Showing posts with label North America. Show all posts
Showing posts with label North America. Show all posts

Monday, 9 September 2013

Dell Inc.: Things You Ought To Know



Dell is unique and unencumbered by a legacy of older technology and their solutions were born in the microprocessor age and this gives them the ability to build scale-out solutions that are based on standard architectures. And this focus is helping them to allow their customers to transform in a very agile way and an affordable way and build powerful solutions that can drive organizations forward.

Dell also operates in 180 countries around the world. It has mission critical support in those 180 countries. So who are we talking about, who are the customers of Dell? Well, it's 98% of the Fortune 500 companies out there; over 10 million small businesses rely on Dell, hundreds of thousands of students and teachers in hundreds of thousands of classrooms. This is a significant customer of Dell.

A great example is newly announced product in China, PowerEdge T20 server. It's ideal for small businesses combining large internal storage and performance capability in a very small quiet chassis, it's part of Dell’s 12th generation of PowerEdge server lines. Dell has been doing this for quite some time and is now on 12th generation and is gaining share in the Server sector for sure. Dell now has number one share in North America, number one share in China, number one share in Asia-Pacific and Japan and is approaching number one share worldwide.

Now, what's very interesting you see happening in the data center is the rise of kind of the software defined data center where the server is increasingly becoming the center of the data center as Storage, Networking, Security and other things that go on in the data center are essentially becoming applications that are running inside virtual machines and that makes Dell's leadership in the server sector, all the more important.

Michael Dell said, ‘We are working to dramatically expand our capabilities across the other areas like networking and storage’. This week, Dell introduced their most advanced networking switch, S6000, it consumes 50% less power and doubles the density. It's an ideal switch for a highly virtualized environment and Dell has great standalone offerings at networking and storage and servers, the real innovation comes when you combine all of these together.

‘This convergence when you add new technologies like flash memory combine with this whole idea of highly virtualized environment builds a very modern agile data center with high levels of efficiency and that's a major, major focus for us’, said Michael Dell.

So, Dell is launching a large scale initiative to localize its offerings for the Chinese markets, bringing its system's management, security, information management solutions. So, customers can really take advantage of these and one of the examples is one of their latest converged platforms, Vertex product which combines storage, networking and servers all in one very small and a very affordable package.

So the next area for Dell is Connect and Connect addresses this enormous growth in mobility and they see enormous number of new devices from smartphones to tablets to wearable computing to all sorts of sensors, capturing and pooling data and creating data. And addressing this concept of mobility from the device through to the data center and to the cloud and they increasingly live in what is absolutely a multi-device world.

It seems like nobody has one or two devices anymore; now we all have many, many devices and the PC is certainly evolving. Dell has the desktop PC, the virtual PC, have a tablet PC, notebooks and workstations and many different types.

Dell announced in China the most recent addition to their Latitude family, the 7000, 5000 and 3000 ultrabooks for their business in China and are brining leading security, manageability, reliability, touch display to these products at a very affordable price point.

Dell is also moving aggressively into commercial tablets. Dell’s Latitude 10 runs Windows 8, runs Microsoft Office and it docks to become a fully configured high-performance workstation. Now there are hundreds and millions of PCs sold every year, the installed base of PC is about 1.5 billion and overwhelmingly in offices across the city in Beijing and across other cities around the world, PCs are still integral to how business gets done.

New capabilities building around Big Data Analytics and Cloud Data Integration:

You don't just want Big Data, you want big results from your Big Data and you're going to hear about capabilities that Dell has to help you do this. You're also going to hear about vertical solutions that Dell has been building like their healthcare cloud.

Today, Dell has built about a $1 billion IT security business, helping its customers secure and protect. They have embedded solutions at the device level like secure BIOS and data encryption and has whole capability around detecting and protecting, so dealing with malware, intrusion detection and prevention, next generation firewalls of all sizes including carrier grade, next generation firewalls, secure socket layer VPN solutions and email security.

Mr. Dell said, ‘Today we see about 50 billion security events per day and we're protecting tens of trillions of dollars of assets for the largest banks, financial services firms, e-commerce firms that are transacting online and we'd be building our team, our talent, our infrastructure, our production capacity, our supply chain to make Dell a true partner for customers in China and across the region’.

Out of the 110,000 people at Dell, over 40,000 of them are in Asia-Pacific and Japan and four manufacturing centers; Chennai, Panang, Xiamen and just last June a few months ago, inaugurated and opened newest factory in Chengdu.

Michael Dell concluded by saying that Across Transform, Connect, Inform and Protect, our focus is really on harnessing the disruptive forces that you face and bringing those as an advantage for your organization.



Thursday, 5 September 2013

Waiting eagerly, the Troublesome Blackberry



‘We don't have to be all things to all people in our market’, said Thorsten Heins, President and CEO, BlackBerry in Q1, no wonder the company wants to sell itself before November falls.

The recent news of Nokia opens its gates to Microsoft created a lot of buzz in the market which left Blackberry eagerly waiting for a prospective buyer. The present situation of Blackberry was quite anticipated as it had opted to raise over a billion dollar by reducing its headcount to build its own Ecosystem. 

Thorsten Heins led Blackberry into a new direction which seemed promising but nothing could keep the company afloat. The fact that Mr. Heins failed to lift up the company, now all eyes are on him if he can at least do the job of selling the company, and if he does, it would be the most profitable thing he might have ever done in quite some time.

At current prices, Bloomberg estimates Heins' compensation package could be worth approximately $44 million if ousted after sale, plus bonus benefits and retirement savings and equity awards may bring in a couple more million for him, the total figure could go as much as $55.6 million. He would be pretty much desperate to look out for a prospective buyer to take in the troublesome Blackberry.

Fairfax Financial and its Chief Executive, Prem Watsa, which hold approximately 11 per cent of BlackBerry, are considered among possible buyers. Watsa resigned from the BlackBerry Board due to potential conflicts of interest.


Blackberry’s worth:

·  By the time this year ends, BlackBerry's pile of cash could be as much as $2.6 billion, which is quite low.
·  Also, if one considers their patents and intellectual property, it could be between $1 billion apiece, or $4 billion in total.
·  The Enterprise Data Network should be about $1.2 billion worth to its highest bidder; and additional software can be at $1.5 billion but, minus the $800 million which is an estimated figure of shuttering its handset business.
·  In total, the Company could be worth between the range of $5.5 billion, or $10.50 per share, or as much as $8.5 billion if broken up.

Key interesting highlights of Blackberry so far:

·  Three of their four regions returned to sequential revenue growth as BlackBerry 10 continues its roll out; Europe, Middle East and Africa their largest regions, represented 43% of revenue in Q1 and was up 9%, North America represented 25% of revenue and was up 30%, Asia Pacific represented 17% of revenue and grew 35%.
·  Blackberry shipped 6.8 million smartphones in the first quarter compared to 6 million in the fourth quarter which represented a 13% increase. Approximately 40% of these devices were BlackBerry 10 devices.
·  BlackBerry 10 is now available across 147 countries including the United States and has been an effective launch product to showcase the renewed and re-engineered BlackBerry 10 experience to both consumers and enterprises.
·  BlackBerry 10 QWERTY devices started its rollout late in the first quarter and with over 320 carrier acceptances completed today.
·  Q10 is now available in 96 countries including the U.S. with 50 more countries expected to launch within Q2.
·  Secure Work Space offers an idea of BYOD mobile security solution providing organization the flexibility to embrace BYOD on multiple platforms without sacrificing security.
·  60% of BlackBerry Fortune 500 customers have already ordered, downloaded or installed BES 10.
·  Generated cash flow from operations of $630 million in Q1 and ended Q1 with $3.1 billion in cash, highest cash position in the past three years.
·  Revenue for the first quarter fiscal 2014 was 3.1 billion, up 15% from the fourth quarter and up approximately 9% from one year ago.
·  Looking at their revenue mix, hardware revenues grew by 33% when compared to the fourth quarter and was approximately $2.2 billion.
·  Service revenue was approximately $794 million or 26% of revenue and was down $153 million or 16% from the fourth quarter. 

Now everyone's guessing who would be the one to acquire Blackberry, the news can come out in the near or not too distant future. 


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