Techaisle Blog

Dell was always been relevant for small business and education markets but is now in an exalted position to stake its claim within the enterprise segment and the new battleground – the midmarket firms. In this Techaisle Take analysis I cover Dell Technologies’ On Demand offering, Progress Made Real initiative, expanded PCaaS for SMBs, focus on customer advocacy, continued SMB investment, new converged infrastructure PowerOne, Unified workspace solution and channel partner strategy.

Dell Technologies Summit in Austin was a showcase of bold announcements and understated commitments to corporate social good and customer advocacy. Dell has certainly transformed in the last five years. It has moved along a path from a PC company to end-to-end solutions provider to a digital transformation partner to a place where it is driving its own transformation through the power of analytics with a goal of delivering customer success. Dell has catapulted itself into relevancy for the next decade.

In 1984, when Michael Dell founded his namesake company in his college dorm, I was a freshly minted engineering college graduate working through my first job at a tractor manufacturing plant in India. My first interaction with Dell was in early nineties when an India-based firm was awarded a contract manufacturing deal. I was then running the secretariat of a computer manufacturer’s association in India. Since then not only technology has progressed but both the consumers and commercial buyers have evolved. Dell has not only moved with the times but sometimes has been ahead of the curve. One such “ahead of the curve” initiative is “Progress Made Real for 2030” announced at the summit.

Progress Made Real for 2030 stands on four pillars:

1. Advancing sustainability: for example, one-for-one recycling, that is, every product that Dell sells it will recycle an equivalent product
2. Cultivating inclusion: committing to 50 percent of Dell workforce to comprise of women by 2030, 40 percent of managers of people will be women, 25 percent of US workforce will be Hispanic or African American
3. Transforming lives: for example, Dell’s work with Tata Trusts, with a goal to reach 40m under-privileged people from the current 11m
4. Upholding ethics and privacy

Enabled by a combination of pervasive use of technology and vastly-expanded solution options, the technology user and buyer community has become more diverse in both composition and focus. Business decision makers (BDMs) are not content to await IT’s blessing to pursue technology options that align with business needs: an increasingly tech-savvy business user/management community plays an ever-expanding role in assessing technology options, and even in specifying solutions and managing their rollout. At the same time, the solution options themselves have expanded to become more accessible to non-IT staff. Some technologies, such as analytics and IoT, directly address business management questions. Others, notably cloud, provide support and delivery options that give business units the option of avoiding IT oversight. Even core IT functions, such as storage management (especially with respect to Big Data) and security (particularly with regard to cloud and mobility) are reshaped by system requirements imposed by BDM needs. It is not out of place, as an analyst, to say that Dell has been a little late in recognizing and pursuing the shifting patterns. Regardless, Dell has been a believer of technology democratization and has begun a concerted effort to manage technology chaos with a differentiated customer strategy and drive the ability to scale human capacity. These are very lofty and moonshot initiatives. But then Dell is a founder-led company whose founder is skilled at assembling the proverbial ship piece-by-piece and navigating it through uncharted and occasionally choppy waters.

Dell Technologies differentiated customer strategy is built on four key points:

1. Driving social impact with purpose-driven relationships
2. Creating customer advocates for life by honoring customer loyalty and delivering success
3. Making it easy to do business with Dell by executing on basics
4. Unlocking customer value by leading with insights

Dell’s customer advocacy team is constantly analyzing 9.5K social conversations per day, looks at 33K customer verbatims in addition to its 16K sales team members sharing feedback. Dell’s plan to delivering a seamless and simplified customer experience is not very different from recently announced customer lifecycle experience, aka race track, by Cisco. End goals are the same, approaches are slightly different. But the fact that all suppliers are landing at the same end-state is significant on how the technology industry has evolved.

Perhaps the most important announcement at Dell Tech Summit was its On Demand offering. Dell went to great lengths to explain its genesis and development but it is clear that it a direct response to the growing popularity of HPE GreenLake. Regardless of HPE commanding the media-waves Dell has jumped headlong into the as-a-service, post-transactional market with Dell Technologies On Demand Autonomous Infrastructure available via DT Cloud. Dell is prepared to deliver solutions today and at scale. And it is also within reach of midmarket businesses. Key takeaways of Dell’s On Demand solutions are:

1. On-demand, consumption-based and as-a-service solutions for on-prem infrastructure / services is customizable, integrated across the full-stack for Dell's end-to-end portfolio from edge to core to cloud
2. Dell widened the product of their Flex On Demand offerings for PowerEdge servers and their new PowerOne autonomous converged infrastructure solution (announced at Dell Technologies Summit). With this announcement, Dell’s consumption-based on-demand solutions now cover PCs, servers, storage, CI/HCI, IoT, datacenters, networking and data protection. Ideally applicable for firms with a minimum $250K 3-year contract-value but end-points including PCaaS is available for SMBs (at lower committed contract values).
3. Dell knows how to create simplicity within complexity. Businesses can customize and select their on-demand path from:
   1. Payment: Pay As You Grow, Flex On Demand, Data Center Utility
   2. Services: ProSupport, ProDeploy, Managed services
   3. Portfolio: Edge, Endpoint, Core, Cloud
4. On Demand offering provides two options for channel partners to participate:
   1. Referral fee – 7%-10% on committed contract value including tier credit program benefit. Dell owns and manages the customer. The partner still plays an active role in managing the customer relationship. The referral fee model positions the partner to address the customer’s solution needs, and enhance their customer relationship without having to take on the usage and credit risk associated with offering a pay for use solution.
   2. Resell – Partner owns and manages the customer. Allows partner to uplift base usage charge and earn program benefits including rebates, marketing development funds, and tier credit

Pay As You Grow is for committed workloads. The metering coverage in Flex On Demand includes processor, memory, and GB consumed. Data Center Utility adds metering based on VM and per port. The solution is still in its early stages and Dell views this as a journey rather than a destination. But the offering, in early stages, is finding acceptance at many of Dell’s customers. Scalar (a CDW company) has been configuring on-demand solutions with unlimited scalability for major Hollywood studios.

Relative to the cost of conventional hardware and software, on-demand cloud solutions are generally more cost effective than equivalent CAPEX-based on-premise alternatives, and its OPEX-based billing model works well for cash-constrained SMBs and midmarket firms. Cloud’s ‘as-a-Service’ delivery model reduces the need for individual SMBs and midmarket firms to attract and retain specialized IT staff; scale up as the organization grows, and cloud provides SMBs and midmarket firms that are often unable to maintain refresh cycles with ‘always-on’ access to current technology.

SMBs are not being left out from Dell’s strategy. In fact, small and midmarket businesses are two of the fastest growing segments for Dell. Its small business advisory has witnessed tremendous success but the team is not resting on its laurels. It aims to add 100 more small business advisors in the next one year. Each advisor goes through 160 hours of in-person classroom training. Dell has built a progressive hierarchical advisory structure, based on “needs complexity” to help SMBs learn, identify, buy and deploy technology. Small businesses with specific and simple requirements can also use Eva – a chatbot – to help guide through product selection and purchase.

I first used a ThinkPad in 1994 when I was with IDC in Hong Kong and had immediately taken a liking to the distinct red TrackPoint, color and feel of the laptop. I even had a docking station. It served me extremely well during my numerous overseas trips. In 1995, I switched to ThinkPad 701 with the butterfly keyboard. And when I accidentally placed my luggage on the laptop the shattered screen devasted me. I continued to use a ThinkPad till the time I joined Gartner which gave me a non-ThinkPad laptop. In my subsequent jobs I usually requested and received a ThinkPad from my workplaces.

Slightly more than a decade ago when I founded Techaisle I bought a Sony Vaio. It was a big mistake. Within a few months I switched to a ThinkPad Carbon. Why this obsession with ThinkPad? Quality, reliability, elegance.

Since early October I have been using Lenovo’s latest 7th Gen ThinkPad X1 Carbon. The minute I unboxed and picked-up the ThinkPad I realized I was holding a classic yet modern design. Everything from the sharply defined etched grey-red X1 logo on the chassis cover to the rubbery plastic carbon fiber weave with a textured pattern defies description. It is incredibly light, at 2.4 pounds and combined with a thin design at 0.58 inches (14.95mm) with no visible taper gives my shoulder-back combo a much-needed respite. I have found myself frequently using the leather ThinkPad X1 Ultra Sleeve (which delivers a premium feel to the X1 Carbon experience) without the need to carry a backpack when I am within a conference venue. The keyboard travel, although reduced to 1.5mm (from 1.7mm in previous models), to accommodate redefined thinness still provides familiar comfort and feedback for which ThinkPads are known for. The switched placement of Ctrl and Fn keys, as compared to most other keyboards and laptops, does throw me off.

The model that I am using is fully-configured with 16 GB RAM, 512 GB SSD, Intel core i7-8665U CPU 1.90GHz and UHD Graphics 620 with 3840 X 2160 display HDR400 with 500 nits brightness. Lenovo promises 18 hours of battery life for a lower resolution screen but the 4K screen that I am using obviously drains battery fast. Fortunately, Lenovo’s RapidCharge technology charges the X1 Carbon up to 80% within an hour. Lenovo’s “eye care” mode reduces blue light on the screen. Lenovo also has a PrivacyGuard but is not available for 4K screens. The screen does hinge 180 degrees to sit flat on a desk but I have never really found the need to use the capability.

A key evaluation criterion for me is a laptop’s ability to contribute and enhance productivity. The screen resolution enhances the experience for sifting through huge spreadsheets of analytical information, scrolling through rows of survey data, creating data-rich PowerPoint slides, reviewing infographics and working on Power BI dashboards. When I connect the ThinkPad to an external display (Dell UltraSharp 27 Monitor - U2719D) through Lenovo Thunderbolt™ 3 Dock, the productivity and experience are amplified.

ThinkVision M14 (sold separately) is a mobile display for on-the-go productivity. I usually bring it along with me. It easily connects through USB-C, provides a tremendous utility when working on my data spreadsheets and PowerPoints on the road. The ThinkVision M14 is only 0.4mm think and weighs next to nothing and easily slides into already crammed backpack space. And yes, I have also used ThinkVision M14 with a Dell XPS 13 and Dell Latitude 7390 2in1. Even my son has used it for his work and games and brought it with him during his travels.

I may be one of the few who still use the TrackPoint. Right above the touchpad are three mouse buttons to be used in conjunction with the TrackPoint which allow me to fully rest my fingers on the laptop itself without having to repeatedly lift my palms. Although I must say I miss the touchscreen in my ThinkPad X1 Carbon configuration (4K does not have touchscreen).

Lenovo Vantage, an app that keeps the device up and running and allows for custom settings, has grown in stature and capabilities substantially in the last one year. I have enabled WiFi security, Intelligent cooling with Quiet mode, battery charge threshold to prolong battery life and always-on USB to charge even when the computer is in sleep mode or off. To turn on WiFi security I had to enable location tracking, there seems to be no way around it. So far, it has worked well despite some occasional false notifications. The ThinkPad Carbon X1 is quiet and I rarely hear the fans spinning. I am the type of person when my iPhone battery drops to 70 percent, I look for an outlet to charge. Hence, enabling always-on USB has helped me keep my devices (iPhone, AirPods Pro, Bose headphones, Ultraportable Bluetooth speaker, backup power adapters and others) connected and charged. There are more than enough ports - 2 x USB-C, 2 x USB-A and 1 x HDMI - for my obsessive-compulsive need to keep all devices charged and connected.

Needless to say, collaboration is a key aspect of any work, especially in my job profile where most collaboration is video-enabled. Microsoft Teams, WebEx, Zoom, Hangouts and Go-to-meeting are most used. When I am not using headphones or portable Bluetooth speakers for conference calls, the 4 x 360-degree far-field microphones are useful. Nobody has complained to me so far about audio quality. The webcam has had no issues and the included camera shutter is a much-needed bonus as long as I remember to slide open or close.

I must confess that I have not setup Windows Hello - neither fingerprint nor facial recognition.

It is a mistake to compare ThinkPad X1 Carbon Gen 7 with a MacBook. Instead, it should be compared and contrasted with Dell Latitude 7400. But comparison is not the objective of my review. Both are well-positioned and have their defined target market segments. It is however important to note that PC is where work gets done. It is still the centerpiece of business productivity and buying a new laptop is likely to have a more significant impact on productivity than any other technology. Modern PCs deliver more than an incremental improvement in performance and features. ThinkPad X1 Carbon is a modern business laptop that embraces tradition and after so many years still defies description.

Every year or two (or three), a new trend sweeps the IT industry, and breathless coverage asserts that the new phenomenon has arrived fully-shaped to transform technology and/or IT’s role in business strategy. This is, of course, very rarely true. Most trends play out over a long time, and change in technology tends to be incremental rather than revolutionary. For example – it is certainly true that digitalization (and digital transformation) are important issues today, and that they will have a transformative effect on IT and business strategy. But Techaisle research demonstrates, they are a recent highlight in a series of business issues and technology themes that stretch back at least 15 years, from 2003 to 2019.

Key SMB and Midmarket digitalization themes, 2003-2020

As we enter the next decade, it seems that online capabilities and activities are entering a new era. There are still advances to be made in the ‘net’ realm: there is constant pressure to expand the speed of the Internet, enabling it to handle the voracious demands of unstructured content like video, and the rise of IoT and 5G portends a coming tsunami of data from billions of connected devices. However, the key focus of web-based business investment is now less about the ‘net’ and more about the ‘work’: the ways that an increasingly-connected world supports pursuit of previously-unattainable objectives. The most important IT-related development in 2020 will be this focus on connectedness – connected cloud, edge, applications, security, collaboration, workspaces and insights. Internet and the web are the navigation routes that we have been developing since the 1970s; the always-on, everywhere-connected Interwork© platform is the destination that we will be creating in 2020 and for years to come.

This eBook has been written to provide guidance to supply-side management responsible for digitalization strategies that affect sales and marketing of advanced IT solutions to SMBs and midmarket firms. The document is structured into six sections:

1. What’s past is prologue – The Path to Digitalization
2. Closing the gap between business priorities and IT challenges and the rise of digital
3. Business Issues over the years – paving the route to digital transformation
4. The rise of innovation – and digital – as a business focus
5. IT challenges over the years – paving the route to digital transformation
6. What’s future is epilogue: Connected Business

Download the free eBook here

Techaisle has released its annual research infographics on top 10 IT priorities, business issues and IT challenges of SMBs (1-999 employees), midmarket firms (100-999 employees) and small businesses (1-99 employees) for 2019. In its detailed SMB survey Techaisle investigated 21 different technology areas and several technology sub-categories, 23 different IT challenges and 21 different business issues. This is the 9th year of Techaisle’s annual survey research initiative that probes for top business issues, IT priorities and IT challenges. Tracking history provides a fascinating evolution in which new business goals drive new IT priorities and uncover challenges that must be addressed to enable progress on business objectives.

Primary research was conducted among senior IT and business decision makers from Techaisle network of 1.2M B2B IT professionals spread across 30+ countries.

There are some interesting differences in IT priorities as compared to 2018. IoT and VR/AR fell below top 10 (but still within top 15) and replaced by Voice/Digital assistants as well as Open source solutions. Across all regions (US, Europe, Asia/Pacific, Latin America) digital unified workspace and software-defined are becoming a priority for both SMBs and midmarket firms. Security many places within the top 10 IT challenges in different forms – cloud security, mobile device security, data protection/recovery/business continuity – with Cloud security as the top IT challenge.

Global SMB & Midmarket IT spend (excluding telecom services) in 2019 is projected to be US$665B and corresponding cloud spend is expected to be US$115B. Research also found that IT budget growths in 2019 will be the highest in Asia/Pacific (6.2%) and lowest in Latin America (1.8%). While IT budget constraint is not the top challenge within SMBs in the US and Asia/Pacific, it is the top concern in Latin America.

Managing data growth is continuing to pose challenge for SMBs and when probed further Techaisle research found that only 11% of SMBs and 29% of midmarket firms have evidence-driven culture with data-driven decision-making business processes in which data defines requirements or opportunities and management then determines the best option for moving forward. In the US, 17% of small business and 34% of midmarket firms consider themselves to be innovative.

2019 Top 10 SMB business issues, IT priorities, IT challenges