Six Surprises That May Change Your View of Dell

Dellworld 2013Dell’s journey to transform itself from a hardware company to a solutions vendor has been ongoing for a couple of years. To achieve that, the company has been acquiring, building and blending hardware, software, services, cloud and open standards to broaden its technology footprint. But, much of Dell’s progress has been buried in the drama of the fight to take the company private.

As the first major event since the company’s tumultuous–but ultimately successful–struggle to go private, Dell World 2013 promised to be somewhat of a bellwether. Would Dell, newly freed from Wall Street’s constraints, reframe itself as innovative, end-to-end solutions provider?

Of course, one event won’t change things overnight. But Dell is off to a good start. At Dell World, the company unleashed, unveiled and underscored a comprehensive, innovative vision for its future. If you still view Dell as a stodgy hardware provider, here are six things it is doing that may surprise you–and prompt you to look at the company in a new light.  Consider that Dell is:

  1. Becoming an über-cloud provider: Except for its role as an arms supplier, the cloud has been a murky space for Dell. But at Dell World, it announced that Microsoft, CenturyLink, Dropbox and Google are on board with its expanded Dell Cloud Partner Program which is designed to give customers more choice and flexibility in the cloud, and to provide end-to-end support for offerings from multiple cloud vendors. For instance, customers gain the ability to manage single or multiple public, private and hybrid clouds through one pane of glass via Dell Cloud Manager (formerly Enstratius).
  2. Enabling customers to build open, private-cloud solutions based on Red Hat Enterprise Linux OpenStack PlatformDell is the first OEM vendor to collaborate with Red Hat to provide businesses with co-engineered solutions and dedicated support and services for OpenStack. The goal is give businesses more confidence in using OpenStack as an alternative to proprietary IaaS and PaaS (infrastructure and platform as-a-service) alternatives.
  3. Consolidating channel and direct sales teams into one organization: To support its transition from hardware maker to solutions provider, Dell announced that it is combining direct sales and partner sales into a single organization–and providing a 20% “compensation accelerator” to motivate direct sales to work with channel partners on seven solution areas. Dell also announced expanded profit and coverage opportunities for partners, including turning over 200,000 named accounts to the channel.
  4. Innovating in industries: I knew that Dell is a top technology provider in the healthcare industry, much of this a result of its acquisition of Perot Systems. But didn’t know that it is the top IT provider in healthcare, and is helping pioneer change in this quickly evolving industry. For instance, Dell Services helped launched a state exchange for the Massachusetts Health Connector, and manages and secures Dell Cloud Clinical Archive, one of the largest (with nearly 7 billion images) cloud-based, vendor-neutral medical image archives in the world. At Dell World, te company announced a new cloud-based hospital administration system (HIS), which will launch first in India. Dell is also increasing its focus on other industries, including finance, where it has launched digital transformation frameworks and payment transformation services to help banks reduce costs, retain customers and improve compliance. In the insurance area, Dell has won more than 10 multi-million dollar contracts in the last eighteen months with its Third Party Administration platform.
  5. Going mobile. Sure, you know that Dell has mobile devices–from the new convertible (laptop to tablet) XPS 11 and Venue 11 Pro tablet to the newly released Dell Chromebook 11 (designed for the education market). But, building on prior solutions , Dell announced Enterprise Mobility Management, a unified mobile management solution to managed devices, apps, and content, and Secure Remote Access Gateway to protect endpoints, which will be available through the channel in 2014. I also learned that Dell Services offers custom mobile app development.
  6. Extending its investments in innovation: In his keynote, Michael Dell unveiled two new programs designed to foster innovation. First, Dell has created a research division to pursue organic innovation with a five to ten-year focus. Second, Dell has upped its investment in Dell Ventures with a $300 million dollar Strategic Innovation Venture Fund, a five-fold increase over its initial $60M investment. The Venture Fund invests in early to growth stage companies in the technology areas that Dell is focusing on–storage, cloud computing, big data, data center, security and mobility. Dell’s model is to co-invest with venture capitalists, serve as a board advisor, and provide product and go-to-market resources to the companies it invests in. Dell also reaffirmed its pledge to provide a broad range of entrepreneurs with technology, financing, networking and knowledge via the Dell Center for Entrepreneurs. It highlighted this focus with Dell Pitch Slam which attracted 6-8 late stage startups from several regional events to Dell World, where they pitched their ideas to Michael Dell and other judges. Check out the winners–Guavus, Neverware, and Fantoo.

Summary and Perspective

M DellMaybe as important as the collective weight of all the announcements offered at Dell World 2013, Michael Dell deserves high praise for not only retaining so many employees, but for inspiring staff to stay the course through the trials and tribulations of the privatization process.

As Dell stated in his keynote, “I feel I’m part of the world’s biggest start-up.” His attitude seemed to be contagious among employees, creating a sense of excitement that I hadn’t seen at the past two Dell World events. This renewed commitment and energy from within is the essential first step to a successful transformation, and getting customers and the broader market to view Dell in a new light as well.

Disclaimer: I attended Dell World as an invited media guest.

SMB Group Top 10 SMB Technology Trends For 2014

Here are SMB Group’s Top 10 SMB Technology Trends for 2014! A more detailed description of each follows below.

1.     Progressive SMBs Use Technology as a Game Changer
2.     Cloud Adoption Accelerates, But SMBs Steer Clear of Dark Clouds
3.     Mobile Management Becomes a Priority as SMB Mobile App Use Soars
4.     Social Media Marketing Stalls as SMBs Re-focus Marketing Practices
5.     SMBs View Payment Systems in a New Light
6.     SMBs Prepare for the Insight Economy
7.     SMBs Integrate to Gain Higher Solution Value
8.     The Affordable Care Act Puts Workforce Management in the SMB Spotlight
9.     It’s Easy for SMBs to Go Green and Save Green
10.  Make Way for an SMB Influencer Shake-Up

2014 Top 10 SMB Technology Trends in Detail

  1. Progressive SMBs Use Technology as a Game Changer. Technology continues to fuel changes in what, where, and how SMB (small and medium businesses, with 1 to 999 employees) work gets done. Back in 2011, SMB Group identified the “Progressive” SMB segment. Progressive SMBs invest more in technology-based solutions, view technology as a business enabler, and are much more likely to expect revenue growth than other SMBs. This gap continues to widen as we enter 2014, and is further fueled by generational shifts–including the rise of millennials in the workforce and older exiles from the corporate world. Progressive SMBs are blending technology and business savvy to reshape business models, carve out new market niches and invent entirely new businesses. Their adoption of cloud, mobile, social and analytics will soar as they strive for both growth and agility. They will also increasingly turn to technology-fueled services—from Elance and oDesk for staffing, to shared office space and IT infrastructure services—in pursuit of these goals. As they forge ahead, they will not only continue to outpace peers, but reshape what it means to be an SMB.
  2. Cloud Adoption Accelerates, But SMBs Steer Clear of Dark Clouds. SMBs have bought into the cloud promise: a faster, easier, cheaper and less risky route to get the IT solutions they need to create and run their businesses. SMB Group research shows SMB use of cloud business and infrastructure applications poised to grow to from 33% to 44% over the coming year. However, some cloud vendors—threatened by Wall Street and high churn rates—have backtracked on their original faster, easier, cheaper cloud pledge. They have replaced monthly subscription pricing with annual contracts, tacked on added fees for all but the most basic support, and created pricing models that are almost as confusing as those of the traditional software behemoths they once berated. As SMBs push further into the cloud, they will favor vendors that stay true to the original cloud promise, and steer clear of dark clouds.
  3. Mobile Management Becomes a Priority as SMB Mobile App Use Soars. SMBs have been adopting mobile solutions at a fast and furious pace. SMB Group research indicates 67% of SMBs now view mobile solutions and services as “critical” to their businesses. 83% have already deployed mobile apps to help improve employee productivity; 55% are using mobile apps for specific business functions, such as CRM or order entry. 49% of SMBs are building mobile-friendly websites, and/or deploying mobile apps to engage and transact with customers. However, mobile management has failed to keep pace with this explosion, and with SMBs’ increasing business reliance on mobile solutions. Concerns about security, manageability, provisioning and cost will make mobile management a top priority for more SMBs. They will be looking for easy-to-deploy, cost-effective mobile device and application management platforms and solutions to reduce management headaches and get more value from their mobile investments.
  4.  Social Media Marketing Stalls as SMBs Re-focus Marketing Practices.  Many SMBs now “get” that they need a social media presence. SMB Group research reveals that more than half of small businesses and more than two-thirds of medium businesses use social media for marketing purposes. Some have invested tremendous amounts of energy to create content to feed the voracious social media beast. But the ever-increasing pressure to create fresh content, keep up with changes in users’ social network preferences, and uncertainty about the return on social investments is taking its toll. In 2014, SMBs will focus more on what networks and content really click for their target audiences, and put more time into figuring out how to convert social connections into customers. Some will integrate social more tightly with sales, marketing and content management applications, and use analytics to develop more actionable social metrics. Marketing innovators will explore new opportunities, such as online mobile advertising powered by geolocation. Others will redirect some of their efforts back to marketing basics–including surveys, competitive analysis, email marketing and attending more conferences and events.
  5. SMBs View Payment Systems in a New Light. SMB Group research shows that although checks and credit cards are still the top forms of payment SMBs accept, there’s no question that new payment methods are growing in use and importance. 27% of small businesses and 43% of medium businesses already equip employees with mobile payment processing solutions, and about one-quarter of SMBs intend to add this capability over the coming year. Meanwhile, mobile wallets and gift cards, PayPal and even Dwolla—a payment network that allows any business or person to send, request and accept money for very low fees—will continue to provide additional payment options for consumers. More SMBs will recognize that having the capability to accept and process a broader range of payment methods can help them attract more customers, gain new business, and even enter new markets. SMBs will also seek ways to cut time and errors out of payment processing with payment solutions that integrate with accounting and ERP, such as those offered by Intuit and Sage.
  6. SMBs Prepare for the Insight Economy.  It’s been hard for many SMBs to relate to the “big data” story that most vendors have been pitching. SMB Group research reveals that only about 18% of small, and about 57% of medium businesses utilize business intelligence and analytics solutions. However, SMBs understand the value of getting the information they need, when they need it—especially as they try to compete with new, nimble born-on-the-Web startups that view data as the new business capital. In 2014, SMB-focused vendors will retool the big data story for the little guy, focusing less on zettabytes, speeds and feeds, and more on how their solutions enable and empower better insights and decision-making. Business solutions vendors will embed better and more accessible analytics and reporting tools within their solutions. Cloud-based, visualization and scenario-driven business intelligence and analytics solutions will also help SMBs take a more data-driven approach to running their businesses.
  7. SMBs Integrate to Gain Higher Solution Value. While the cloud has made it easy for businesses to add a lot of new applications, integration has often been an afterthought. As a result, many SMBs are struggling to make sense of disconnected information silos, and IT is under pressure to integrate cloud-to-on-premises solutions, as well as cloud-to-cloud solutions. In 2013, integration moved up from the #4 to the #1 technology challenge for medium businesses. In 2014, we expect that integration will be a higher priority even among small businesses. After all, it doesn’t take too many disconnected applications to feel the pain of productivity drains, errors, and a lack of solid data to support decision-making. Fortunately, technology vendors of all stripes are emphasizing the importance of a unified, reliable data store as the foundation for solid analytics and reporting. Business solution vendors are increasingly offering SMBs pre-integrated suites, opening up their application programming interfaces (APIs), and creating marketplaces to make it easy to find integrated partner apps. This makes it easier for SMBs to start small, with just one or two applications, and then snap in added functionality as needed. Finally, vendors that specialize in integration solutions, such as Informatica, Scribe and Dell Boomi (just to name a few), are making their solutions more accessible to SMBs. Integration still isn’t sexy, but the improved productivity, time savings, error reduction and decision-making benefits that it enables are.
  8. The Affordable Care Act Puts Workforce Management in the SMB Spotlight. Revenue growth, attracting new customers and increasing profitability are perennial goals for SMBs.  To help achieve these goals, they have been steadily moving ahead to automate and integrate sales, marketing and other customer-facing solutions. Although improving employee productivity has also been a top goal, SMB adoption of automated, integrated workforce management solutions has lagged behind other areas. Many SMBs continue to limp along with a patchwork of disconnected solutions and manual tracking to manage components such as time and attendance, payroll, scheduling, HR and benefits.  But with the Affordable Care Act set to take effect on January 1, 2015 for organizations with more than 50 full-time equivalent (FTE) employees, that situation is about to change. Worried about uncertainty, costs and regulatory risks, SMBs will look for better solutions to calculate employee eligibility and benefits, and to develop proactive strategies to manage ACA compliance and costs. This will drive a significant uptick of interest in, and adoption of automated, integrated workforce management solutions.
  9. It’s Easy for SMBs to Go Green and Save Green. The push for greener IT solutions isn’t new, but in 2014, we’re moving into a perfect green storm. Due to a rash of hurricanes, tornadoes and extreme weather, the sustainability of Mother Earth is taking center stage. According to a recent Harris Poll, over 74% of American adults believe in the global warming theory, and over 73% of U.S. citizens approve of the Kyoto agreement requiring countries to limit carbon monoxide and greenhouse gas emissions. IT vendors are prepared to capitalize on this opportunity with new, energy-saving products. From Dell’s Dell PowerEdge VRTX applications and storage server, which runs on standard 100V-240V AC power and doesn’t require any specialized cooling, to IBM’s patent for a “green” button that helps cloud providers “greenify” their businesses and lets customers choose whether or not to tap clean energy to run offsite servers, it’s easier than ever for SMBs to be green and save green.
  10. Make Way for an SMB Influencer Shake-Up. SMB Group research shows that in-house IT still plays a key role in all phases of the technology solution decision-making process. But now, enabled by the cloud and the swipe of a credit card, business decision-makers are much more involved: in small businesses, 69% of owners/presidents help evaluate potential solutions, and 81% help make the final decision. In medium businesses, departmental and line-of-business executives are the most likely personnel to identify the need for new solutions. This is changing the influencer landscape. Business decision-makers aren’t as likely to turn to traditional technology guidance sources as IT decision-makers. And many of us—especially millennials—are growing skeptical of traditional media sources that increasingly push paid “native content” in the guise of news. So who will the new influencers be? Accountants and other professional advisors (for line-of-business or industry) that the SMBs have an established relationship with will become more powerful influencers. Digital word-of-mouth, references, trade associations and non-technical groups and organizations will play an increasingly important role in shaping technology purchase decisions among both business and IT professionals. Finally, technology vendors that provide unbiased education—and can clearly demonstrate how business benefits from their solutions—will have a decided advantage over those that don’t.

About SMB GROUP

SMB Group focuses exclusively on researching and analyzing the highly fragmented “SMB market”—which is comprised of many smaller, more discrete markets. Within the SMB market, SMB Group areas of focus include: Emerging Technologies, Cloud Computing, Managed Services, Business and Marketing Applications, Collaboration and Social Media Solutions, IT Infrastructure Management and Services and Green IT.

Carving A Green IT Pathway for SMBs

electric_circuitIn today’s always-on world, we are all using more technology. Chances are, you rely on several devices – smartphones, notebooks, tablets, and PCs. You’re also probably connecting to more servers to access more apps, and using more storage to house all the information you need to access.

Our appetite for technology is likely to continue unabated because, simply put, we like it. It helps us runs our businesses better, work more productively, stay in touch with friends, and get through holiday shopping more quickly. However, our increasing reliance on technology has environmental consequences. From devices to data centers, technological products require metals, minerals, wood products and chemicals, and energy.

Unfortunately, we are not using these resources in a sustainable way. A case in point is our handling of e-waste: just 27% of the e-waste generated in the U.S. in 2010 was recycled. Consider also the fact that, most servers run at utilization rates of 25% or less, but require just as much energy as if it they were being used at 100% capacity. This means that when a server is only performing about a quarter of the work that it ‘s capable of, it still uses the same amount of power as if it were operating at full tilt.

As I discussed in the first post of this two-part series, Dell’s Green IT Growth Path: Paving the Way for SMBs, both technology vendors and consumers have an important role to play in curbing the negative environmental impact of technology. In this post, I discuss how Dell is raising the bar yet again, and how SMBs can follow suit.

Dell Raises the Green IT Bar

delllogoDell has been recognized as a leader in environmental sustainability for many years. Last month, it significantly upped its commitment when it announced its 2020 Legacy of Good Plan. Among the 21 corporate responsibility goals outlined in the plan, Dell has set 12 goals specific to environmental sustainability. Building on existing initiatives, these 12 environmental goals focus on three areas: reducing the environmental impact of company operations, driving social and environmental responsibility in the industry and supply chain, and promoting technology’s role in addressing environmental challenges.

Specifically, Dell’s ambitious goals include plans to:

  • Reduce the energy intensity of its product portfolio by 80%
  • Reduce greenhouse gas emissions from facility and logistics operations by 50%
  • Reduce Dell’s use of fresh water in water-stressed regions by 20%
  • Ensure 90% of waste generated in Dell-operated buildings is diverted from landfills
  • Develop and maintain sustainability initiatives in 100% of Dell-operated buildings
  • Ensure 100% of product packaging is sourced from sustainable materials
  • Reduce the energy intensity of its product portfolio by 80%
  • Use 50 million pounds of recycled-content plastic and other sustainable materials in its products
  • Ensure 100% of Dell packaging is either recyclable or compostable
  • Phase out environmentally sensitive materials
  • Recover 2 billion pounds of used electronics
  • Identify and quantify the environmental benefits of Dell-developed solutions

Slide1A Green Pathway for SMBs

“OK,” you may be thinking. “Dell is a big company and a major technology producer, so its strong environmental commitment can have a major impact. But for me as an SMB —using technology, not creating it—what role do I have in all this? And why should I bother?”

The answer is:  every business has a role, and reasons to go green. Most businesses waste not only environmental resources, but money and time as well. Often, these are resources that could be invested in developing new products or services, or to hire and train employees. In fact, even if you aren’t a tree hugger, it makes good business sense to green your IT environment and culture.

No matter the size of your business or where you’re starting from, you can take steps to go green and save green. For example:

  • Shop green. When buying new products, shop with vendors that walk the Green IT walk. Look for certifications from ENERGY STAR, the U.S. EPA’s mark designating energy efficiency; and from EPEAT, the mark of sustainability for electronics from the Green Electronics Council, which looks at multiple environmental criteria. Check out this video to learn more about EPEAT. TCO, a Swedish eco-label, is used mostly in Europe, and includes ergonomics, energy consumption, and recyclability factors. Whenever possible, buy from vendors that use eco-friendly packaging to reduce packaging waste, and put recycled plastics to work in their products.
  • Virtualize. Since hardware itself is relatively inexpensive, even SMBs often find themselves with server and storage sprawl. As mentioned above, these systems require the same amount of power at 25% utilization as at higher levels.  Moreover, managing 20 servers at 25% utilization is more complex and requires more people than i managing 10 servers at 50% utilization. While you have to invest in initial startup costs, virtualized server and storage resources typically take up less space, require less power to run, and help simplify maintenance. For instance, at just 12 inches wide and 19 inches high (30cm x 48cm), Dell PowerEdge VRTX is a simple and affordable way to run high-end, on-site applications with local storage, standardized infrastructure and centralized management. Incorporating Fresh Air capabilities, VRTX is made for the office environment. It uses standard 100V – 240V AC power, and doesn’t require any specialized cooling.  You can just plug it into the wall, and it runs as quietly as an air conditioner.
  • Reduce paper and ink waste. The U.S. Environmental Protection Agency (EPA) reports that the average office worker uses 10,000 sheets of copy paper every year. Even in this digital age, paper use in the average business is growing by 22% a year; at this rate, you’ll double the amount of paper you use in just 3.3 years unless you make a conscious effort to reduce. Switch from paper-based marketing, forms and faxes to digital solutions for email marketing, invoicing and other functions whenever possible. Buy remanufactured toner cartridges and get personal ink cartridges refilled to save money and cut waste.
  • Decrease power consumption. When buying new equipment, look for ENERGY STAR ratings of 5.0 and above. Use “set it and forget” tools, such as smart power strips, to automatically turn off peripheral devices when you turn off the main device.
  • Recycle old equipment. The U.S. EPA estimates that only 27% of electronic waste was collected for recycling in 2010. But it’s getting easy to recycle. Dell’s Asset Recovery Program offers an environmentally appropriate and convenient way to dispose of computer equipment. Or you can donate unwanted devices via Dell and Goodwill’s Reconnect Partnership—Goodwill gets the proceeds and you get a tax write-off.
  • Replace travel with web conferencing. Web conferencing reduces fuel consumption and saves time and money. Ecopreneurist estimates that if every small business owner in the United States were to conduct one teleconference in lieu of a domestic business trip, we would save $25.4 billion dollars in travel expenses and 10.5 million tons of C02 in just one year.
  • Embrace telecommuting. While it may not work for every employee or business, research network Undress4Success estimates that the United States could save $500 billion a year, reduce Persian Gulf oil imports by 28 percent and take the equivalent of 7 million cars off the road if workers were allowed to telecommute just half the time. Collaboration tools—from Google Apps to Microsoft Office 365—make working from home and staying connected easy.
  • Think thin. Thin clients are cheaper and simpler for manufacturers to build than traditional PCs or notebooks—and cheaper for you to buy and operate. For instance, Dell Wyse cloud clients use just 7 – 15 watts of energy on average when in full operation. In contrast,  a PC uses 80 watts of energy or more. In addition, it takes fewer materials and less energy to produce a thin client than a PC. Thin clients run Web browsers, and/or remote desktop virtualization software, so you can use the desktop environment that you’re used to. Desktop virtualization also frees users from being tied to a specific workstation and creates greater security because it is centrally stored on servers, instead of on local clients.

Perspective

Technology vendors such as Dell are leading the charge to design server, storage and client devices that consume less energy, build and package computers with eco-friendly materials, and provide recycling programs to reduce ewaste.

But creating a sustainable business isn’t just for big business. Everyone needs to think about the environmental impact of technology, and how they can put green technologies and practices in place to contribute to environmental sustainability. As an SMB, you can start taking steps today— not only to reduce your company’s carbon footprint, but to gain significant business and IT benefits as well.

This is the second in a two-part series sponsored by Dell that discusses why green IT is important, and how SMBs can develop and benefit from their own green IT initiatives.

Follow

Get every new post delivered to your Inbox.

Join 10,812 other followers