Dell creates new server division for ‘2nd-tier’ hyperscale customers

Dell has formed a new business unit to go after the “second tier” of hyperscale customers — those with similar needs to those of Google and Facebook but who aren’t quite as massive.

Sourced through Scoop.it from: www.pcworld.co.nz

The Dell Datacenter Scaleable Solutions (DSS) group, announced Monday, will work with companies in fields like online services, oil and gas exploration, research, cloud hosting and telecommunications.

Similar to the big hyperscale players, many of those companies deploy huge volumes of x86 server hardware, and the performance of their IT is core to their business.  “These companies are not quite hyperscale but nonetheless are massive in scale and growing rapidly,” said Brian Humphries, Dell president for enterprise solutions sales and strategy.  They have similar hardware needs to the Googles and Baidus of the world but typically don’t have massive internal engineering organizations with the know-how to design their own servers.   –  DSS is about the delivery model as much as the products. These fast growing companies experience spikes in demand and sometimes need extra capacity in a hurry, and Dell says it will be able to deliver thousands of servers at short notice when needed — presumably with an extra delivery fee attached.  Dell estimates the mainstream enterprise server market to be worth about $40 billion a year, the top-tier hyperscale market to be worth $9 billion, and the second tier hyperscale market to be worth $7 billion.   Dell completed a tough battle to make itself a private company two years ago, making it hard to know how its business is performing financially. But according to market share figures from IDC, it’s doing well. Dell was number two in the worldwide server market last quarter, with 18 percent of server revenue, behind HP’s 25 percent. Dell grew faster than HP, however, and could well benefit from disruption at HP when it breaks into two companies this year.

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