Techaisle Blog

Candid conversation with Dell Cloud-Client Computing chief strategist

Jeff McNaught, Executive Director & Chief Strategy Officer, Dell Cloud Client-Computing and co-inventor of Wyse thin client had a candid conversation with Techaisle on his new product initiatives, focus on security, building solutions for small and medium businesses and renewed attention to channel partners. Jeff is deeply involved in software solutions which includes partner software - Citrix, Microsoft and VMware and is responsible for the cloud-client business which includes devices that Dell build’s exclusively for Citrix or VMware as well as new products and software security offerings. One of his major new initiatives includes simplifying and securing virtual workspaces better than anyone else.

Dell VDI converging on security, cost, complexity and channels

Based on extensive primary research with SMBs and the channel partners, Techaisle forecasts the US SMB VDI market to be US$13 billion in 2020 as VDI penetration increases to 34 percent from the current 26 percent and an increase in number of seats from users who have already deployed VDI. Most of the midmarket firms that have invested in VDI are still experimenting with the technology, and most small businesses are still several years away from even this level of preliminary adoption.

The allure of VDI is clear – but the technology itself and the path to realizing its benefits is still mysterious to many small and midmarket businesses. Techaisle research shows that there is a need for VDI vendors to embark on a messaging exercise that includes - real-world examples of successful deployment of VDI, ease of VDI implementation with the least pain for SMBs & simplification of understanding VDI technology by removing fear and complexity.

Over the last two years Dell has been trying to build a momentum to remove the mystery and reduce deployment complexity. Along the way it has had more successes than missteps and it seems that Dell has reached a stage where it reasonably understands the needs of the end-customers and how to work with channel partners to win business and deploy solutions. Dell has architected multiple VDI solution delivery models for SMBs of all sizes and levels of technology adoption.

Techaisle’s detailed survey on Hybrid Cloud Adoption trends covering small, midmarket and enterprise firms shows that although Amazon AWS has established its initial presence within the US businesses, Microsoft Azure is quickly becoming the cloud platform of choice.

Microsoft Azure, a public cloud computing platform, is a growing collection of integrated cloud services that includes analytics, computing, database, mobile, networking, storage and web. Microsoft Azure initially focused strictly on PaaS but has now entered into IaaS market and launched a technical preview of Azure Stack, a platform designed to allow business to deploy an on-premise private cloud and manage a hybrid cloud environment. Microsoft Azure offers Hyper­-V-­virtualized multi-tenant compute with multi-tenant storage along with many additional IaaS and PaaS capabilities, including object storage and a CDN, Azure Marketplace which offers various third party software and services and Azure ExpressRoute that meets the colocation needs of various small and medium businesses.

The respondents for the survey were CIOs, CSOs, CTOs, VP of IT, Director of IT, Senior manager of IT as well as key business decision makers responsible or influential in adopting cloud platforms within their organizations.

Businesses cited many different reasons as to why Microsoft Azure is becoming a platform of choice.

Data from Techaisle’s study channel partners (research analysis documented in Techaisle’s series of reports either delivered individually or as Channel Partner Research Annual subscription service) tell fascinating stories. Excerpt from the specific study of 650 US channel partners selling managed services, based on Techaisle’s database of over 250,000 partners, shows that the sales cycle length varies not only by line of business, but also by expertise levels:

• Cloud provider channel, on average takes 2 weeks longer in its sales cycle as a cloud provider channel
• Systems Integrators’ average sales cycle is ~1.5X of VARs because of complexity of SI’s engagement with an SMB. VARs, are often selling products into existing accounts, have relatively short sales cycles, while SIs, who are positioning complex solutions, have longer sales cycles than other channel businesses
• Even a consultant who is usually familiar to an SMB organization has to prove that they are the right partner and it involves building a plan and showcasing why their advice and solution would be ideal for SMBs

More fascinating are the four charts below.

Intrinsic to positioning any IT-enabled solution is an understanding of the benefits that the customer anticipates obtaining from deployment of the technology. Buyers need to understand how the solution helps them to increase revenues, cut costs, improve efficiency or otherwise enhance shareholder value; vendors need to be able to position their offerings as a means to achieving these objectives.

While there is a close relationship between “analytics” and “Big Data” – and they are often conflated in the press – the two technologies follow somewhat different paths into SMB user environments. Techaisle research has found that analytics solutions tend to be driven by BDMs – business users looking for better ways of approaching high-priority business issues. In some cases, this requires access to vast quantities of high-velocity, variegated sources, which in turn demands a Big Data solution – but in contrast to analytics adoption, Big Data initiatives rely heavily on IT for implementation and ongoing management, and represents a solution area that requires collaboration between BDMs and ITDMs.

While SMB Big Data buyers view support for (predictive) analytics as their top acquisition driver, they also have distinct needs and preferences that suppliers must consider in building a sales and marketing strategy.