(one click brings in key messages table)All our major competitors are trying to solve the same high level problem of making IT more efficient and more agile for today’s fast-change and global world. How they talk about it and the emphasis of their key messages is different. Let’s talk about how you can try to de-position our competitors’ messages in the everyday conversations you have with executive customers.It is important to note that at an industry level, macro-marketing messages are all trying to do the same thing. Everyone is now competing for EVERYTHING. While we have always competed across all lines of business, the Power to do More is our strategy that enables us to utilize everything we do, client, servers, networking, storage, services….everything, to solve customer challenges. Same goes for HP. You might see an expansive worldview that is datacenter specific, but make no mistake, they’re competing for EVERYTHING. While Cisco doesn’t have end user devices, they solve for the end user experience and are competing for EVERYTHING in the middle, and specifically in areas like VOIP where we are not in a position of strength.------------------------------------------that is high – level, keeping below for added content-----------------------------------Cisco takes a very technology centric view, where the network is at the center of all of their messaging. It is very inward looking and is also focused on a specific element of a customers IT environment.The center of IBM’s message is another inanimate object – the planet. While IBM has done a great job with brand awareness and their advertising, it continues to dehumanize technology by focusing using technology to improve planets, e-commerce, and systems.HP’s message is more closely aligned to Dell’s: it focuses on outcomes, which is important when trying to market services and solutions. Its technology message is focused on the fact that HP can help its customer build an instant-on data center using only its products and services.Dell’s message, from the top of “The power to do more”, is focused on people and how technology can serve people. To quote Michael Dell, “Technology has always been about enabling human potential.” Our message around the data center is starting to focus on business outcomes that our enterprise technologies enable. Dell has always been about the customer and we will continue to focus on people in our approach to offering technology-based solutions.
To begin, we need to state up-front that we are late-to-market with what HP and Cisco call “converged infrastructure”. We do not have a vertically integrated solution managed by a single-pane-of-glass orchestrator spanning compute, networking and storage. However, we cannot let HP and especially Cisco define what convergence means to our customers. In fact, converged infrastructure is a Cisco-led discussion, and if you ask 10 customers, or even 10 contacts at one customer what “converged infrastructure” means, then you’re likely to get 10 different answers. The net is, lead all customer conversations with questions that surface underlying challenges they’re trying to solve for. This has long been Dell’s approach to solving for customer’s challenges, that we believe is differentiated because we don’t over-commit technology customers can’t use, or technology that is proprietary and inflexible to the point of creating more silos of complexity in their data centers.
ESG 2011 Virtual Computing Infrastructure Report76% interested in integrated computing platformsKey drivers being faster deployment time & ease of managementIDC – Feb 2011 IDC Convergence trendConverged infrastructure & private clouds to rein next 10 yearsGartner, 2010 StudyProjects 30% of all datacenters will be converged in 2-3 yearsIntegrated appliances (Fabric Based computing) still early in adoptionBain NGCS IT-Ops Study, 2010Converged infrastructure seen best fit for infrastructure servicing broad needs, shared services (1-2 yrs)Opportunity in providing open and flexible CI solutions that speeds deployment
Cisco’s intent is to utilize their networking share to commoditize the server arena, and centralize the provisioning/management of workloads around the network infrastructure group in our customer’s IT organization. This effectively centralizes power and value in the IT organization into the networking group and minimizes the value of the systems admin in compute and storage groups. They provide industry certifications and career path training, thus creating advocates in your customer’s IT environments who also will sell their value up the organizational stack. Therefore many times you will be presented with Cisco/network value statements and be asked how Dell is differentiated. The key differentiator for us is we own the solution journey…from their clients systems to their future growth and potential/reality for cloud solutions. Cisco UCS does not own the client, they do not even own (or tightly manage) storage of their solution, and they don’t own the pathway to the cloud.This is not an exhaustive list of differentiation statements, nor exactly how you would deliver them to your specific customer. The intent of this discussion is to provide examples of how you would differentiate Dell in your customer environment, but the key is to know your customer. What do you already know about their business challenges? What is the competitive landscape?1. Customer’s challenges shouldn’t be defined by a singular solution - We maximize the customer’s business model, not ours.We build our solutions on a truly open framework, not a locked-down reference architecture. We can deliver applications from the client to the cloud, from one trusted source.2. Management Innovation with Real Time Infrastructure - Dell designs just-in-time infrastructure that is reliable and proven through generations of innovation. Dell integrates management tools and key IT processes, embedded on the discreet hardware that support converged IT & improved application/service delivery.Industry Leading Power Utilization Efficiency – Technology that solves for IT complexity but creates downstream cost increases in power consumption and data center cooling isn’t a solution. Dell solves for power utilization and cooling in every discreet infrastructure system that comprises our data center solutions. Convergence on Your Terms -Dell believes that convergence technologies that aren’t fitted to prove customer business outcomes are just…technologies. We recognize that each customer has different business outcomes, so convergence means something different for every customer, and therefore has different infrastructure workload requirements. Dell can help you deliver your workload experience on your terms, using the infrastructure profile you want to use, speeding time to value, leveraging investments and moving at your pace.
POV Pillars and DifferentiatorsUnify management without compromising domain-level control Server, storage and networking management via a single console. Storage management capabilities in the near future. Stateless computing to reprovision your servers for any workload within a matter of few minutes.Validated recipes/RAs such as Sharepoint, Exchange, VDI to have your applications up and running in quickly.Does not force lock-in as Cisco does; we allow you to maintain choice of networking vendor.Differentiates from Cisco UCS by separating the management plane and data plane to deliver reduced risk, increased security, and increased scalability.Unify management without compromising domain-level control – Dell is helping simplify administration by enabling a single admin to do the job of 3-4 across compute, storage, networking and virtualization. Unlike HP that forces you to use 2-3 tools Dell has 1 (Skyhawk) and Cisco has flaws – they force lock in to their networking while Dell allows you to maintain choice of networking vendor. Also Dell separates the management plane from the data plane which helps reduce risk, increase security and increase scalability – Cisco does not. Automate more to improve efficiency and governanceBring a new server from pallet to production in x% fewer stepsReduce number of management points from X to X-nIntuitive, simple to comprehend, easy to adopt --> no 2-week classroom training needed!Differentiates from the competition by offering the lowest TCO; lowers adoption costs by using fewer components, no IT staff training needs; uses standards-based technologies that works with existing infrastructure; lowers on-going operational costs; power & cooling savings, etc.Low cost of adoption especially if you are already a Dell customer since we are not disruptive (in a bad way) and force you to adopt a new network centric architecture (FUD alert)Use templates for faster and more efficient management, re: HP (what does HP do)? Dell also excels at automating more to improve efficiency and governance – with the lowest TCO and fewest number of tools. Using pre-defined templates customers can move from pallet to production quickly with reduced management points – all while ensuring visibility and reserving control by each domain admin.Collapse virtual and physical management for optimal agilityUnique capability to manage your physical and virtual infrastructure from you virtualization console.VIS Creator – Unique ability to do end-to-end lifecycle management on your physical, virtual and public cloud resources via a single private cloud consoleA much more comprehensive solution than HP Virtual ConnectCisco offers limited virtual management (e.g., network) compared to future Skyhawk plan for FY14Dell offers better VMware plugins, re: HP (none for Cisco)Next, Dell works to collapse virtual and physical management to optimize agility in delivering apps and IT services. Dell let’s you manage the environment from your existing virtualization consoles like vCenter or Systems Center to do end-to-end lifecycle management, thus supporting and augmenting existing customer management paradigms without rip-and-replace. Adopt new infrastructure architectures to gain efficiencyReduce number of cables by x%, switch ports by y% by converging your storage and LAN traffic.All the speeds and feeds differentiators should go here. Fresh air, lower power and cooling requirements. More VMs per U. Find attached claims for 12G.Storage differentiation with ColossusDoes not force you to adopt IO convergence (though we will recommend it for lowering TCO)Keep local traffic local and reduce need for expensive uplink ports (with east west traffic)Choice in network architectures, re: Cisco UCSOption to include storage, esp in blade form factor, re: Cisco UCSEnterprise class blade storage, re: HP BladeMatrixWorld’s only ¼ height blade enables extreme compute density for better consolidation and infrastructure simplicity, re: Cisco and HPZeus and Plasma differentiators, re: Cisco and HPDell believes the successful converged infrastructure deployments require a rethinking of the architecture. Blades, which provide the foundation for convergence, and Dell offers a complete enterprise-class blade architecture and chassis options which include storage, something Cisco lacks. We also offer the only ¼ height blade for extreme computational density which focuses on consolidation & simplicy – something HP nor Cisco offer. Leverage flexible infrastructure consumption modelsNo one size fits all approach like UCS. Flexible solutions from Solutions such as Plasma, vStart, mystique, thunderbolt to fit your use cases.Flexibility to Scale up and scale down on an on-demand basis. We are not new to this game compared to Cisco –12th gen of servers versus Cisco’s 3rd gen; In 2007, Dell released the industry first virtualization optimized server platformBenefits of 12G servers (such as Failsafe Hypervisor, FlashSSD, some great performance numbers I'm sure, etc.)Form-factor superiority with M420Extreme flexibility and choice in server configurations (myriad of options for processor, memory, etc.)Provide holistic solutions from one vendor with a single support model, re: Cisco, VCE, and NetAppDell’s direct model enables more efficient fulfillment of pre-assembled solutions, re: Cisco and HPFinally Dell offers the best variety of infrastructure consumption models – from the best range and performance rack and blade servers for do-it-yourselfers, to reference architectures, to pre-integrated solutions. Dell offers a singular buying experience and single support model across hardware and management elements. Dell is more complete than Cisco, and easier to work with and fulfill quicker than HP.
Here is the reality check. We CLASSIFYfour groups of customer challenges that link to Gartner’s taxonomy for Data Center Transformation), and these are important to learn for they are how we are going to group, track W/L BI and discuss during the UCS War Room. Cisco’s perception is that all customer datacenter transformation challenges are being addressed by one solution by Cisco – UCS. That it not to say that is what they are selling every time. Some times it is an EMC-led VCE deal, or a NetApp-led FlexPod deal, sometimes it starts off as UCS but ends up being a Cisco rack-server deal with a network upgrade. The point is that they are trying to address everything with the easy button, and this is exactly how they would have tried to solve Pacific Sunwear’s challenges.At Dell, we don’t have the easy button, at least not today. What we do have is a FULL end-to-end portfolio of products and solutions that are customized to solve for each of these customer data center transformation challenges independently, or all of them together, at the same time.
And since the strength of our vision is the strength of our products and services independently, made stronger when deployed as complete solutions, it is important to make our customers know that we continue to build on our strengths via organically-developed and acquired IP, services and partnerships. When your have this discussion with your customer you can show just how broad our capabilities are compared to Cisco.Make no mistake, Cisco has acquired IP and developed partnerships as well. They have “hit the easy button” for customers by delivering a vertically-integrated and holistically managed stack. But that stack’s value is limited to the technology in the network. For example:Delivering a superior customer outcome: Dell has acquired best in breed infrastructure to deliver superior workload performance and value, help customer secure, patch and update their solutions easier and help their people provision and reclaim these workload resources faster so our customers can spend more time on driving business, not putting out fires.Deliver best-in-class convergence integration: Dell was the first to market with the integration of a customer’s hypervisor platform-of-choice with discreet virtual and physical resources. Our hypervisor plug-ins enable easier management of resources within the tool our customer’s administrators use the most, and are integrated with large-scale orchestration managers like BMC Atrium and MS System Center.Offer public or off-premise cloud solutions as an element of driving convergence: As an alternative to introducing a silo of complexity in UCS to reduce management issues related to complex applications, why not just get rid of managing them altogether? Putting problematic applications into a controlled private cloud solution enabled by Creator, or by simply having Dell host them in the Dell Cloud, enables better applications performance without the added cost and complexity.Deliver the flexibility to support multiple deployments and management options: this is completeness of the public cloud vision that Cisco simply doesn’t have. We have the ability to provide complete end-to-end solutions, whether they be infrastructure, software or platform, or manage their applications and infrastructure via the Dell Cloud Services.Continue to apply lessons learned from Dell’s DCS/ hyperscale business: Cisco wants customers to think that compute is to be completely commoditized. 12g innovations notwithstanding, Dell continues to drive innovations learned from DCS and PowerEdge C. What happens when Dell customers realize that their compute/scale model no longer fits traditional compute/design/delivery industry models???? Dell stands up an entirely new business model called DCS. What happens when many of our customers see they could benefit from the scale and compression of DCS but need more flexibility and manageability they enjoy with PowerEdge Servers???? Dell introduces a new data center compute model for those customers, PowerEdge C. Continue market leadership in virtualization. On top of the plug-ins, is our commitment to lead the market in virtualization via the design and manageability of our systems across the ecosystem. We have best-in-breed virtualization across compute, networking via Force 10, and storage from a single vendor.
Repository Manager enables customers to build a custom lifecycle update catalogRM can work through a proxy server to build the custom repositoryCustom repository of updates can then be stored behind the firewall on a network share or USB keyLifecycle Controller enabables customers to update their servers via the repositoryBenefits of utilizing Repository Manager with Lifecycle technology for system updates •Update systems safely behind the firewall–Does not expose systems to Internet-based threats. Only Repository Manager requires access to the Internet–Provides easy/safe methodology for building shared environment and ensuring preservation of master catalog that can be shared to systems behind the firewall as needed. •Own version control–Create collections of updates in Repository Manager to manage which ones to distribute–Isolates systems from ‘real time’ changes on the global Dell site–Implement updates to your systems based on your needs•Apply updates at the system and component level–Smaller repositories instead of large 4GB files–USB for updates to a small number of local servers–Local share for a large number of servers•Maintain separate repositories for different workload environments–Build libraries based on workload stack certifications or server type–Develop test/dev and production repositories as needed
Life as a CIO…2 Dell Confidential 2 Confidential 11/2/2
Key messages from the top vendors Power to Let’s do A smarter The humanCorporate do more amazing planet network Network Business Outcomes Smarter as Message Efficient IT that commerce strategic matter assetEnterpriseTechnology Technolog Network is Instant-on Smarter y that the enterprise systems empowers platformGross Margin 21% 23% 3 47% 61% 3 Dell Confidential
Efficient and agile IT operationsDesigning solutions that enable IT to respond to thebusiness fast and effectively Virtualization Cloud Convergence
The truth today… Convergence …just like mainframe, distributed systems and cloud, is an IT model DEFINED in the CUSTOMERS’ TERMS. • Convergence is not a new concept • Convergence always involves tradeoffs • Convergence should always about driving customer outcomes • There is no single approach to or recipe for convergence that adequately delivers across all desired customer outcomes Many of today’s approaches to convergence are heavily indexed on fabric-based convergence solutions that are expensive, complex & inflexible.5 Dell Confidential
Converged Infrastructure as thefoundation of Private CloudThe TaxonomyBilling, Hybrid, Security, Private Cloud Capacity Planning, Etc A model for enabling ubiquitous, convenient, on-demand access to a shared pool of configurable computing resources that can be Cloud Management & rapidly provisioned and released Orchestration with minimal management effort or interaction. Market Virtualization Virtualization Revenue and Adoption Today Converged Physical Management Infrastructure An infrastructure model that brings together key IT elements – across Storag Networ compute, storage, networking &Server e k management – to improve efficiency and agility.
Customers’ likelihood to adoptconverged infrastructure
Converged Market SizingShifting Buying Patterns to Cope with Agility & Efficiency 30% of data centers will be 10 Converged infrastructure & 76% of companies seek converged in 2-3 years private clouds to reign integrated computing next platforms 10 years Lower cost of unit of management compute work Time-to-value for Faster infrastructure application & cloud deployment deployments Simplicity and speed of Gartner: 2010 Data Center Conference Survey, December 2010 IDC: Convergence trend, February 2011 ESG: Virtual Computing Infrastructure Report, January 2012
Convergence will be pervasiveA methodology that touches every part of IT: infrastructure,operations management, applications, and service management Infrastructu Operations Applications Service re management managementFull physical Empower teams Technology Transforms howand virtual to become more and/or service IT services areconvergence to productive, to enhance delivered todrive greater reduce performance & on-premiseefficiency, operational availability of private cloudsreduced space & costs, increase applications or off-premisereduced energy manageability & public clouds speed application & service delivery
Dell Converged Infrastructure StrategyConvergence infrastructure collapses and automates criticaladministrative tasks to speed up routine tasks and free upexperts for higher order needs Challenge Solution Note: Converged admin owner can vary by domain
Dell Differentiation Statements 1. Dell maximizes the your business model, not ours: Customer’s challenges shouldn’t be defined by a singular solution 3. Dell delivers industry-leading power efficiency: Technology that solves for IT complexity but creates downstream cost increases in power consumption and data center cooling isn’t a solution. 4. Dell delivers convergence on your terms: Convergence technologies that aren’t fitted to provide customer business outcomes are just…technologies. 1212 Dell Confidential Dell Confidential
Infrastructure Convergence POVUnifying hardware & software to drive efficiency &agility Unify management without Simplify administration compromising domain-level control Automate more to improve Leverage pre- defined efficiency and governance templates Collapse virtual and physical Accelerate time to management for optimal agility market Adopt new infrastructure Adopt innovative architectures to gain efficiency hardware form factors Leverage flexible infrastructure Align needs to best options consumption models
Exploit the paths of infrastructure convergence to maximize efficiency & agility • Combine physical andDescription • Start to benefit from broader efficiency gains virtual admin tasks to by leveraging a common blade infrastructure accelerate time to • Introduce cross-domain operational efficiency application deployment gains Management Convergence End-to-End Convergence Hardware Convergence • Leverage the blade chassis form factor to consolidate your HW infrastructure • Benchmark operational andBenefits • Implement a single tool to consolidate as service delivery well as automate day-to-day admin tasks objectives against historic levels • Adopt full convergence for all new infrastructure and service delivery needs
Reality check Customer Other Vendor vStart Challenge Time to value, ROI, efficiency, data center consolidation Converged infrastructure, ease of management, reduce OpEx Agility and private cloud Virtual desktop, network resiliency, virtualization Unified communications/VOIP There is no single answer for every customer’s need
Change at Dell: Organic and InorganicInvestments Organic Inorganic 1 Next Generation 500 sales specialists, Computing 1,600 engineers, 5 R&D centers Solutions Efficient IT Solutions 2 Intelligent >1000 sales Data specialists, 800 engineers, 5 Management R&D centers 3 >100 sales specialists, Networking > 60 engineers, 1 R&D center 4 Services, >$350M investment in Security & cloud, data center, and new solutions Cloud 5 End-User 100 sales specialists, Computing 1600 engineers16 Confidential
Building on our data center vision Build or acquire IP to Deliver best-in-class Offer public or off- deliver a superior integration when premise cloud customer outcome convergence is solutions as an required element of driving convergence Dell Plug-Ins for vCenter & Systems Center, Dell AIM & BMC Dell Cloud, VIS Creator, Dell Atrium Boomi Deliver the flexibility Continue to apply Continue market to support multiple lessons learned leadership in deployments and from Dell’s DCS/ virtualization management options hyperscale business Extending hypervisor mgt Dell PowerEdge-C, flat platforms with Dell systems IaaS, SaaS, PaaS and managed networking, tiered storage & mgt, best-of-breed hardware crowbar for virtualization17 Dell Confidential
Data Center Modernization Sales PlayTwo approaches to convergenceHolistic convergence supports a greater variety of businessoutcomes Converged infrastructure Dell Convergence Combines Touches every part infrastructure by of IT: infrastructure, adding a siloed VS. ops management, rack apps, and service management Dell supports both approaches
Dell Converged Blade DataCenterAn entire enterprise-class data NEW Converged solutioncenter delivered with the configurationsimplicity, efficiency, and agility ofblade infrastructure Speed deployment & performance Enterprise-class data center in a single chassis, accessed via 2 cables Simplify infrastructure Deploy an Scale storage operations entire data beyond the Deploy, configure, and update center in blade chassis servers with up to 44% less single 10U with the admin time compared to HP chassis* PS6000* Scalable storage outside the * 24 ¼ height M420 servers, 2 PS-M4110 Blade chassis Arrays, and 2 Force10 MXL 10/40 GbE switches (not shown) Exceptional data center efficiency
PowerEdge M420 – World’s smallestblade32 Servers in 10U21 Confidential Platform Marketing Global
vStart 1000 for Private Cloud NEW Compellent/Force10 solution configurationEnterprise class privatecloud infrastructure vStart 50 vStart 100 vStart 200 vStart 1000that enables IT to focuson delivering businessservices Mission critical application platform: scalability, resiliency, and performance Accelerated time-to-value with pre-integrated infrastructure Improved IT responsiveness through highly personalized private, public and desktop Shown with Compellent storage and 12th generation PowerEdge ½ height M620 blade cloud services that leverage servers existing systems and processes
Dell’s integrated approach toinfrastructure managementInfrastructure management delivered via thevirtual machine management console that youalready use today Dell Management Integrations Dell OpenManage Integration for VMware vCenter Suite for Microsoft System Center Server and storage lifecycle management Server and storage lifecycle management for the most common tasks for the most common tasks Dell M1000e Chassis Management Controller (CMC) Chassis infrastructure configuration / N:1 firmware updates to blades / Chassis cloning Dell Repository ManagerSecurely download firmware updates and manage a collection of updates for different workloads
Dell’s Converged InfrastructureManageraka Skyhawk (ETA Oct 2012) The Problem
Introducing “Skyhawk”Dell’s Converged Infrastructure Manager A solution that automatically configures your convergedinfrastructure based on a workload’s infrastructure needs Skyhawk automates Skyhawk simplifies infrastructure on-going management configuration 1. Admin captures workload • Cannot tie workloads to needs in profile infrastructure? 2. To configure infrastructure, Easy. Capture it in a profile admin applies profile • Server Failed? Just move profile. Reduced 3. Auto identifies right downtime resources • Want to add capacity? 4. Automates infrastructure Just clone a profile. Ensure configuration consistency • Need to change settings? Modify profile. No need to touch HW• Improved Operational Efficiency – Accelerated time to value, Delivers consistency, Reduced complexity• Increased Agility – Rapid provisioning, Accelerated recovery, Reduced risk of errors
Skyhawk 1.0 Capabilities OverviewConverged infrastructure manager Profile-based provisioning Rapidly move workloads ensures accuracy and as a response to server consistency failuresProfile Based Workload Provisioning Failover Automatically configure Auto-inventory & health infrastructure and status reporting of significantly reduce discovered elements manual touch points without agents Automated InfrastructurConfiguration e Lifecycle Mgmt Perform common Virtual appliance that infrastructure uses intuitive wizards for configuration and deployment and on-going management tasks from one management console Centralized Easy To Use Management