Dell Transition Cloud Services: Discard public cloud dominance only hardware is preserved

Dell is making a big adjustment to its cloud services strategy. Yesterday, Dell's China side confirmed to the first financial daily that Dell would provide its clients with public cloud services through partners, and that it would not comment on certain reports that Dell had issued job cuts for the public cloud business.

Dell's statement shows that the Cloud Partnership program currently has three initial partners in North America, joyent a company that delivers high-performance cloud computing, Scalemaltrixt and ZeroLag two small infrastructure, or service (IaaS) vendors. Dell's partners will continue to grow in the future, said Nnamdi Orakwue, vice president of cloud computing.

Earlier this month, Dell's global Business Enterprise Market development Executive Director, Anthony Giulio, said in an interview with our correspondent that we could provide technology for companies that are developing private cloud, or joint partners to provide cloud solutions. For example, to provide Chinese customers with online backup opportunities, such as the purchase of notebook customers, they can always through Dell's services for cloud backup, or for small enterprises to provide them with remote management.

But Dell's collaboration is more like Dell's device for a real cloud-computing service provider, which Dell does not dominate in a way that is tantamount to abandoning the public cloud computing business and simply retaining the hardware business.

However, Dell has long claimed to be transforming itself into an enterprise focused on delivering integrated enterprise-class solutions, and if the public cloud is stopped and relies entirely on partners, the transition to the solution seems detrimental.

In fact, Dell's original goal was to use the open source cloud infrastructure platform OpenStack Open public cloud services, to counter the services of Amazon AWS, HP and Google.

But now, because the public cloud is mainly cheap to provide attractive services to users to create new business value. As a result, a large amount of initial capital and resource input is needed in the public cloud services sector, which is a bit of a struggle for Dell, which is financially ill and is privatizing.

In the first quarter of fiscal year 2014, Dell's revenue was $14.074 billion, down 2% from $14.422 billion a year earlier, with a net profit of only 130 million dollars, down 635 million from the same period last year. In a continuing slump, Dell is trying to break through privatisation, but the prospect of a takeover of Blackstone and some opposition from investors has made Dell's privatisation prospects unclear.

Some analysts believe that in the public cloud area, Dell will inevitably compete with some service provider partners. Turning to the private cloud, Dell enables suppliers to use the company's technology and still has cloud computing products focused on a specific vertical industry that enables service providers to support the Dell-branded cloud by providing software and hardware capabilities.

However, according to a recent IDC survey, corporate IT departments prefer to use "hybrid" cloud computing, which combines private and public clouds, so the two cloud-computing future cannot be less.

(Responsible editor: The good of the Legacy)