I attended Dell’s third annual global summit last week at the company’s headquarters in Austin, Texas to get an update on the company’s progress since it went private. The event demonstrated Michael Dell’s passion to transform a hardware company into an end-to-end solution provider. Dell highlighted five key investment priorities in 2014, including expanding its sales coverage and enhancing its relationship with partners; it also wants to increase its investments in emerging markets, with China atop the list.
The success of these investment plans hinges upon highly efficient execution across the organization. We’ve already seen one example that Dell has increased its executive capability since it went private: Its partnership with open source software provider Eucalyptus to put preinstalled and pretested Eucalyptus software on Dell VRTX servers. This project was ready just three weeks after CEOs of Dell and Eucalyptus decided to go forward with the partnership.
On one hand, the improved execution capability and more flexible service delivery model will strengthen the competitive position of Dell’s services. On the other hand, these changes will also provide benefits to end user organizations, including:
Today's move by Citrix to put its CloudStack IaaS solution into the Apache Foundation says more about the state of the cloud market than it does about OpenStack. As our Fall 2011 Forrsights Hardware Survey shows, about 36% of enterprise IT leaders are prioritizing and planning to invest in IaaS this year. That means they need solutions today and thus service providers and cloud software vendors need answers they can take to market now. OpenStack, while progressing well, simply isn't at this point yet.
Second, Citrix needed to clarify the position of its current open source–based solution. Ever since Citrix joined OpenStack, its core technology has been in somewhat of a limbo state. The code in cloudstack.org overlaps with a lot of the OpenStack code base, and Citrix's official stance had been that when OpenStack was ready, it would incorporate it. This made it hard for a service provider or enterprise to bet on CloudStack today, under fear that they would have to migrate to OpenStack over time. That might still happen, as Citrix has kept the pledge to incorporate OpenStack software if and when the time is right but they are clearly betting their fortunes on cloudstack.org's success.
There are myriad other benefits that come from this move. Two of the biggest are:
Amazon Web Services (AWS) is great, but many of our enterprise clients want those cloud services and values delivered on premise, behind their firewall, which may feel more comfortable for protecting their intellectual property (even if it isn't). AWS isn't very interested in providing an on-premise version of its solution (and I don't blame them). Today's partnership announcement with Eucalyptus Systems doesn't address this customer demand but does give some degree of assurance that your private cloud can be AWS compatible.
This partnership is a key value for organizations who have already seen significant adoption of AWS by their developers, as those empowered employees have established programmatic best practices for using these cloud services — procedures that call AWS' APIs directly. Getting them to switch to your private cloud (or use both) would mean a significant change for them. And winning over your developers to use your cloud is key to a successful private cloud strategy. It also could double your work to design and deploy cloud management solutions that span the two environments.