“We divested Dell services. We divested [VMware’s] vCloud Air, and really began to clean up the portfolio to drive forward Michael [Dell’s] vision that the world is going to need an essential infrastructure company. It might not be the sexiest play in IT, but absolutely at the end of the day, all this stuff has got to run on something. We’re proud to be that something.”
Original source: Dell Technologies’ “essential infrastructure” strategy
On March 27, 2016, Dell entered into a definitive agreement with NTT Data International L.L.C. to sell substantially all of Dell Services for cash consideration of approximately $3.0 billion. On June 19, 2016, Dell entered into a definitive agreement with Francisco Partners and Elliot Management Corporation to sell substantially all of Dell Software Group for cash consideration of approximately $2.4 billion.
“Dell Cloud Manager v11 features new state-of-the-art distributed blueprint support based on the TOSCA standard, simplifying portability and management of cloud applications and services throughout their lifecycle. New support for Windows Azure Pack and enhanced support for Microsoft Azure give Microsoft customers the first independent unified solution to centrally manage their combined private and public cloud environments. New automated scaling and recovery capabilities also provide added efficiency, helping to better satisfy service level requirements.”
The company doesn’t have its own public cloud infrastructure, but it’s happy to help set up a private cloud or link a customer to one of the major public clouds, such as those offered by Amazon, Google or Microsoft, and run it all for them. And if they want to run it themselves? Dell can build the software needed to manage all of those clouds in one place. Security concerns means that businesses will always need to maintain some level of in-house IT architecture, which needs to be maintained. Dell wants a piece of that action, even if the overall pie is shrinking.
And it looks like they’ve been growing account sizes (a possible indication that they’re selling more new stuff, not the same old stuff):
The company recently [back in Sep 2014] said that the aggressive strategy was paying off, with new lines of business within existing Dell accounts up 175% in North America for the quarter ending April 30, compared with the same quarter last year.
“There’s been an interesting transition happening in the market where things used to be a web economy, and it’s in a transition to becoming an application economy. I would say that today we’re seeing an API economy. Customers’ focus isn’t necessarily on developing applications. Many do, but it’s really about how quickly can you tile together a service through the integration of multiple APIs from services that already exist?”