Sneak Peak at Dell World’s SMB Focus


mark horanRecently, I had a chance to talk to Mark Horan, Vice President/General Manager at Dell to learn about what Dell World has to offer for SMBs. Here’s a recap of our conversation. 

Laurie: Hi Mark, and thanks for taking time to provide some color commentary on Dell World. As usual, my focus is on small and medium businesses, so can you preview for me what Dell will be doing at Dell World this year that is geared toward SMB customers?

Mark: Just like we purpose-design solutions for SMB customers, Dell World features speakers, sessions, solution showcases, and networking opportunities for SMBs. Two of my favorite things for SMBs are the User Forum, where customers can deepen their technical knowledge around Dell solutions, and keynote speaker Alexis Ohanian, a New York based entrepreneur who founded Reddit.

Laurie: Why would SMB customers and prospects attend Dell World?

Mark: It’s a world-class event and opportunity to network with and learn from not only other SMB customers but other types of organizations from around the world. The diverse perspectives are invaluable. For customers who rely on technology to grow their business, whether they’re Dell customers already or not, it’s a great way to learn about where Dell is going and how that helps customers achieve their goals.

Dell also recently commissioned an extensive research study that explores how respondents adopt, consume, use and influence technology in four key areas – mobility, security, cloud and big data. The research focuses on mid-sized organizations (100 to 5,000 employees) across the globe), and we’ll be sharing and reacting to the results in numerous sessions at Dell World.

Laurie: How many SMB customers do you expect to attend? Do you have any SMB customers being showcased at the event (Executive Track, Partner Summit, Main Track and/or Ancillary events)?

Mark: We expect over 600 SMB customers joining us for Dell World 2014. SMB customers will participate in all of the Dell World tracks: Executive Summit, Partner Summit, User Forum, and more.

Laurie: What particular SMB solutions is Dell showcasing at the event? Addressing which SMB customer problem areas?

Mark: We’ll be showcasing many of our solutions; ones that I think are of particular interest for SMBs include our SonicWALL network security appliances and management consoles that provide industry leading software-designed protection for facilities of all sizes from small branches to massive data centers; our 13G servers and new SC4020 storage array will also be prominent. Systems like these help customers increase performance, reduce their IT footprint, and maximize the value IT can drive for their business.

Laurie: Are there any ‘birds of a feather’ or interactive sessions specifically for SMB customers at the event?

Mark: Absolutely. My team and I will be hosting a reception on Wednesday evening at Cedar Street Courtyard in Austin for SMB customers, channel partners, and Dell leaders in the space. Any SMB customer registering for Dell World should ask their account team for an invite to the reception.

Laurie: I understand that  the Solutions Expo is a bit different this year and geared more around starting with a customer’s problem, then taking that customer down a specific path to a solution. What kind of path would an SMB customer take for the following problem areas at the show:

Mark: It is a bit different this year. It will help customers self-select the most relevant content for them including:

  • Mobility/mobile workforce Connect Journey to Evolving Workforce
  • Security Protect Journey to Security Deep Dive
  • Cloud Transform Journey to Cloud Deep Dive
  • Big data Inform Journey to Big Data Deep Dive

Other Deep Dive areas include: Services, Software, Internet of Things and Data Center.

Laurie: What makes Dell a good choice for SMBs?

Mark: Dell’s ability to provide industry leading and cost-effective solutions from the endpoint to the data center to the cloud that address key needs for productivity, security, data protection, and analytics is world-class. We architect and deploy these systems for SMBs through a dedicated model for sales and support from both our direct sales teams and our channel partners.

Laurie: Mark, thanks so much for the sneak preview, and see you at Dell World.

Disclosure: This post was sponsored by Dell.

Why Should You Take 3 Days Out of Your Schedule to Attend Dell World?

dell worldFrom November 4-6, Dell will host roughly 5,000 customer, partner and influencer attendees at its fourth annual Dell World conference in its hometown of Austin, Texas, and up to 10,000 attendees will tune in live online. 

For those who are unfamiliar with it, Dell World is Dell’s premier annual customer and partner event. Having found the three prior Dell World events I attended to be both informative and fun, I was eager to find out what’s on tap for this year’s event. So I was delighted to get a sneak preview from Jeanne Trogan, Dell’s Executive Director of Global Events, about what Dell World will offer.

With time arguably being our most valuable asset, here’s my take on why you’d want to take 3 days out of your busy schedule to attend Dell World based on this preview. 

  1. Gain a clearer understanding of how technology can help solve business problems and meet business goals.

Companies want to harness technology for better business outcomes, but it’s often hard to figure out how to do this. According to SMB Group’s 2014 SMB Routes to Market Study, small and medium businesses (SMBs) increasingly view technology as a means to automate operations and work more efficiently, and as a vital tool for creating and sustaining a vibrant, growing business (Figure 1). But the same study also shows that figuring out how different technology solutions can help their businesses is a top challenge for many SMBs.

Figure 1: SMB Technology Perspectives

Slide1

With this in mind, Dell World will provide customers–from SMB to large enterprises–with high-level advice and expertise to help them understand how and why key technology trends are reshaping business and consumer practices and behaviors. Keynote speakers, including Dell CEO Michael Dell and other tech and business innovators from business and academia will put cloud, mobile, analytics, security, the Internet of Things (IoT) and other trends into sharper focus, and help attendees stay ahead of the technology curve.

  1. Learn how to turn strategy into reality.

Refreshing your technology strategy and direction is the critical first step, but then you have to figure out how to execute. In fact, figuring out cost-effective ways to implement and/or upgrade solutions and to keep them up and running are also daunting challenges for SMBs (Figure 2).

Figure 2: SMB Technology Challenges

Slide1

Dell World is chock full of interactive sessions as well as hands-on labs and demos to help attendees kick the tires on new solutions, and fulfill the new technology requirements that their businesses require. Attendees can choose from more than 70 breakout sessions for a deeper dive into how to make technology work for the business. For instance session topics range from how to conquer cloud chaos to how to maximize mobility benefits without compromising security, and labs address areas such as big data and analytics, desktop virtualization, and streamlining IT management.

In the Solutions Expo, attendees can get an up close and personal look at the latest solutions. This year, Dell is reorienting the Solutions Expo from a Dell product-centric approach to a customer-centric problem and solution approach. The floor will feature different paths that start with technology problem areas, and guide customers toward relevant solutions and information. I think Dell’s refreshed approach to the Expo floor and demonstrations will be something that customer attendees will appreciate.

  1. Learn outside the classroom.

Just like when you were in school, sometimes the most important learning you do takes place outside of the classroom. Networking is a key part of Dell World with other attendees for fresh perspectives, exchange information and compare notes, not just at the event, but over the longer term. In addition to the serendipitous meetups that will happen spontaneously throughout Dell World, Dell is also scheduling meetings, such as an Executive Summit for CIOs, to facilitate peer-to-peer interaction.

  1. Enjoy Austin.

congress-avenue-bridgeIf you’ve been there, you know what I’m talking about! If you haven’t been there, you’re in for an amazing experience. In fact, Dell keeps asking attendees where they want to have Dell World, and people want to come back. Austin has something for everyone, whether you love music, great food or the great outdoors. For starters, Dell World will feature both Weezer and Duran Duran in concert–something for everyone from millennials to baby boomers. Get some fresh air with a walk or run around Town Lake, and grab a bite or drink at the Hula Hut as a reward. At night, check out the live music and gourmet food trucks on Rainey Street, or at Austin City Limits. And don’t forget to check out the nightly bat migration under the Congress Street Bridge. Last but not least, there’s the history–Dell was born in Austin in Michael Dell’s University of Texas dorm room. Since then, Austin has grown as a tech mecca.

Dell World also marks the one-year anniversary since founder Michael Dell won an extended battle to take the company private. In a recent CNBC interview, he expressed how liberating its been to off the Wall Street treadmill and able to focus on customers, and invest more time, R&D and energy on their behalf. I have a feeling that attendees will probably pick up on how this more positive energy is coming to fruition at Dell World as well.

Worms and Trojans and Snorts—Oh My! Perspectives on Dell’s 1-5-10 Security Discussion

digital securityLast week, I had the opportunity to join Dell’s 1-5-10 security panel discussion. This was the first in a series of small group events hosted by Dell to consider security trends and implications over the next one, five and ten years. Session attendees included Dell security experts, customers, partners, press and analysts. We discussed what small and medium businesses (SMBs) should be thinking about as they prepare for the future, and what vendors need to do to help them more easily secure their businesses.

Verna Grace Chao, director, Dell global security solutions, kicked off the session by asking us for our favorite security terms. The sheer magnitude of cyber-security issues and risks quickly bubbled up as people reeled off terms such as honeypot, snort, worms, hijack, Trojan, trampoline, phishing and ransomwear and more. I couldn’t help but think how difficult it is for business decision-makers to understand what all these terms mean, let alone stay ahead of threats and safeguard corporate information.

Of course, this challenge is even more daunting for small and medium businesses (SMBs) that lack internal expertise in this area. SMB Group research indicates that on average, only 19% of businesses with less than 100 employees have full-time, dedicated IT staff, and 27% have “no IT support” at all. Meanwhile, although 86% of medium businesses have dedicated IT staff, these resources are likely to be IT generalists, not security experts. As Michael Gray, Director, Thrive Networks, an IT solutions provider owned by Staples said, “there aren’t chief security officers in SMB.” So, despite mounting security risks and their increased reliance on the Internet and technology to run their businesses, many SMBs are under-prepared to deal with today’s threats, let alone those that the Internet of things (IoT) will usher in tomorrow.

Security Steps To Take Today

stepsFor many SMBs, the first step is to become more security aware. The Internet, mobile, cloud, social and other technologies provide many great business benefits. But they also open the door to more vulnerabilities. Too often, digital convenience trumps security, and SMBs choose not to see themselves as potential cyber-targets. Even worse, ITIC survey data shows 35% of firms don’t know if or when BYOD mobile devices have been hacked! Obviously, if you don’t know you have a problem, you can’t fix it.

According to ITIC, hacking is the #1 type of breach, representing more than 25% of all breaches recorded in 2013. Sub-contractor (14%), mobile (13%), insider malfeasance (12%) and employee error (9%) followed. In all, these breached exposed a whopping 91,978,932 records.

Without strong security measures in place, many SMBs are easy targets for hackers. And, because SMBs are often digitally connected to larger business partners, they are increasingly attractive targets. Hackers can potentially not only gain entrée to the SMB’s data, but also gain access to data of the SMB’s bigger partners.

Panelists agreed that if you haven’t yet done so, now is the time to conduct a security audit to determine what potential vulnerabilities pose the biggest financial and brand threats to the business. A solid plan incorporates both measures to prevent breaches from occurring in the first place, and those to detect, prevent and respond to incidents when they do occur.

Business owners and stakeholders need to take a more active role in this process, as Brett Hansen, executive director, Dell Client Solutions Software, explained. The security discussion needs to move from being a tech-only discussion to one where business stakeholders help identify, quantify and prioritize critical business vulnerabilities.

Since SMBs often lack the internal resources required to plan and implement the right level of security, they are increasingly turning to managed service providers (MSPs) for security expertise. A good MSP can help you get a better handle on what vulnerabilities could trigger disruptions, what the impact would be on the business, and develop a risk management plan that aligns with your business requirements and budgets. MSPs can help make security a solvable challenge instead of mind-boggling, unsolvable one. While you can’t eliminate every risk, you can close off the biggest vulnerabilities for your business—and gain peace of mind. Some of the basic measures to take include data encryption; data containerization for BYOD devices (meaning that personal and corporate data are securely separated); and securing the perimeter from unauthorized access.

Looking Ahead

telescopeTrends such as wearables, smart homes and smart cars are exciting and offer many benefits to businesses. But, they will also unleash new security vulnerabilities, especially as more devices and information become interconnected. Jon Ramsey, Dell fellow and CTO, Dell SecureWorks, commented that as cyber and physical domains continue to merge, the risk equation also changes substantially, and will require an expansion of single sign-on to help safeguard all aspects of our digital lives. Participants agreed that these trends will require a shift in the security mindset. Some of the changes forecast include that security solutions will:

  • Move beyond protecting data where it resides, to protecting data dynamically, wherever it goes.
  • Proactively account for the “human factor.” As security issues increase and become more diverse and complex, they need to become more contextual to make it easier for us humans to do the right thing. Biometrics, from eyeball to touch to even genome identification were mentioned as possibilities in this area. As Patrick Sweeneyexecutive director, Dell SonicWALL mentioned, security solutions should act more like more like an airbag than a seatbelt.
  • Become more adaptive, with capabilities to generate new defenses proactively as new threats emerge. According to Ramsey, “Every threat starts out as an unknown threat, we need to expose it and make it known to defend against it.” Risk analysis risk analysis engines will need to look further beyond individual events to act more proactively to accomplish this.              

Perspective

The good news is that in the future, security solutions are likely to be more adaptive, less dependent on humans to make them work, and more capable of proactively eliminating threats. However, far too many SMBs are falling short even when it comes to many security basics—such as encryption, containerization and perimeter security—leaving them far too susceptible to negative business consequences.

Cyber-security threats may seem endless, insurmountable and even unlikely to many SMB decision-makers. But this session underscored that while we can never eliminate all possible breaches, SMBs should be seeking out the solutions and expertise they need now to get the basics in place for today and to help them prepare for tomorrow.

Nine Signs Michael Dell Will Be the Comeback Kid

14111426889_67f83375a7_zA couple of weeks ago, I had the opportunity to go to Dell’s annual analyst conference (DAAC), an event I’ve attended for many years. The big difference this year, of course, is that this is the first DAAC since Michael Dell took his now 30-year old company private several months ago.

As a longtime Dell watcher, I’ve been tracking Dell’s journey from hardware vendor to become an end-to-end IT solutions and services provider (see my 2011, 2012 and 2013 perspectives). The event persuaded me that Dell is well on its way to accomplishing its mission to reinvent itself and offer customers a differentiated, more cost-effective and easier-to-use IT experience.

Why? Because Michael Dell has not only unchained his company from Wall Street’s myopic quarterly demands, but because he is also building a powerful value proposition for customers that puts Dell on a solid comeback trail. Key evidence for Dell being on the right track include:

1. Customers increasingly view Dell as a key partner. Dell’s mission to engage in deeper conversations with customers of all sizes is paying off. At DAAC, customers used superlatives to describe how Dell is delivering more complete solutions, higher value, lower costs, and a better customer experience. For instance, Ted Colbert, Boeing CIO, discussed how the Dell relationship has expanded from day-to-day operations to some of the most strategic initiatives. He also described working with Dell as “purposeful,” in contrast to a more scatter shot approach of “just throwing hardware at us like some other vendors.” Exasol CEO Aaron Auld talked about how Dell “provided them with the support they needed to win new business and grow,” and Jenkon Director of Information Systems, Steve Shinsel described Dell’s end-to-end solutions support as “phenomenal.” Yes, I know vendors handpick customers to attend these events, but in addition to the unprecedented level of enthusiasm I heard from these customers, Dell’s aggregate NPS (Net Promoter Score) of 52 and 90% customer retention are best in class.

2. Business is growing. Since going private, Dell says it has added 18,000 new customers to its ranks and is seeing steady growth in it’s software and services businesses, among others. In fact, the company’s PC business has enjoyed five consecutive quarters of market share growth. I think customers were naturally anxious as they waited to see how things would play out, but are now giving Dell a vote of confidence with their wallets. Furthermore, the company appears to be headed toward profitable growth, according to CFO Tom Sweet, who told us the company paid down $1 billion of debt in the first quarter of this year. Dell’s goal is to get back to “investment grade” status within the next four years.

 Screen Shot 2014-06-09 at 4.54.52 PM3. Entrepreneurial DNA runs deep and can now fully surface. Check out Michael Dell’s twitter handle! He knows what it takes to build a company from scratch, and being self-employed suits him. Freed up from Wall Street constraints, Dell can again operate in both a more strategic and agile fashion, and infuse employees with the entrepreneurial spirit as well. Dell’s high-level strategy remains the same to bring complete IT solutions to customers, be accessible and listen to what customer want. But the company can now more easily place some new bets to fulfill this mission. For example, Dell is investing to become a value-added cloud broker, positioning itself as an advisor to customers, rather than an OEM. In a very cloudy world, Dell’s Switzerland approach should be attractive to many customers. Furthermore, Dell has upped itsR&D spending from 1.6% of revenue to 2.1%. Last but not least, its hard to think of a more socially savvy tech CEOlistening ears are on!


14296498661_36be143384_z4. Execs and employees are all in.
 Other than customers, employees are any company’s best advocates. But, when there’s a lot of uncertainty in corporations, employees usually look for the nearest exit. But Dell is an exception. Despite a long, drawn out, uncertain and contentious (aka Carl Icahn) privatization process, Dell retained many of its top execs, such as Karen Quintos Senior VP and CMO; Jeff Clark Vice Chairman, Operations and President, Client Solutions; and Tom Sweet, Senior VP and CFO. Dell also attracted the fresh talent required for its transformation, including Andi Karaboutis, CIO; John Swainson, President, Software; Suresh C. Vaswani, President, Services. Renewed energy, excitement and loyalty were palpable in my conversations with employees too: when I asked how and why they stayed the course, they said they believed in Michael Dell’s vision—and several told me they bleed “Dell blue.”

5. Investment in a collaborative partnering model. Dell’s direct connection to customers provides Dell with many advantages, and will continue to be a key route to market for the company. But, Dell is investing in the channel to ensure it can sell to and service customers in today’s increasingly omni-channel world.  Dell has bridged what has sometimes been a gap in trust between it and the channel with a more collaborative partnering model. Dell is integrating regional channel and direct sales structures, paying Dell sales more for sales via the channel, and linking up regionally and locally with partners to pursue joint opportunities. Dell’s expanded portfolio also provides more partners with more headroom to grow with Dell. The results? Channel sales grew faster than direct sales in last quarter, and attach rates for channel sales are now within 3 to 4 points of the attach rates with Dell direct sales.

dell legacy of good6. Ethics, sustainability and diversity. In May, Dell was recognized as a 2014 World’s Most Ethical Company by the Ethisphere Institute, an independent center of research promoting best practices in corporate ethics and governance. Quoting the Institute, the EI award is given to companies “that continue to raise the bar on ethical leadership and corporate behavior.” Dell has also been recognized as a leader in environmental sustainability for many years, and recently 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. Finally, Dell’s executive team and workforce are diverse. Dell has also stepped up to help women entrepreneurs via Dell Women’s Entrepreneur Network (DWEN). Recent research from The Intelligence Group’s Cassandra Report indicates that among millennials, 59% say that a company’s ethics and practices are important factors in deciding what brands to buy. Pretty powerful stuff—and very tough to fake.

14113197698_5fef929bdb_z7. Stringing pearls instead of looking for one big rock. Dell has been investing strategically to acquire the IP and expertise it needs to package software and services in a more digestible way. While the theme at last year’s DAAC centered on the 12 acquisition Dell made, this year, the vendor spent more time discussing progress to integrate them and bring more complete solution value to customers. For instance, John Swainson discussed how, in the mobile management area, Dell combined Wsye, KACE and other assets for a single enterprise mobile management (EMM) solution to manage PCs, Macs and mobile devices. The vendor is looking to doing something similar in the cloud, giving customers a way to manage public, private, multi-cloud environments with open, scalable solutions. More recently, Dell acquired StatSoft, and intends to leverage this to reduce entry costs and barriers for customers in the analytics area. Just as important, Swainson emphasized that Dell will follow “the 80/20 rule,” to keep its software solutions as simple as possible to acquire and use.

14113201388_6075815e58_z8. The PC isn’t dead! There’s no question that the traditional PC market is declining, but Jeff Clarke took the stage to the tune of “we are not dead yet” from Monty Python’s movie Spamalot to deliver his “Top 10 reasons the PC is (not) dead” message. Good news for Dell, as PCs are the entry point for 70% of new customers. Of course, Dell also offers a growing array of other client devices—from Wyse thin clients to Chromebooks to tablets and laptops.

9. SMB growth and focus. Good segue from #8, as Dell’s fastest growing client business is the SMB market, which grew 28% in the last quarter. In my opinion, the “personal” in PC translates into Dell’s capability to expand SMB business into other solution areas. Furthermore, in an age of technology consumerization, consumer, prosumer and small business are inextricably linked. PCs provide Dell with a launch pad to expand SMB business into other areas. Dell’s direct model, which enables Dell to reach deep into SMBs, its continued focus on listening to customers, its new, collaborative partnering model and vision to sell more value at lower cost, should help keep Dell on this SMB growth trajectory.

In a nutshell, this isn’t your father’s Dell—or Wall Street’s Dell. It is Michael Dell’s Dell now, and it’s starting to benefit not only from being a private company, but also from the fact that as a private entity, it can more fully capitalize on the equally advantageous qualities summarized above.

 

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.

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.

Dell’s Green IT Growth Path: Paving the Way for SMBs

Slide1We are all becoming increasingly dependent on technology–connecting more devices to more servers and networks to communicate, collaborate, automate and get our jobs done. New mobile and cloud technologies put more information and resources at our fingertips than ever before. We’re updating solutions, devices and infrastructure sooner rather than later to leverage technology that can help us to improve employee productivity, attract new customers and streamline operations.

But we also need to think about the resources required to develop and use technology. What chemicals, metals and synthetic materials are needed manufacture and package bright and shiny new technology devices and systems? Where do these materials come from? Where do they wind up when we discard them for newer ones? How much energy does it take create technology products? And how much power is required to cool massive cloud and corporate data centers–or even just a couple of servers in your office?

While we tend to think that only IT vendors and big businesses can have a significant impact on the environmental impact of technology, all businesses, regardless of size, can use green technologies and practices to contribute to environmental sustainability–and at the same time, reduce costs.

What Is Green IT?

Green IT is the practice of managing technology resources in a more efficient and environmentally responsible way. Relevant areas include:

  • Reducing e-waste. Many metals, minerals, wood products and chemicals required to make and package technology devices. According to the Foundation for IT Sustainability (http://www.ffits.org/), ten percent of the world’s gold production is used in electronics, but only 30 percent of this gold is recovered from scrap. Even worse, only 10% of the copper used in electronics is recovered. Overall, the U.S. EPA estimates that in 2010, just 27% of the 2,440,000 tons of e-waste generated in the U.S. was recycled. This means that 73% is sitting in someone’s attic or trashed–potentially oozing into the soil and eventually into rivers, streams and oceans. In addition, many of these resources are not renewable–so we hasten depletion of a finite supply if we don’t reuse them.
  • Decreasing energy consumption. Consider the energy used to power our devices and data centers. For the most part, this energy is generated through coal-fired plants, which creates the greenhouse gas emissions that are a major cause of global warming. According to this Digital Power Group report, today’s technology and telecom ecosystem now consumes almost 10% of the world’s electricity-about 50% more energy than global aviation industry.
  • Solving environmental issues. Technology solutions can help us understand and remedy and/or prevent environmental issues. For instance, climate change modeling requires super-fast computers to crunch through data to calculate things such as a how fast sea levels are rising, or the likelihood of hurricanes and storms becoming stronger.

According to a recent BLS Green Technologies and Practices (GTP) survey, 57% of U.S. businesses use green technologies or practices to improve energy efficiency within their establishments, and over half use these green IT to reduce waste materials.

SMBs that want to start or build on a green IT strategy should consider not only how they can use technology in a more sustainable way, but also purchase solutions from vendors with a commitment to developing green IT solutions and services.

Why Dell Cares About Green IT

delllogoTechnology vendors have a major role to play in green IT. They can build computers with more environmentally friendly materials, design them to consume less energy, provide recycling programs to dispose of old systems, develop virtualization and cloud computing alternatives, and provide service to help businesses that want to go green.

Dell embraced green IT from early days, when it began its “Design for Disassembly, Upgradeability, Serviceability” initiative. In 1994, Dell became a founding member of the U.S. EPA’s Energy Star Program, integrating energy efficiency into every product line.

The company’s impetus is to make it easier for customers to be green. Dell makes it a point to design with the environment in mind and by embracing sustainability in its own practices, it helps customers reach their own sustainability goals while taking control of resources that create value.

Since then, the company has become an innovator in environmental sustainability.

In its fiscal year 2013, Dell has achieved several environmental milestones:

  • Doubled use of green electricity in Dell facilities. In 2013, 16 Dell facilities purchased 100% renewably generated electricity, more than double the number doing so in 2012.
  • Slimmed down packaging. By switching to padded envelopes for more than 500 items, Dell has reduced shipment weights by 73% to decrease packaging waste.
  • Increased use of recycled plastics. Dell has put 7.8 million pounds of recycled soda bottles and other plastics back to work to create backings for monitors and housing for desktops.
  • Expanded its EPEAT program. Dell customers can now recycle over 200 products, including printers, in nine countries. Dell has recycled more than 1 billion pounds of electronics since 2008.
  • Grew its employee work from home program. 20% of Dell’s workforce now telecommutes, saving an estimated 13 million kWh of energy, and 6,785 metric tons of greenhouse gas emissions–and save $14 million annually on facilities expenses.

Spreading the Green Around

Dell has extended its sustainability initiatives well beyond its own internal operations and goals. For instance, in 2013, the company added social and environmental (SER) criteria to its global supplier selection process, including criteria for clean water and air discharges.

In addition to broadening its EPEAT imitative, Dell is helping customers build proactive, sustainable IT strategies that not only benefit the environment, but save money and streamline operations. Dell Services helps customers assess current technology practices and determine options to green up existing practices, and/or develop new approaches to meet sustainability and fiscal goals.

With each new generation, Dell products consume less power. For instance, Dell has reduced energy consumption in its desktop and notebooks 25% since 2008, and Dell servers are warranted to run for extended periods at up to 113°F/45°C with only fresh air cooling.  Dell KACE Appliances offer green IT management capabilities that conserve energy by controlling how quickly desktops go into low power states.

Taking a green IT approach can also provide companies with benefits beyond energy reduction and cost savings:

  • The University of Nebraska-Omaha slashed energy use by 93% and also increased student access to client computers by replacing traditional desktops with Dell Wyse thin clients.
  • Amerijet cut facility costs by 60 percent through energy efficiency and reduced the time to print a manifest and close flights by 96 percent by implementing a virtualized data center and new business processes.

Perspective

Dell and other IT vendors have a huge role to play in ensuring that we use consume and use technology in a more sustainable way.

But the green IT story isn’t just for Dell and other big businesses. SMBs can develop green IT strategies to reduce their carbon footprint, and gain business and IT benefits in the process.

In the next post in this series, I’ll provide some practical tips to help you get started or continue on the path to help your business reap the benefits of going green.

This is the first 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 10,351 other followers