Dell Hopes To Fire Up Its Consulting Unit With “Do As We Do” Message And Emphasis on Virtualization

December 1, 2008

Dell hopes to step up its services and consulting business with a “do as we do” message based on lessons the company learned from its own data centers.

Dell competes in services with more established IBM and Hewlett-Packard

Dell competes in services with more established IBM and Hewlett-Packard

The computer maker will launch its Data Center Optimization Services on Tuesday claiming that virtualization and other practices could help clients cut data-center energy cost by up to two-thirds.

Dell boasts that is has saved more than $29 million over three years in energy, maintenance and other costs at its data centers – even while computing capacity has risen 270 percent in the past two years.

“We believe we have something here,” says Albert Esser, vice president of power and infrastructure solutions. “Virtualization is really an enabler.”

Even with data center workloads increasing 50 percent a year, clients should be able to keep energy costs from going up, says Esser.

With a more aggressive use of virtualization and a regular plan to refresh equipment every three to four years, their energy bill can go down, he said.

Dell says the expanding use of dual- and quad-core chips in servers has lowered equipment-utilization rates in data centers to 5 percent. Lower utilization typically means less efficiency and higher energy bills.

Dell competes in services and consulting with more established businesses at rivals IBM and Hewlett-Packard.


Netbooks Compliment Notebook Sales, Michael Dell Says; Company Favors Profits Over Growth

November 20, 2008
Michael Dell using virtualization to spark commercial sales

Michael Dell using virtualization to spark commercial sales

Increasingly popular netbooks – low-cost notebooks – don’t appear to be stealing sales from more expensive, higher performance laptops, said Dell CEO Michael Dell.

“It appears to us this is mostly a complimentary category,” Dell said on an earnings conference call Thursday. “We (are) diving into that in a big way.”

Netbooks have been among the fastest growing segments of the PC market in the past quarter, especially in the emerging markets where consumers have less to spend.

Dell also said his company is focused on fielding products with good margins instead of cutting prices to gain market share.

“Given the choice between profits and growth, we’re going to go for the profits,” he said. “The first priority for us it so retain solid profitability for the company” in today’s tough economic climate.

Dell added that he expected to include more virtualization software in his server and storage lines to spark growth among commercial customers.


Microsoft Takes Aim At The Virtualization Market And VMware

October 23, 2008
Virtualization software can run Mac programs inside Windows installed on a Mac

Virtualization software can run Mac programs inside Windows installed on a Mac

In difficult times when customers are tightening their spending on technology, where is a software titan to turn? To the virtualization market, Microsoft CFO Chris Liddell said Thursday.

Microsoft will cut spending to compensate for the recession it assumes is coming. It also will aim its sales force at hot product areas – the one of which Liddell named on a first-quarter conference call was virtualization.

Customers will increase the use of virtualization software on their servers and Microsoft’s product is one-third the cost of its “largest competitor,” he said with an obvious reference to VMware.

In the recent first quarter (ended in September), Microsoft grew its market share, he said. It now has 25 percent of the market for virtualization software on x86 servers, he claimed.


Gartner’s Top 10 Business Technologies For 2009

October 20, 2008
Moving beyond simple blade servers

Moving beyond simple blade servers

Missed this the other day. Gartner’s top 10 enterprise technologies for 2009. According to Gartner, these strategic technologies could have a significant impact on corporations over the next three years.

Translate that to mean disruptive big budget items:

1) virtualization, 2) cloud computing, 3) more sophisticated blade servers with the ability to add memory, storage or features when needed, 4) Web-oriented architectures, 5) enterprise mashups, 6) specialized systems or appliances for single-purpose jobs, 7) social networking and other social software, 8) unified communications, 9) business intelligence, and 10) green IT.


Virtualization Is #1 Driver For AMD Push in Server Chipset Business

September 30, 2008

Virtualization was one of the main topics discussed this morning at AMD’s “Shanghai” media briefing in San Francisco.

First, was the key issue of moving virtual machines using VMware’s VMotion administration tool between AMD and Intel servers. Unable to do so, companies will then have to decide very early on whether to choose between AMD or Intel hardware platforms.

“It’s possible but under certain conditions [AMD promised to "get back to us" with more details. Comments Margareth?]. But there are also issues in moving virtual machines from Intel to Intel servers”, said AMD’s server and workstation division general manager, Patrick Patla.

AMD’s executive also confirmed that virtualization and virtualized I/O was the #1 driver for the company’s push into the server chipset business. Effectively competing with partners like Broadcom or Nvidia that had so far supplied the chipsets for AMD’s server processors.

“Virtualization is now in our DNA and when we do silicon design or we’re thinking of enhancements we always think about what we can do for virtualization
… We need it [the chipset] to make sure that it’s done right, that we bring the feature [virtualized I/O] to market when we think it needs to be there”, explains Patla.


[Ballmer @ Churchill] Microsoft To Bring Virtualization To The Masses. But Sees No Recentralization of Desktops (video)

September 27, 2008
Steve Ballmer, CEO, Microsoft wants to bring virtualization to 80% of the world's servers

Steve Ballmer, CEO, Microsoft wants to bring virtualization to 80% of the world

For Ballmer, server virtualization is still at a very early stage: “less than 5%” of servers are virtualized. VMware and other industry observers are talking more of 10% but maybe Ballmer is thinking of only “Windows” servers! Microsoft’s CEO sees the added management layer complexity and the high cost of virtualization software being the main culprits.

“The virtualization software on the market has been extremely expensive. My opinion. The way you manage virtualization is deviated from the way you manage everything else from the datacenter. And so, we see a real opportunity to commoditize virtualization: more integrated management, lower price, high quality (sic!)… We had a tremendous reception to the work we’re doing with Hyper-V and our systems management software around it.

Read the rest of this entry »


VMware Is The New Netscape… And Could Fail, Larry Ellison Says

September 26, 2008

In fact, “VMware is less protected than Netscape,” the mercurial Larry Ellison said Thursday. That’s because virtualization is a feature of an operating system – even more so than a browser.

If virtualization is roped into the OS, VMware could become dinner for Microsoft, in much same way Microsoft made a meal of Netscape more than a decade ago.

“(VMware) got to the market early,” Ellison said at a meeting with the Wall Street stock analysts. Now, “I don’t see how they have any chance.”

Competition will quickly heat up. Microsoft, Sun Microsystems, Red Hat and Oracle are all building virtual machines.


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