Q: I know that Dell is an active participant in the OpenStack community. Why has Dell chosen to focus on open solutions for the cloud, what’s the advantage there?
RS: We’re focusing on both, we’re definitely committed to open solutions. We’re also still driving our solutions with VMware. We announced last summer our public cloud offering with VMware, Vcloud. [Open solutions] enables us to be much more flexible in terms of solutions, in terms of managing the cloud.
And also in allowing us to tap into the cloud ecosystem even better. We understand, again, it’s a multi-sourced environment, and if we’re looking to deliver on what we see as the two biggest benefits and reasons for the cloud – cost is a big component of that, and efficiency – the next thing is enabling new businesses, right? Allowing new businesses, start-ups, to innovate, without being hindered with capacity and costs, etc.
Now there’s also the medium-sized business and enterprise level – obviously there’s significant cost efficiency there. The business opportunity for them is identifying new revenue. If there were services they had planned, or were in the works, but were hampered because of scalability requirements or elasticity for compute, that now is available via the cloud, and it makes the business viable. So it’s new revenue opportunity.
Q: Dell has spent almost $2 billion in the last year or so acquiring cloud companies. What’s the focus behind this strategy?
RS: I’d like to be selfish [laughs] because I’m responsible for Dell and cloud. But there are, at least, the five or six acquisitions where it enhances our cloud portfolio, and our ability to create IP and deliver cloud end to end.
And I’m going to go back to delivering those four attributes: service integration is hard. To get true integration of these different environments and deliver interoperability, we need the IP, we need the management solutions to be able to deliver that, securing the cloud, protecting information with SecureWorks. And then the other aspect of integration with Boomi.
Add to that, other acquisitions we’ve made, like, Clerity, which enhances our ability to do application modernization, which underpins why customers would want to move to the cloud. SonicWall for network security and again I’m going to data protection, it enhances what we’re able to do with SecureWorks.
And also understand what we’re doing with these companies, and I’ll use SecureWorks as an example. Like our Vcloud offering, we are providing options to that offering. Now it is a fully managed service, right? A fully managed public cloud service that we offer customers today. But we add enhancements to that. Customers can elect to increase the security aspect of the managed service. So think of your car, what other upgrades can I get with this service?
Q: Anything you’d like to add?
RS: Going back to the legacy that Dell has built, we have the credibility and the capability to deliver these services, not just within each of their areas, but actually deliver them in an integrated fashion for our customers. So it is an end to end solution for our customers for the cloud.
I think, if anything ,we’re very sensitive to the fact that, yup, you can gain efficiencies by going to the public cloud solution, and we have that. But also thinking of, what’s next? Where can we take our customers, how can we transform their environment so they get the most advantage from cloud? That is really looking at all four [of the Dell points] and delivering that kind of value to our customers today.