Michael Dell says that customers want fewer vendor partners and he knows of a company which has swallowed so many companies that they only need to deal with just one.
Dell said in an interview with Bloomberg Television at the VMworld conference in Las Vegas that one of the things that he had seen with all his business cocktail mixing is that customers actually don’t want to have more partners – they want fewer..
“We’ve seen really a fabulous response – revenue synergies greater than we thought, coming faster than we thought. Dell, EMC, VMware go together like peanut butter and chocolate,” he said.
Dell is facing pressure from cloud providers such as Amazon and Microsoft and merged with EMC last year to bring together two traditional hardware companies in one of the biggest corporate tie-ups in history, valued at about $67 billion when it was announced. As part of that deal, Michael Dell also picked up majority ownership in companies such as VMware, whose virtualisation software lets businesses cram bigger workloads onto servers. VMworld is an annual event that features that company’s latest products.
One of the issues that analyst said at the time was that it could mean that customers might not like having the “one-stop-shop” that Dell was offering. After putting all your eggs in one basket is never sensible, unless you like omelettes.
Dell is saying the opposite and customers prefer the simplicity of dealing with a monolith for everything.
Education hardware spend grew in 2012.
According to Futuresource Consulting, the sector saw an increase of 23 percent to a total spend of $11.6 Billion, from 2011.
The analyst company said this was a strong result compared to other markets and considering the pressure on education budgets across the world.
Looking to the future, the company predicted that the total value is expected to reach $21 billion by 2017, a CAGR of 12 percent from 2012 to 2017.
It also claimed that as well as raking in the cash the education sector was slowly moving digital, potentially opening up a wide range of revenue stream opportunities in hardware, software, content, infrastructure and services for suppliers.
This increase of spend in education technology has been driven by the uplift in the mobile PC market, which at $6.8 billion, now accounts for 59 percent of the total spend, up from 51 percent.
The explosion of tablets and ‘one to one learning programmes’ primarily driven by the iPad and now the iPad mini, are also expected to accelerate growth in 2013.
And traditional education tools are also helping fuel revenue. In 2012, a million interactive board displays were sold, marking an annual increase of 15 percent the company said.
The interactive projector market is also expected to have some of the greatest growth in the classroom technology market, with a 2012 – 2017 volume CAGR of 19 percent.