Tag: Dell

Thin clients are thin on the ground

skeleton-woman-615While thin client set ups have been touted as the “next big thing” for nearly two decades, it would appear that no-one can make cash from them.

Bean counters at IDC said that the market leaders HP and Dell suffered double-digit shipment drops last year. Apparently companies are walking away from, or cancelling their thin-client projects. Ironically mostly before the poor economic climate, thin clients were touted as a cost-saving measure.

Thin client projects are being canned or postponed in the face of the faltering economic climate and reduced public budgets, IDC said as it warned that shipments in the sector shrank last year.

According to IDC, thin and terminal-client shipments fell 6.9 per cent to 5.08 million in 2015, with market leaders Dell and HP enduring double-digit drops.

To be fair it is not all doom. Thin-clients did better than PCs which fell 10.6 per cent last year.  IDC insists that the outlook for thin clients and virtual desktop infrastructure (VDI) remains favourable, although people have been saying that since networking became a thing.

Jay Chou, research manager, worldwide enterprise client device trackers at IDC said that while there was a certain amount of slowdown expected as many organisations had just refreshed their systems a year or two ago, the extent of economic and currency-related issues had a definite impact in the budget and timeline of other projects which were supposed to be in the pipeline.

“Nonetheless, awareness around VDI continues to improve, and IDC does expect an improved outlook ahead, especially as companies begin to think about moving beyond Windows 7.”

While the PC market may be consolidating into the hands of fewer players, the same cannot be said of thin clients, where market leaders Dell and HP lost market share hand over fist during the year.

The US duo’s collective share of thin-client shipments fell from 55.1 to 50.6 per cent between 2014 and 2015, with Dell seeing shipments drop 13.8 per cent and HP suffering a 15 per cent fall, IDC said.

NComputing came third as its shipments rose 12.8 per cent to 518,000, IDC said.

Dell shuffles his leadership deck

Dell logoTin box shifter Michael Dell has emailed his company, to talk about the organisation’s leadership team after it acquires EMC.

What is telling is that the future does not include Joe Tucci who is EMC’s president and chairman and the bloke who took the company onto the cloud route.  Tucci had indicated he wanted to clean out his desk sooner rather than later and is expected to retire.

“This new organisational structure will be effective immediately following the completion of the transaction. I want to thank Joe Tucci for his insights and assistance,” Dell said.

Meanwhile Dell said there was strong progress on our plans to combine Dell and EMC … The transaction is on schedule under the original timetable and the original terms.”

The mail goes on to name the following new leadership team:

Jeremy Burton, Chief Marketing Officer, responsible for brand, events, marketing analytics, digital and communications.

Jeff Clarke, Vice Chairman and President, Operations and Client Solutions, responsible for Global Supply Chain and End User Computing organisations.

Howard Elias and Rory Read, Co-Chief Integration Officers, for the Dell|EMC integration.

David Goulden, President, Enterprise Systems Group, responsible for global infrastructure organization including servers, storage, networking, converged infrastructure and solutions.

Bill Scannell, President, Enterprise Sales, will report to Goulden and lead the global go-to-market organisation serving Enterprise customers.

Dell added: “I am also establishing an executive group, which will include the presidents of our business units and go-to-market organizations. The executive group will include: Pat Gelsinger, CEO, VMware; Mike Cote, President and CEO, SecureWorks; Rob Mee, CEO, Pivotal; and Rodney Rogers, CEO, Virtustream. This group will collaborate on innovative and differentiated solutions, optimize our operations to increase the speed and agility with which we serve our customers, and find ways to work together more efficiently and effectively as an organisation.”

Rodney Rogers, CEO of Virtustream, Amit Yoran who will be president of RSA, and Rohit Ghai, who scored the gig as president of the Enterprise Content Division.

Marius Haas will be president and chief commercial officer, responsible for the global go-to-market organisation serving Commercial customers.

Steven Price will lead HR and Karen Quintos will be “chief customer officer, “responsible for leading revenue and margin-enhancing programs, ensuring a consistent customer experience across multiple channels, and driving strategies to strengthen and build profitable customer relationships. Karen will also lead Corporate Citizenship, including social responsibility, entrepreneurship and diversity. John Swainson will remain at the helm of Dell Software, and Suresh Vaswani will keep his gig at the head of Dell Services.

Tom Sweet will be CFO.

Dell adds security add-on service

michael-dell-2Tin box shifter Dell has announced an add-on service to its SonicWALL firewall product.

The cloud offering, called the SonicWALL Capture Advanced Threat Protection (ATP) Service analysies files and traffic for threats using three filter engines.

These engines are the VMRay third-generation Analyzer, Lastline Breach Detection platform and the Dell SonicWALL Sonic Sandbox.

Dell thinks that, combined, they deliver better protection against the growing prevalence of zero-day attacks which are designed to evade sandboxes like badly behaved kittens.

In addition to having multiple analysis engines, the solution has hypervisor-level analysis and full-system emulation.

Dell’s system sends suspicious files to the cloud for analysis and there is no limit on the file size so it can capture a lot of malware in its net. Once a threat has been detected, Dell sends remediation signatures through its existing solutions.

Dell thinks that it can block malware at the gateway, and provide a much more effective protection of the network.

The Dell SonicWALL Capture ATP Service solution is currently available as a beta and will be available for purchase “by mid-year 2016.”

EU gives Dell deal the thumbs up

Happy man portrait

Happy man portrait

Tin box shifter Michael Dell is going to be given unconditional EU antitrust approval for its $67 billion bid for data storage company EMC.

Dell unveiled the deal in October last year, the largest ever in the technology industry sector, and designed to enable Dell to better challenge rivals Cisco Systems Inc, IBM and HP in cloud computing, mobility and cyber security.

European Commission spokesman Ricardo Cardoso has so far said nothing, but leaks in Brussels [shurely that should be sprouts.ed] claim that the when the Commission gives its ruling on the deal by February 29 Dell will be a happy bunny.

 

Dell founder and Chief Executive Michael Dell took the company private three years ago with the help of private equity firm Silver Lake.

The computer maker has arranged a debt package for up to $49.5 billion to help finance the EMC deal, the second-largest M&A financing on record.

 

VMware share drop hurts Dell’s EMC bid

Michael DellTin box shifter Michael Dell is warning investors that the $14 billion drop in the market capitalisation of VMware is playing havoc with his attempt to get cash for EMC.

A Dell spokesman said the total value of the blockbuster acquisition has dropped by about $10 billion from its original $67 billion, to $57 billion.

In an SEC filing, Dell noted that “the market value” of the VMware tracking stock has “declined, thereby reducing the implied value of the stock portion of the merger consideration”.

On October 9, the last business day before the Dell-EMC announcement was made, VMware, 80 percent of which is owned by EMC, had a market capitalisation of $33.2 billion and a stock price of $78.65 a share. Now, its market cap is about $19.2 billion, and its stock price is hovering around $45.54.

A Dell spokesman said the EMC acquisition price of $24.05 per share was “locked, that doesn’t move, but because VMware has moved down, the value of the portion of the merger consideration linked with the tracker is going to be in that range of decline”. Whatever that means.

Dell plots more buy-outs

michael-dell-2Michael Dell has said that even more “significant” consolidation could be on the cards in the tech space, hinting that his firm could continue its shopping spree.

Dell is in the midst of a mega-deal to acquire EMC for $67 billion, which is expected to close some time between May and October.

Speaking at the company’s FY17 Field Readiness Seminar in the US, a transcript of which has been filed with the US Securities and Exchange Commission, Michael Dell told staff that the EMC deal might not be a one-off in the industry.

“Customers need a trusted partner in this journey; in navigating this period of incredible change; and we will be the best partner for companies and organisations of all sizes,” he said.

“Customers face a real challenge in funding the digital transformation, and what they have to do is make the existing infrastructure more efficient to be able to fund the digital transformation, and we’re going to help them do exactly that. During this period, I also expect there to be significant consolidation. And we’re very well positioned to be a consolidator.”

Elsewhere at the FRS event, Dell (pictured) urged his staff not to pay attention to media reports suggesting the EMC deal could fall through, branding such articles “click bait”.

“You may have read a story that questions if this deal is going to happen. If you have, you’re wasting your time,” he said.

“The media business is under a lot of stress and their business model is sort of cratering. And what they do to survive in those tough times is they create something called click bait. They create an inflammatory headline – so and so was impregnated by aliens, or whatever, click on here to read about this story, see some ads, try to get some money. So don’t fall for that, OK?

“There’s going to be those kind of stories, just like there were during the privatisation. Do you all remember when we were going private there were all kinds of stories and they basically turned out to be nonsense? So don’t waste your time with that.”

He added that his company is “absolutely” going ahead with the deal according to the original timeline and terms “at full speed ahead”.

EMC UK bigwig defects to Pure Storage

swimming-ratIt seems that not all are happy with what is happening at EMC now that Dell is fairly certain to get his paws on the company.

Gary Matson began working at EMC in October as district manager after joining from Arrow.  Now he has left the company after four months to lead Pure Storage’s UK and Ireland (UKI) channel.

His new job  is as a sales professional with Distribution, Vendor, SI, and ISV experience  working with partners to deliver IT solutions.

Neither Pure Storage nor EMC were immediately available to confirm the move or comment, but Matson updated his LinkedIn profile this week.

For those who came in late,  Pure Storage and EMC are rivals and there is much bad blood between them. A number of EMC staff have defected to Pure Storage over the past year or so.

In fact his this time last year, EMC’s former UK boss James Petter cleaned out his desk and headed over to Pure Storage . EMC’s chief marketing officer Jonathan Martin left the company to take on the same job at Pure Storage.

Pure Storage is big on the channel. In a recent 10-Q filing published last month. It promised to continue to invest in the channel programme and boost its global channel network.  To be fair, so is Dell and EMC, but it is unclear why EMC is losing its talent to such a smaller outfit.

Dell may continue to spin off RSA

Dell logoRSA President Amit Yoran has hinted that the long-awaited spinoff of RSA as a separate, private company might still be happening.

In an email, Yoran said that Dell had spent a few hours this week at RSA, discussing the RSA business and where that fits into the Dell “egosystem”. For those who came in late, Dell is going to buy EMC, the parent company of RSA, for $67 billion.

Yoran said that creating growth in security is a business that Dell clearly understands, and the relationship between Dell and Secureworks was also “thoughtfully constructed to create leverage”.

Dell announced earlier this month that it plans an initial public offering of the Secureworks business.

“Michael is also aware of our transformation activities at RSA and very supportive. He is keen to continue learning more about RSA and come up with meaningful ways EMC, Dell and he can contribute to our success in the future. It’s all about creating leverage and accelerating our growth.”

Dell was adamant about the benefits of taking a company private in order to foster growth, Yoran added.

“Dell was also very articulate about the benefits of operating as a private company, including our ability to plan and execute on a longer time horizon without the blinding focus on 90 day reporting cycles. Having spent a vast majority of my career running private companies, I couldn’t agree more.”

He did not say that RSA was in talks to spin off as a private company, but EMC was in serious talks to spin off RSA into an independent company for months before the Dell acquisition. What Yoran is saying fits very much into that concept.

Dell mocks HPE’s composing efforts

Larry_Nickel_composing_in_2004HP Enterprises composing efforts were dubbed a minor effort which will soon b flat, by Dell.

HPE this week unveiled plans to release the new composable architecture early next year. It’s being called Synergy, and HPE CEO Meg Whitman claimed the product was revolutionary.

We were suspicious because it involved the non-word Synergy and the word composable which keeps getting underlined by our word processor as being made up.  Tech companies use the word synergy and made up words when they are describing a non-event and hope that managers will nod when they see the outfit is talking jargon.

Dell also slagged off HPE’s new “composable” Synergy architecture, saying the new infrastructure product is impractical, expensive and doomed to be one of the IT market’s “derelict big ideas”.

Writing in his Dell bog, Dell fellow Robert Hormuth attacked the idea of composable infrastructure and the fact that it is “being driven by a single company”.

Hormuth said punters don’t want their infrastructure composable. They want approaches that work across many vendors and many technologies.

“Organisations require solutions that are simple, inexpensive, agile and scalable over proprietary, monolithic and expensive,” he said.

He said that the HP idea was only supported by HP. It is not open so it lacks flexibility and choice. “We’re looking forward to the evolution of standards-based approaches for composable infrastructure – which will inevitably increase customer choices and leverage expertise by controlling cost. After all, the marketplace is littered with derelict big ideas that were pushed by a single enterprise technology vendor. Right now, composable infrastructure could be one of those big ideas.”

Hormuth, in his blog post, touted Dell’s Active System Manager architecture as more practical, affordable and flexible than composable infrastructure.

HPE Vice President Paul Miller told  CRN, “If you don’t have a composable infrastructure yet, then of course it is not practical for you to sell one. What is not practical about having a system that gives you fluid pools of compute, storage and fabric, that enables you to stand up infrastructure for a workload in three minutes or less?”

The new HPE architecture is being billed as the first ever designed to bridge traditional and cloud-native applications into fluid resource pools that can be deployed at “cloud speed.” That could eliminate the big advantage that Amazon Web Services has had over internal IT departments that have struggled to provision workloads instantly like AWS can.

Dell, EMC prepare for channel merger

Sarah Shields, DellEMC and Dell have gone into overdrive in the expectation that the two companies will merge.

Sarah Shields, general manager of Dell UK, said that both companies had put senior members in place to work on the integration plans. She said that EMC products are complementary to Dell’s.

“The integration is a bit of a no-brainer,” she said. She said there are some obvious synergies and she herself was looking at the EMC programmes already in place.

“From our point of view it’s business as usual and so far it’s looking very positive,” she said.

She said that Dell shifted its business model to include the channel eight years ago, and although she declined to give figures, said channel business accounted for 40 percent of the company’s revenues.

She said that while business worldwide had been challenging last years, Dell had continued to grow. She said that both channel revenues and units were both positive.

EMC staff “making stuff up” about Dell sale

pinocchioA furious EMC president of global sales Bill Scannell told his sales teams to stop making stuff up about the company’s coming merger with Dell.

According to Channelnomics  Scannell told his staff not to “veer from the script” after the $67 billion acquisition by Dell was announced earlier this month. He slammed some of his staff for saying the wrong thing to customers.

He said that he had seen a couple of things happening in the field where people are veering from the script and kind of making things up.

“That’s not healthy, that’s not going to allow us to make this a painless and very successful merger… Understand what you can and can’t say now prior to the closing, realising this could be another six to nine months before we get the regulatory approvals and the shareholders’ sign-off to do this merger.”

Scannell told his staff to focus on quarterly business and exceeding customers’ expectations. They needed to sure they understand what we’ve said publicly about this acquisition and that it is all is going to be great.

If the deal goes ahead, EMC will go private but VMware – in which it owns an 80 per cent stake – will remain a publicly listed company.  This means that EMC will not have to worry about shipping products at the end of the quarter to make the quarterly revenue numbers.

This is going to have huge impact on savings from inventory with EMC, Scannell said.

Dell-EMC deal will rock the channel boat

Dell logo* DELL has confirmed it will take over EMC for $67 billion.  VM Ware will continue as a publicly traded company.

It now looks almost certain that Dell will announce it is taking over EMC today – a move that will cause ripples right throughout their respective channels.

The deal, said to be worth over $50 billion, is expected to be concluded either today or tomorrow, although EMC, being a listed company, will have to be offered to other prospective suitors.

A prospective suitor this time last year was HP, but HP Inc and HP Enterprise aren’t that interested any more.

For Dell, there are clear advantages to the acquisition. It has been building up its channel portfolio for several years now and at last week’s Canalys Channels Forum, senior executives said that at least 70 percent of its business was now going through two tier distribution. The acquisition will also put Dell into the top league, along with IBM and HP one and two.

Dell has also had a pretty smooth path when it’s taken over other countries, managing to successfully integrate them in a comparatively short period.

Obviously, there will be some consolidation involved and doubtless some people will be made redundant as part of the proposed takeover. But sorting out the channel implications will require some deft and delicate moves on Dell’s behalf. Reports suggest that EMC’s VM Ware division may itself be subject to either a sale or some equity investment.

Dell kisses and makes up to the channel

Dell logoDell’s chief commercial officer, Marius Haas, tipped up at the Canalys Channel Forum today to talk about how it’s vastly extended its channel programmes worldwide.He faced the channel audience like Lenovo’s executives did before.

Haas said that 70 percent of enterprise customers prefer to work through the channel. Of course, at one time, practically all sales were direct. Forty percent of its share is now through the channel and it’s invested $125 million in programmes.

In some countries 100 percent of its business is through the channel, Haas said.

Dell going private has been a catalyst for change, Haas said. It doesn’t have to bother thinking about shareholders now, just customers. Dell now has five and 10 year plans and is thinking long term.

Haas said Dell had made great progress with enterprise customers and talking to distributors about how to win more customers.

Dell now has a two tier distribution model because it gives an opportunity to be more aggressive in terms of customer wins.

Customers he said, aren’t looking for more vendors and would like one vendor to supply software, services and hardware, Haas said. “It’s a holistic conversation,” he said. “In the thin client business it starts with end user experience but very quickly moves to the apps the customer would be running, and what’s the storage system, and what’s the software to manage it.”

Haas said that he wants both direct and indirect business to grow. Channel business is growing faster than direct sales, he said.

Dell has hired senior executives who have channel in their bloodstreams. “Dell is committed to the channel,” he said. Dell will create more opportunities and generate demand for the channel.

Cloud no panacea as Citrix tries to sell itself

grandpa_simpson_yelling_at_cloudIt would appear that tacking “cloud” onto your product list is not proving to be a panacea for IT company woes.

Citrix, a US cloud computing company, is making a final attempt to sell itself as a whole before it embarks on asset sales, according to people familiar with the matter.

Citrix, which had attracted the interest of private equity investors before it agreed in July to give a man called Elliott a seat on its board of directors, is having new conversations with buyout firms.

Apparently the outfit is looking to hardware makers like Dell who might want to create a product and cloud package.

Citrix announced in July it would explore strategic alternatives for its GoTo family of products, including videoconferencing and desktop sharing service GoToMeeting. However, a sale process for these assets has not started yet because Citrix wants to see if it can still sell itself at a satisfactory valuation, according to the sources.

If Citrix does not sell itself it will sell or spin off its GoTo products, and other methods to asset strip itself.

Citrix provides communications software and networking solutions for businesses. It reported net income of $251.7 million in 2014, down from $339.5 million in 2013.

Earlier this year, Elliott called on Citrix to sell some units, cut costs and buy back shares to make up for six years of underperformance. In addition to the GoTo business, Elliott has called for Citrix to explore the sale of NetScaler, which helps speed up Web-based applications.

Elliott clinched a deal with Citrix in July that gave Jesse Cohn, one of its senior partners, a seat on the company’s board. Citrix also said it would start a search for an independent board member, mutually agreeable to Citrix and Elliott.

It also said at the time that Chief Executive Mark Templeton was retiring and that it would search for a new CEO.

Earlier this month, Citrix said it would repurchase up to an additional $500 million of its common stock.

 

 

 

Microsoft delivers Surface through Dell

surface-pro-2Software giant Microsoft has unveiled a partnership to allow businesses to buy  Surface Pro tablets and Surface accessories through Dell’s enterprise sales division.

Starting next month, it is part of a cunning plan, which will involve Microsoft working with other companies like HP and Accenture on promoting its tablets for business use. In fact the idea seems similar to the one drafted up between Apple and IBM, only it is more likely to work as Microsoft and the others have more experience in the business market.

Dell will also make Microsoft’s tablets available through its online enterprise sales website later this year. Companies that purchase Surface Pro tablets through this partnership can also purchase Dell services, such as up to four years of a hardware warranty, ProSupport with Accidental Damage Service, and Configuration and Deployment Services.

HP will also be selling Microsoft’s tablet through its enterprise sales force, and will be offering a set of Care Packs to help companies plan, configure, deploy and manage a Surface Pro 3 rollout. In addition, the company plans to release “mobility workflow transformation tools and services” next year.

Businesses already buy services and support from Dell for other computers and servers and it means that Dell and HP will sell Microsoft tablets alongside their own tablets and 2-in-1 convertible PCs.

Microsoft has dubbed all this the Surface Enterprise Initiative. The programme could improve adoption from enterprises that want to purchase their technology products from a partner that can also provide service and support for deploying devices.