Quotes from conference call between Dell’s Steve Schuckenbrock and Sanford Bernstein

Select Quotes from Steve Schuckenbrock, President of Dell Services (April 5, 2011):

“You know the demand for IT and the torque frankly in the system for CIOs, when you balance the huge demand for efficiency with really sort of unprecedented levels of efficiency being driven through cloud like execution, and whether that’s a public cloud, private cloud, whatever the case might be, the reality is, is there’s a significant amount of standardization that’s occurring in the world. And that standardization brings all sorts of value from an efficiency standpoint, and places real pressure on CIOs to make sure they embrace those opportunities as quickly as possible.

And at the same time, there’s increased demand based on sort of any information available anytime, anywhere to basically any device for flexibility and for speed, and the ability to respond to this enormous sort of expectation. You know I guess probably best summarized by us as consumers, and our need for instantaneous gratification of any information available anytime.

And it’s this torque between these two things that I think creates a tremendous opportunity and a bit of an inflection point. Dell, I believe, is positioned exceptionally well to respond on both of those two fronts. We have terrific leadership in the standardization of technology. We are in fact very focused on standing up highly virtualized, highly efficient, you might even call it optimized data center infrastructures for our customers, and we are doing the same with our own data centers from a services standpoint.

And that certainly gives the counter balance that says, from a flexibility standpoint, you get greater speed, when there’s standardization, you can respond faster, you can innovate faster. And you get a repeatable quality and cost proposition as a result.

Cloud services is certainly something that brings new levels of efficiency as well as flexibility. When you look from a cloud services standpoint, it’s the ability to frankly deliver an infrastructure all the way through a set of applications in a manner that takes advantage of all the efficiencies of the cloud, whether that be a private cloud or a public cloud, but at the same time, responding to this need for speed. The fact that people want just in time kind of capacity, they want the ability to provision services themselves, and to be able to turn them on and turn them off at their whim, as opposed to these sort of monolithic, contractual structures that have been a part of the services industry for so long.

And from a talent factory standpoint, there is a huge need for access to the right skill sets in the right place at the right time, and sometimes those skill sets are local and consultative in nature, and other times those skill sets might be leveraged in a cost optimized location someplace around the world. But these talent factories are vital in terms of being able to help customers move their applications to the standardized or optimized infrastructure footprint that I described above. And I think all three of these capabilities are absolutely crucial to embrace what’s happening in the services space today.”

Source: See “2011-04-05-Services-Transcript.pdf”

DELL Inc.
Services Conference Call with Steve Schuckenbrock
Hosted by Sanford Bernstein
April 5, 2011

Advertisements

Dell announces plans to invest $1 billion in cloud computing

Dell announced it plans to spend $1 billion in cloud computing products and services over the next fiscal year in an attempt to gain market share in an environment currently dominated by Amazon, IBM, Microsoft, Google, Rackspace and HP. Over the next two years, the company plans to build 10 data centers devoted to deployment of cloud computing technology in the U.S., Europe and Asia. Moreover, the company plans to open a total of 22 Global Solutions Centers that enable customers to obtain consultative services about the cloud computing strategy that constitutes the best fit for their organization. In support of its plans to invest in cloud computing infrastructure, Dell announced the availability of vStart, a product that integrates server, storage, networking and management ability to provide customers with out of the box, racked and cabled virtualization hardware and software. Designed to instantly enable the virtualization of 100-200 machines in its initial configuration, vStart comes pre-loaded with VMware’s ESXi hypervisor virtualization technology but expects to accommodate a broader range of virtualization technology as the product matures. vStart 100’s technical specifications include a PowerEdge 610 server for managing the VMWare technology, 3 PowerEdge R710 servers, Dell EqualLogic™ PS6000XV iSCSI storage, Dell PowerConnect™ 6248 switches and Dell management tools.

Dell’s decision to invest heavily in cloud computing marks the most explicit recognition from the Texas based IT corporation that the market for PCs and data center servers is insufficient to sustain its growth in an enterprise environment that increasingly seeks IT standardization and efficiency, and a consumer environment that demands access to information in real-time, 24-7. Dell has yet to announce what cloud computing software will power its IaaS and PaaS offerings in the data centers it intends to build. One possibility is that the IaaS platform will feature the OpenStack platform while the PaaS leverages Microsoft Azure. In an April 6 press conference in San Francisco, Steve Schuckenbrock, Dell’s president of Dell Services, noted that Dell’s forthcoming cloud computing data centers will house “public and private cloud capabilities.”