Dell Technologies witnessed mixed results in its infrastructure solutions group (ISG) in the third quarter owing to the difficulties in traditional external storage and softness in certain areas of servers.
But, the company bets on its Enterprise Hybrid Cloud solutions, demand for which grew triple digits during the quarter, reaching a run-rate of almost $0.5 billion.
According to research firm TBR, this statement offers an early proof point around Dell Technologies’ ability to deliver performance with its cloud-enabling hardware and infrastructure pieces.
Most of Dell Technologies’ hybrid cloud assets sit within ISG, though Boomi, Dell’s integration (iPaaS) solution is now a part of the Client Solutions Group.
With Boomi acting as an integration layer for EMC’s Native Hybrid Cloud Architecture, Dell Technologies can now help customers connect on-premises, public and private cloud assets.
This will allow Dell Technologies to provide an integration tool that enables connection of on-premises and cloud assets across cloud environments of customers’ choosing for easier adoption of multicloud solutions.
Dell Technology’s future success in cloud
To expand its hybrid cloud capabilities, TBR says Dell Technologies will draw on formerly federated EMC assets —now referred to as “strategically aligned businesses”— including VMware and Pivotal.
In the third quarter financial report, Dell Technologies highlighted VMware partnerships with IBM and AWS, and expanded Pivotal Cloud Foundry partnerships with Google Cloud Platform and Microsoft Azure.
All these measures suggest that Dell Technologies will focus on building a wide array of cloud alliances throughout its family of companies to cement its position as a provider of hybrid infrastructure solutions.
In addition, the strategically aligned businesses will help fill gaps in Dell Technologies’ go-to-market strategy in the wake of the finalized sale of Dell Software Group in October, with VMware, Pivotal and Boomi providing Dell Technologies access to cloud-enabling software assets.
TBR believes a close relationship with the strategically aligned businesses can also help bolster Dell Technologies’ value proposition around open source, with Pivotal known for its distribution of the open-source PaaS offering, Cloud Foundry.
Though Dell Technologies has merged two closely aligned businesses in EMC and Dell — with both playing heavily in the hardware and infrastructure spaces — the companies’ combined ecosystem will give Dell Technologies the chance to further rationalize and focus its portfolio while still having access to the assets necessary to deliver sophisticated hybrid IT and hybrid cloud solutions.
Additionally, the company can address a wide array of clients, from SMBs to large enterprises.
Tom Sweet, Dell Technology Chief Financial Officer, says the company must execute three strategic initiatives to achieve its enterprise goals.
First, extend the company’s market-leading position in Client Solutions and IT infrastructure for traditional workloads, both on and off-premises.
Second, grow strong position in IT infrastructure for cloud native workloads, both on and off-premise
And third, innovate with winning technology that stands and unites on and off-premise applications and infrastructure.
The company understands that the deployment of infrastructure in multi-cloud environments will continue to move towards all-flash and converged solutions, which brings servers and storage together.
With this industry dynamic as its backdrop, Dell Technologies is confident to help customers in their digital transformation.
