Emerging Device Businesses

By Chris Preimesberger  |  Posted 2011-09-19 Print this article Print


Dell is also in the emerging device businesses, with its Windows- and Android-based Streak tablets and Venue smartphones-another business HP is dropping. The holes in those markets formerly occupied by HP are creating a great opportunity for Dell to step right in and improve its sales in North America.

Dell sells most of its portable connected devices in the Far East and has quite a way to go to catch up to Apple and Samsung, the two world market leaders.

Those prospects-together with new business opening up in the cloud services and infrastructure markets-indicate that things are looking up for Dell.

"Last quarter, we had $1 billion in new [service contract] signings, which is a record for the company," Dell said, "and we have $15 billion or $16 billion in deferred services revenue. If you compare that to about three years ago, the number was about $5.5 billion. We've almost tripled the forward calendar of services activity. It's a substantial business."

New Moves Into Cloud Services Dell made major cloud-related announcements at both VMworld 2011 in Las Vegas and Dreamforce in San Francisco. On Aug. 29 at VMworld, the company revealed that it will launch its first public cloud offering later this year as part of its partnership with VMware.

Dell will host VMware's new vCloud public cloud systems in Dell data centers: One is already online in Plano, Texas, and the other is under construction in the Pacific Northwest. More data centers are being planned.

"This partnership also will build private clouds for customers," said Mark Bilger, vice president and CTO of Dell Services. "By extension between the two, Dell Services will be providing hyper-cloud solutions between the private cloud data centers and Dell's public cloud offering."

So Dell and VMware are connecting a lot of dots: customers to the cloud, data centers to data centers, and data centers to outside public cloud services. There is no question that this is a full cloud-service offering with many options for customers to consider.

This will be a multitenant environment for running virtual systems. It will provide access to virtual CPUs, memory, storage networks, IP addresses, firewalls and catalog capabilities.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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