Dell – Cloud for dummies.

 

 

 

 

 

Finally an innovation from Dell but it needs to be made available to the right customer.

  • For the last few years Dell has appeared to randomly make acquisitions in an attempt to stave off the ravages of hardware commoditisation by branching out into software.
  • To date this hasn’t helped much as the problems that the company faces in PCs have vastly outweighed any improvements on the software side.
  • However, last week the Dell unveiled something that I think could be of interest.
  • Project FastPaaS is a new take on the traditional PaaS (Platform as a Service) offering that makes the creation and management of applications much more straight forward.
  • Typically PaaS is a blank virtual machine plus a tool kit and the customer builds or ports his own applications to run on it.
  • This is what Amazon Web Services (AWS) and HPQ offer.
  • FastPaaS is not targeted at developers, but at higher level users who are involved in designing IT rather than just coding.
  • Users basically decide what infrastructure they want including the databases, runtimes and what applications they want and the whole system is delivered with a minimum of fuss.
  • This has two distinct advantages that I can see.
  • First. It looks very easy to use, doing away with the need for armies of in house developers.
  • Second. It’s a one stop shop making the job of systems integration much easier.
  • In short this is an innovative approach that I think could resonate well with customers who are new to cloud and want a hassle free implementation.
  • The disadvantage as I see it is that it is on-premise.
  • This means that the customer owns all the hardware meaning that one of the great selling points of cloud computing, fixed IT cost becomes variable, does not apply.
  • For a large company, I don’t think on-premise matters because it is really the SMEs that benefit from having a variable IT cost.
  • However, I think that the nature of this solution will appeal much more to smaller customers.
  • Large organisations already have a lot of in-house development and as long as it is cost efficient, there will be no real saving or benefit by outsourcing it to Dell.
  • A smaller organisation with no in-house development will find this much more appealing but a small organisation is unlikely to want a private cloud.
  • Hence, if FastPaas was to be made available off-premise, then I think it would have a lot more appeal as the IT cost would then become variable depending on usage.
  • This may not be as straight forward as it sounds as the off-premise cloud solution really works when everyone runs the same instance of software on common infrastructure.
  • FastPaas is highly customised which is why the solution seems to be limited to on premise only.
  • This offering has promise but it needs to be directed at the right customer, as in its current iteration, I think it will remain beyond the reach of those that stand to benefit most from it.

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.