Perspective: Dell's new cloud computing business acquisition in Boomi
Source: Frost & Sullivan , Author: Lindsey McDonald
Posted: Thu November 4, 2010 3:57 pm

INTERNATIONAL. The recently announced acquisition by Dell is another sign of the company's strategy to reposition itself within the rapidly changing dynamics that characterise today's IT industry.

It is clear that to achieve sustainable success in the market, companies have to be agile in their approach to the market. This certainly seems to be the objective Dell is trying to achieve with its announcement that it will enter the areas of cloud computing and the tablet market. Both of these terms are currently causing major hype.

Dell has announced that it will release various tablet models into the market next year and while this does put it in the position of a relative latecomer to this market, the hope is that the vendor will introduce a more advanced option into the market. Of particular interest to many potential tablet users is the inclusion of a USB port and the ability to support Flash - two aspects that are currently lacking from the market.

The manufacturer has also announced that it will use Windows as its operating system of choice - which could mean increased support from Microsoft that currently has almost no presence in the tablet space. Tablets are already very popular in the Middle East, but there is now hope that these devices will be tailored for business users as well in future, instead of the current focus only on the consumer. Dell's timely entrance into this particular market segment

The acquisition of a company specialised in cloud computing can be seen as an indication of the importance of this method of service delivery to the market. While there is still a lot of hype surrounding this term, it is clear that it is more than just an industry cacophony and both enterprise and SMME clients have seen the value of cloud computing. Dell's move into this space signals an industry wide trend that has seen vendors manouevering to provide services into greater portions of the industry value chain.

The acquisition of Boomi should assist the company in quickly assimilating cloud computing techniques into the manner in which it manufactures its products and offers services. In addition, Frost & Sullivan believes that this is an indication of Dell's strategy to target the enterprise sector to a greater extent.

As companies move from a CAPEX to an OPEX-based model, the ability to offer services and particularly through the cloud - will become ever more important to the long-term viability of vendors such as Dell.

Notes. Perspective by Lindsey McDonald, Consultant, Information & Communication Technologies Practice, MENA, Frost & Sullivan.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership.  Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.  

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