Dell Continues With Software Makeover While on Cloud Buying Spree

Sara Cunningham May 9, 2013 0


Michael Dell, the CEO and founder of a company of the same surname, is on the threshold of a buyout which will make the public company a private one. However, this will not alter the company’s plan of transforming itself from a hardware vendor to a dealer of cloud and software services.

Dell Continues with Software Makeover while on Cloud Buying Spree 2

Dell’s Deal

Dell announced last Monday that the company will buy Enstratius, a cloud management company and also formerly recognized as EnStratus. However, the terms of the contract were not revealed. With this deal, the cloud company aims to create a single platform which could manage the usage of several cloud services at once. It can be utilized with public services such as the one hosted by Rackspace or Amazon. There are also private clouds created with your own data by the use of tools such as OpenStack. Furthermore, it can also handle “hybrid clouds” which involves both public and private services.

Aside from providing tools for management, security, compliance and automation, the company will also provide algorithmic analysis which can be applied for optimizing the clouds. Naturally, this comes with a price and performance.


The Dell’s Cloud Team

This development may sound great but competitors such as Cloudscaling and RightScale would never bulge. Nevertheless, Enstratius got same aces. The company has profile talent which includes John Willis, a co-author of DevOps Cookbook, and James Urquhart, the former czar of Cisco cloud. The question now is whether or not the Enstratius team will work together with Dell’s Round Rock control center. However, Dell did not yield a response surrounding the issue.

This acquisition is crucial for the company. Just like HP, Dell is making its way to the business of enterprise services and software, leaving the PC market behind.

The Cloud Buying Spree

HP and Dell even fought for a public bidding for 3PAR, a storage company, in 2010. After a severe struggle, HP ultimately won. Ever since then, Dell has continued with a buying spree. The company bought Quest (a database technology company), Compellent (a storage company), RNA Networks (a software-based networking company), Boomi (cloud integration company Boomi) and several others. With this spree, Dell launched Project Fast Paas, a new cloud service based on an opens source Cloud Foundry platform by VMware.

This new path pushed Dell to make the company private. This takes time and the public shareholders may lose patience.

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