Dell’s Deals in Cloud Computing

Dell’s Deals in Cloud Computing

Dell may be known across the world for its computers, but its well on its way to emerging as a serious player in the cloud computing space, if its recent spate of acquisitions is any indication. Its recent announcement to acquire cloud-based medical archiving services provider InSite One, Inc is another step in that direction.

Dell is looking to diversify from its niche as a hardware player and has acquired several companies in its bid towards becoming a solutions company, with 2009’s acquisition of Perot Systems being the biggest buy at $3.9 billion. Its shopping bag this year has mainly included companies in the enterprise solutions and cloud computing areas. Here’s a representative list:

1. Planned acquisition of Compellent Technologies for $960 million.
2. November acquisition of Boomi.
3. July acquisitions of Scalent and Ocarena Networks.
4. February acquisitions of Kace Networks and Exanet.

“We will roll out a comprehensive array of solutions for large and medium enterprises to help them migrate to a cloud computing model, specifically to private or hybrid clouds,” Dell’s Singapore-based managing director and general manager for South Asia and Korea, Ng Tian Beng has been quoted as saying in an interview. “We’re transforming from a hardware-centric company to a solutions provider. We see tremendous opportunity in the cloud, specifically our new VIS (Virtual Integrated System) architecture and services to help customers transition to open, cloud-like delivery models.”

Most of the activity will be centered in Asia, and with good reason – revenues from the region had grown by 29% in the third quarter of 2010 even as the rest of the world struggled to get out of the recession. Mr. Beng confirmed this approach, saying,

“We’re excited about the potential that this region offers for our solutions and services business. The goal for many of our new solutions is to reduce customer data management costs by 50%, thus freeing up more funds for strategic IT activities. We will integrate the new technologies from our acquisitions and from our business partners.”

After all these developments in 2010, 2011 ought to see some big announcements from Dell in cloud computing. With Dell’s entry, there are several big players in this space. Microsoft, Google, IBM and Salesforce.com were some early starters, joined by Oracle this year and Dell soon to follow suit.

By Sourya Biswas

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