The acquisition of EMC by Dell has is generating an immense amount of hype and prose, much of it looking forward at how the merged entity will try and compete in cloud, integrate and rationalize its new product line, and how Dell will pay for it (see Forrester report “Quick Take: Dell Buys EMC, Creating a New Legacy Vendor”). Interestingly not a lot has been written about the changes in the fundamental competitive faceoff between Dell and HP, both newly transformed by divestiture and by acquisition.
Yesterday the competition was straightforward and relatively easy to characterize. HP is the dominant enterprise server vendor, Dell a strong challenger, both with PCs and both with some storage IP that was good but in no sense dominant. Both have competent data center practices and embryonic cloud strategies which were still works in process. Post transformation we have a totally different picture with two very transformed companies:
A slimmer HP. HP is smaller (although $50B is not in any sense a small company), and bereft of its historical profit engine, the margins on its printer supplies. Free to focus on its core mandate of enterprise systems, software and services, HP Enterprise is positioning itself as a giant startup, focused and agile. Color me slightly skeptical but willing to believe that it can’t be any less agile than its precursor at twice the size. Certainly along with the margin contribution they lose the option to fight about budget allocations between enterprise and print/PC priorities.
My colleagues Sophia Vargas, Michael Yamnitsky, and I have just published a new Quick Take report, "HP Announces Innovative Tools That Will Bridge Physical And Digital Worlds." Sophia and Michael have written about 3D printing for CIOs previously, and all three of us are interested in how computing and printing technologies can inform the BT Agenda of technology managers.
Fresh off of the announcement that HP will split into two publicly owned companies, one of those new entities -- HP Inc, the personal computing and printing business -- announced its vision for the future with two new products that help users cross the divide between physical and digital. The Multi-Jet Fusion 3D printer represents HP's long-awaited entry into 3D printing, with disruptively improved speed and quality compared to existing market entries. The sprout desktop PC combines a 3D scanner with a touchscreen monitor, touchscreen display mat, and specialized software that allows users to scan real objects, then manipulate them easily in digital format.
In both cases, a video demonstration helps you to really grok what the product is about.
CNET posted a video tour of the Multi-Jet Fusion 3D printer on Youtube:
With Henry Dewing, Henning Dransfeld, Katyayan Gupta, Brownlee Thomas, and Michele Pelino
Vodafone hosted its annual global analyst event in London recently, and it was a good event. Vodafone’s CEO Vittorio Colao kicked it off with a passionate endorsement of Vodafone’s enterprise ambitions. But will Vodafone’s market position as a leading mobile telco give it a tangible advantage in the broader enterprise global telecoms marketplace? We believe there is a good chance it will because:
Vodafone’s integrated pitch is credible. Vodafone comes up in nearly every conversation with Forrester enterprise clients that want to consolidate vendors for multicountry or “global” mobility services. Increasingly, our clients also are asking about Vodafone’s wired services. And those based in the UK and Germany are the most interested in learning about what’s available and what’s coming with respect to fixed-mobile bundling. Vodafone made a big play on fixed-mobile integration, most notably with the acquisitions of Cable & Wireless and Kabel Deutschland. Its network now covers 140 countries, 28 of which support MPLS networks for mobile backhaul. Vodafone also has big plans for refreshing and expanding its international IP backbone network to more than 60 countries.
I recently spent an hour with Hewlett-Packard executive Stephen DeWitt, a longtime leader at the company who is currently leading up HP’s enterprise marketing efforts. I wanted to learn more about the value proposition of products and services HP is selling to infrastructure & operations professionals and to understand HP’s vision of the future for enterprise customers.
“It’s easy to think of HP as a ‘PC and printing’ company – and we’re obviously a huge player in those traditional product areas – but we have a broader vision for enterprises and for workers…all built around the new style of IT,” Stephen told me. “Our new enterprise campaign, for example, is going to introduce people to the degree of breakthrough innovation we are providing customers today, and how co-innovating with HP can empower your business in the dramatically changing world ahead.”
Q: What’s HP’s overall vision for enterprise solutions? How do you make that vision tangible and concrete for your customers?
HP is a portfolio company, from core to periphery, from cloud to the device. We work very closely with our customers to provide end to end solutions rather than just ad hoc or best of breed products, and we focus on solving for business outcomes and co-innovating with our customers.
Today, Samsung places much greater strategic emphasis on its enterprise business, which is now a “top three priority” globally for the company. Symbolizing this new commitment to enterprise customers, on June 11th Samsung openeda new Executive Briefing Center (EBC) in its Ridgefield Park, NJ office. The EBC offers enterprise customers and Samsung’s many partners an opportunity to experience Samsung’s vertically-optimized enterprise offerings in context.
I attended the opening, which enjoyed executive-level support from the President and CEO of Samsung Electronics North America Yangkyu (Y.K) Kim, President of Samsung Electronics America Tim Baxter, and Senior Vice President, Samsung Enterprise Business Tod Pike. I also spent an hour learning more about the Samsung value proposition for enterprise customers from Tod, including the excerpted Q&A below.
Samsung’s Enterprise Business Division focuses on a vertical strategy that includes Education, Healthcare, Retail, Financial Services, and Hospitality... and which isn’t just about devices, though their product offerings in hospitality TVs, notebook and tablet PCs, virtualization, wireless printers, and digital signage play a prominent role. Samsung also brings together enterprise-savvy partners like Crestron and Nuance Communications – along with numerous systems integrators and other channel partners – to deliver software, content, and services along with those devices.
In recent research, I have laid out some similarities and differences between tablets and laptops. But the tablet market is growing ever more fragmented, yielding subtleties that aren’t always captured with a simple “PC vs. tablet” dichotomy. As Infrastructure & Operations (I&O) professionals try to determine the composition of their hardware portfolios, the product offerings themselves are more protean. Just describing the “tablet” space is much harder than it used to be. Today, we’re looking at multiple OSes (iOS, Android, Windows, Blackberry, forked Android), form factors (eReader, tablet, hybrid, convertible, touchscreen laptop), and screen sizes (from 5” phabletsand to giant 27” furniture tablets) – not to mention a variety of brands, price points, and applications. If, as rumored, Microsoft were to enter the 7” to 8” space – competing with Google Nexus, Apple iPad Mini, and Kindle Fire HD – we would see even more permutations. Enterprise-specific – some vertically specific – devices are proliferating alongside increased BYO choices for workers.
“Hello, I’m J. P. Gownder, and I serve Infrastructure and Operations professionals!” That’s my new greeting to Forrester’s clients. (I borrowed – aka “stole” – this opening line from my excellent colleague, Laura Ramos, who recently rejoined the Forrester analyst ranks herself).
After eight years in a variety of roles at Forrester, I’ve joined the Infrastructure and Operations (I&O) team as a Vice President and Principal Analyst. I’ll be collaborating with analyst colleagues (please see below) on I&O’s forthcoming Workforce Enablement Playbook. I&O pros face the constant challenge of empowering their companies’ workers with devices and services to make them successful in their jobs… as well as navigating the growing challenge of employees who choose to bring their own technology to work instead.
More specifically, I’ll be researching at least five issues pertinent to I&O pros:
During its European Analyst Summit in London, Huawei provided details regarding two crucial elements of its expanding market positioning: It outlined its intention to launch mobile devices and enterprise solutions. Although Huawei has been engaged in these activities in China for some time, it is a new and exciting step for its European strategy. Competitors should not underestimate Huawei’s ability to take business away from them in these areas.
Huawei’s mobile device range for Europe is small, but very effective. The company targets the low-end smartphone segment with a €100 device (Blaze), the mid-market (Vision), and high-end (Honour), in addition to a tablet (Media Pad). The marketing strategy is to position these devices as affordable, easy-to-use, and reliable (i.e., the “Volkswagen of the mobile devices”). All devices are touch, have fast processors, crisp screens, and retail at about €100 below competitors’ offerings. Timing is good for Huawei, given the relative weakness of the competitive landscape, especially RIM and Sony Ericsson. Initial customer feedback on sites such as Amazon.com reflects positive customer experiences.
The fact that Huawei has no consumer brand in many European countries should not be a great obstacle. Rather, Huawei could use this factor in order to involve its emerging customer base to build a brand using social networking and viral marketing. Traditional big-board advertising campaigns would be pointless: Nokia will dominate the traditional channels with its Lumia campaign in the coming months. The main channels for Huawei will be MVNOs like Fonic, consumer electronics outlets like Phone4U, as well as selected larger operators.
Historically, the positioning of Dell versus its two major competitors for high-value enterprise business, particularly where it involved complex services and the ability to deliver deeply integrated infrastructure and management stacks, has been as sort of an also ran. Competitors looked at Dell as a price spoiler and a channel for standard storage and networking offerings from its partners, not as a potential threat to the high-ground of being able to deliver complex integrated infrastructure solutions.
This comforting image of Dell as being a glorified box pusher appears to be coming to an end. When my colleague Andrew Reichman recently wrote about Dell’s attempted acquisition of 3Par, it made me take another look at Dell’s recent pattern of investments and the series of announcements they have made around delivering integrated infrastructure with a message and solution offering that looks like it is aimed squarely at HP and IBM's Virtual Fabric.