Dell Says No To Building A Public Cloud
CRN, Apr 9, 2014

If you are waiting for Dell to rollout a public cloud offering to compete with HP, Cisco, Amazon and Rackspace don't hold your breath. Michael Dell, CEO, says he has no interest in building a public cloud

If you are waiting for Dell to rollout a public cloud offering to compete with Hewlett-Packard, Cisco Systems, Amazon and Google, don't hold your breath. Michael Dell, CEO, said he has no plans on entering the jam-packed public cloud market.

"I think the public cloud is a crowded space, with lots of guys playing there," Dell said. "In terms of building a public cloud to compete with the partners, we are not doing that at all."

Dell said the market is too congested with established players such as Hewlett-Packard, IBM, Amazon, Google and Microsoft along with new entrant Cisco, which recently announced a new public cloud initiative. He said that his company will focus on the on-premise cloud market and being a hardware arms dealer to companies building their own public cloud.

"We have taken a different approach here," Dell said. "Instead of competing with all of those service providers and telcos, we are enabling them. There are also a number of firms out there like OnApp that are integrating our hardware platform and allowing VARs to create their own cloud platform."

He said his company is focused on selling infrastructure into the private cloud space.

Cisco, for its part, pledged $1 billion on building its own public cloud offering last month. IBM recently upped its public cloud game when it purchased SoftLayer cloud services for $2 billion last year and then followed up the acquisition by spending another $1.2 billion on expanding the network globally.

IDC forecasts worldwide spending on hosted private cloud services to surpass $24 billion in 2016. By comparison, IDC says global public IT cloud services spending is growing much faster and will reach nearly $108 billion by 2017. It's that market potential that is driving the current public cloud craze.

"We believe that there is still a large proliferation of on-premise cloud deployments that are happening in the enterprise space, small medium business and above," said Marius Haas, Chief Commercial Officer and President, Dell. "We have got all of the services for that business. One of the big announcements you saw from us was an announcement with Red Hat where we jointly distribute OpenStack solutions and we wrap our Advantage or professional services around it."

He said Dell was working on a cloud market place project that included multi-cloud management tools based on an ecosystem of partner and ISVs. He added the goal is to give the Dell community a "seamless on ramp for customers to go both private and public, secure their data, protect their content at the time they feel comfortable with doing it."
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