong message of immediacy toward continuous services, as opposed to the usual IT language of delivering assured “uptime.” What used to be called high availability is now becoming commonplace in cloud services, but it is being done with a new generation of low cost, power efficient hardware running new software stacks.
Dell is betting big on open systems-based choices for systems software, provisioning and management, and are investing internally in OpenStack. They have listened to their cloud customers’ message that the open interfaces between layers in these new software stacks are key drivers for boosting operational efficiencies and reducing costs. And that is key to the idea that scale matters – that there is a place for cloud services for customers who cannot achieve scale, and that cloud services are a partner for IT. Dell is building its own cloud capabilities, and plans to leverage its own scale to help smaller customers bridge to larger services.
BYOx
Dell is taking a holistic approach to solving the BYOx, addressing the devices, the data, the infrastructure, and the application development. Dell is leveraging no less than five of its major IT acquisitions to do this including Wyse, SonicWALL, KACE, SecureWorks, and Quest, as well leveraging their 30 years in the device market.
Dell has been ranked by many as the #1 company in social media and they have numerous
They’ve also lit up Tech Page One, a technology news aggregator that is not limited to discussing Dell technologies. It’s somewhat of a novel concept at this level of play, and the staffers at the Tech Page One booth were zealous about their mission.
Big Data
Dell’s challenge here is how it competes with the likes of IBM, who has been developing expertise in artificial intelligence and analytics for decades, and HP, who is investing billions of dollars in acquiring relevant resources and experience. Dell’s competitive approach is elegantly simple – do not reinvent the wheel, instead acquire talent and partners who are using publicly available software systems. Following the cloud, Dell is strongly supporting open systems and tools in pursuit of big data.
Dell is becoming an expert in open source big data analytics techniques and tools, and is building the cloud resources needed to bootstrap big data projects for small and large customers. This is an impressive business vision in its own right.
Security
Dell is positioning SecureWorks as a big data based solution – aggregating security threat profiles from
Their SecureWorks based services tie client end-points to networks, to applications and data in the cloud, and to integrated monitoring. And to additionally differentiate from Intel, Dell enables customer choice in endpoint malware and antivirus solutions. Again, it is an impressive focus on the core of end-to-end security without wandering off in the weeds and trying to own all of the pieces and lock customers into proprietary product ecosystems.
Sound Strategy
These five trends describe Dell’s differentiated, forward-looking strategy better than any single “pure” or “convergence” strategy label. I am still digging in and asking Dell lots of questions on Dell’s “adaptive” IT positioning, but their Dell World disclosures all make sense.
Dell pulled these trends together with a wide range of customer testimonials, war stories, vingettes, and use cases. They now have an impressive focus on vertical industries and their size enables a depth of experience in those verticals that can compete with their more established rivals. Dell clearly stated that they will consolidate core solutions that are critical across verticals, and will pick best-in-class partners within verticals.
Overall, Dell’s message is interestingly pragmatic. Dell listens and understands a customer’s challenges, and then does what it takes to address those challenges without the hype and proprietary systems that other service providers typically foist on them. This could be the beginning of something big for Dell. Their strategy is sound and spot-on and the execution and perseverance will need to be flawless and continued for the chance of big-time success.
Disclosure: I have previously consulted for Dell.
Note: This article includes contributions by Paul Teich, analyst at Moor Insights & Strategy.