New Dell Division to Sell Hyperscale-Style Data Center Gear to Not-Quite-Hyperscale Companies
Dell CEO Michael Dell speaking at a conference in 2013 (Photo by Justin Sullivan/Getty Images)

New Dell Division to Sell Hyperscale-Style Data Center Gear to Not-Quite-Hyperscale Companies

New division will address market of business that is just below the hyperscale space in size

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This article originally appeared at The WHIR

Dell will introduce a product line later this fall targeted specifically customers that want hyperscale-style data center infrastructure but who aren't hyperscale operators themselves. Called Datacenter Scalable Solutions, the division will be within Dell's Enterprise Solutions organization and will address the market of business that is just below the hyperscale space in size.

Dell said that this segment is growing three times faster than the traditional x86 server market, and that these types of businesses, including telecommunication companies, hosting providers, oil and gas and research organizations, require “semi-custom solutions.” Dell DSS will new design new systems for this market, while also offering supply chain optimizations and custom configurations.

“Dell was the first major server vendor that recognized the unique requirements of the hyperscale market when it introduced DCS in 2007. They are now taking the best practices and learnings from their DCS business and addressing the distinct needs of the space just below the top tier hyperscalers,” said Matt Eastwood, senior vice president, IDC. “As a private company, Dell continues to make long-term strategic customer centric investments and they are proving their new operating model is dynamic, thoughtful and unique in the industry.”

Last year, Dell competitor HP partnered with Foxconn to develop servers targeted for the huge cloud builders, according to a report by the WHIR’s sister site DataCenterKnowledge. A report in Q1 2014 by IDC last year showed that HP led the x86 market with 29.6 revenue share and Dell had 22 percent.

“Dell Datacenter Scalable Solutions is a prime example of how Dell, as a private company, is able to be more nimble, make faster decisions and – most importantly – drive innovation on behalf of its customers,” said Ashley Gorakhpurwalla, vice president and general manager, Server Solutions, Dell. “While others in the IT industry have been focused on marketing hype or reducing capex costs only, we’ve created a new operating model that is centered around flexibility. DSS is about understanding customers’ goals and enabling them to achieve those objectives by giving them purpose-built solutions that are designed when and how they want it.”

Dell is also providing a range of financing options through its Dell Financial Servicesarm.

Last month, Dell added support for Windows Azure Pack and enhanced support forMicrosoft Azure to its cloud management software.

This first ran at http://www.thewhir.com/web-hosting-news/dell-forms-new-line-of-business-for-web-hosts-telecommunications-service-providers

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