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Michael Dell opens Dell World with an eye to further consolidation

Allan Swann | Oct. 22, 2015
Michael Dell opened DellWorld '15 in Austin Texas, laying out his vision for the future of the new company following the Dell-EMC merger.

Dell CEO, Michael Dell.
Dell CEO, Michael Dell.

Michael Dell opened DellWorld '15 in Austin Texas, laying out his vision for the future of the new company following the Dell-EMC merger.

Dell claims the merger will create an $80bn dollar revenue company, that will benefit mostly from its scale when selling end to end hardware, software and security - making life a lot easier for CIOs worldwide.

"The new company is already a leader in 22 Gartner magic quadrants," he said.

"We're incredibly excited by this combination.

"Last week was about the EMC deal, this week I get to explain version 1.0 of my unifying theory of the universe," he joked.

Without going into specifics, he said that his main DellWorld keynote will explain some of his new solutions. And that "Version 2.0" will be revealed when the transaction closes.

"I have spent some time thinking about all this. Where we're heading strategically as a company, the benefits for our customers, and how well positioned this new company will be."

He invited two key clients of Dell's Rick Mears, CIO of Owens and Minor and Rob Klomps, global head of infrastructure for Rabobank to describe how their relationship with Dell will expand under the new arrangement.

Global supply chain and logistics company Owens and Minor has worked with Dell for 17 years, focused on IT services. It has flipped its agenda from simple tactical operations to strategic solutions around its ecommerce and supply chain, utilising the Cloud to build better efficiencies and leverage its scale into new markets.

Rabobank has been using Dell's datacentre infrastructure, which saw it overhaul its Dutch trading room. It is currently working on the London trading room. Klomps said Dell has helped the bank become more agile, more efficient and manage its opex better. It will be using Dell to help mobilise its workforce, and overcome its technical challenges relating to network transformation.

Both said they were excited to be working with the new IT behemoth.

The key focus Dell raised in his speech was scale - an interesting viewpoint given that key rivals such as HP are splitting to increase their agility.

"We have a different viewpoint to how our company should evolve. We think scale is important. The companies that have succeeded in this industry are those that have succeeded in the volume datacentre space, and have been attached to large PC businesses, and client businesses. The volumes really matter," he said.

"Customers want fewer suppliers, not more. Research from our executive summit, from CIOs, they were telling us 'you're making our jobs a lot easier'," Dell said.

When asked if the merger was a response to slower growth in the enterprise-IT world, and as a response to Cloud rivals such as Amazon, Dell was blunt.


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