UPDATED 16:00 EDT / JUNE 05 2013

Dell Sets Expectations for Downmarket at Dell Enterprise Forum – Breaking Analysis

Dell Enterprise Forum is in full swing this week, and Wikibon Senior Analyst Stu Miniman is at the event getting all the latest buzz from the company.

One of Dell’s more noteworthy announcements is a new product, Vertex.  It’s a remote office or “data center in a box,” that updates to ActiveSystems, and benefits from a surprising partnership with Oracle.

Not surprising  however, is the buzz Vertex generated at Dell Enterprise Forum, and Miniman explains that this is due to the fact that Dell is trying to drive server, storage  and network solutions downmarket.

Vertex looks promising for converged infrastructure

“Vertex really looks like a large desktop PC, which of course, that market is strongly declining.  But Vertex actually is more enterprise technology.  Its modules are the same as its Blade server components, and it’s got a bunch of PCIe slots, which is impressive because it gives a lot of flexibility for things like flash or enhanced networking.  So I can have my compute, and my storage, and my networking all in a really small footprint, something that can sit on the desk or under the desk.

“I’m hearing pricing near the $15,000-20,000 range.  Bringing to that small office environment a nice piece of hardware with some cool flexibility – really low power, really quiet fans – it’s an interesting piece of hardware,“ Miniman explains, speaking on the buzz around Vertex on this morning’s Live NewsDesk Show with Kristin Feledy.

Dell cuts could urge new path

 

Product announcements aren’t the only things taking center stage at the event as Michael Dell’s performance, as the company’s CEO has been criticized for Dell’s slipping sales, profit and stock price as demand for PCs continue to decline.  It was reported that Michael Dell’s compensation has been reduced by almost 14 percent as a result.

According Miniman the 14 percent decrease is unlikely to affect CEO Dell, as he already has a lot of money.  But it could urge him to take the company into a different direction.

“The company is working hard, trying to put themselves as to where the future is going to be,” Miniman stated.  He also added that a lot of Dell’s customers are happy with its other products and a big turnaround, such as transitioning into mobile from a PC-focused business, is quite a huge effort but isn’t something that cannot be accomplished.

Miniman also stated that Dell’s planned buyback is indeed going to move forward, but there is still a question of whether CEO Michael Dell will actually run the company once it’s privatized.  It was also mentioned that Dell is looking into all the different hot areas in technology and it will make sure that it has the appropriate strategy in all those areas.

For more of Miniman’s Breaking Analysis on Dell, check out the NewsDesk video below:


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