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Dell Opens Line of Business for Hyperscale Datacenters

dellToday Dell announced a new business unit aligned around hyperscale datacenters. The Datacenter Scalable Solutions (DSS) group is designed to meet the specific needs of web tech, telecommunications service providers, hosting companies, oil and gas, and research organizations. These businesses often have high-volume technology needs and supply chain requirements in order to deliver business innovation. With a new operating model built on agile, scalable, and repeatable processes, Dell can now uniquely provide this set of customers with the technology they need, purposefully designed to their specifications, and delivered when they want it.

Dell was the first major server vendor that recognized the unique requirements of the hyperscale market when it introduced DCS in 2007. They are now taking the best practices and learnings from their DCS business and addressing the distinct needs of the space just below the top tier hyperscalers.”

dell_blue_rgbDell was a pioneer in the hyperscale market segment nearly eight years ago when it created Data Center Solutions (DCS) to design and build solutions tailored for massive-scale datacenter environments. DCS continues to serve the hyperscale market with fully custom and tailored solutions. Today, there’s a growing market of businesses just below the hyperscale space in size that are increasingly expressing similar needs in how they buy and build datacenter capabilities. This segment is growing three times faster than the traditional x86 server market and represents a $6 billion total addressable market(1).

Dell addresses this segment of web tech, hosting companies, telecommunications service providers, oil and gas, and research organizations differently from others in the IT industry. With a new operating model that leverages the high quality and stability of Dell’s enterprise and DCS portfolio, along with its global support and supply chain capabilities, Dell DSS is able to design optimized solutions to meet customers’ precise needs.

Dell was the first major server vendor that recognized the unique requirements of the hyperscale market when it introduced DCS in 2007. They are now taking the best practices and learnings from their DCS business and addressing the distinct needs of the space just below the top tier hyperscalers,” said Matt Eastwood, senior vice president, IDC. “As a private company, Dell continues to make long-term strategic customer centric investments and they are proving their new operating model is dynamic, thoughtful and unique in the industry.”

Giving customers what they want

Web tech, hosting companies, telecommunications service providers, oil and gas, and research organizations often require specific technologies or deployment models to address their unique business challenges and application needs. For example, one company might have software requirements in order to better manage data and provide competitive insights. Another might choose to install a non-traditional operating system and another might need thousands of additional servers around the world by the end of the week to meet unplanned demand. With a fast and nimble operating model that builds on Dell’s deep experience in understanding customers’ challenges, Dell DSS is able to meet these high-volume needs and create differentiated and optimized offerings for customers. For example:

  • A global service provider focused on providing end-customers with the quickest response time to data has an extensive test matrix to determine what configurations are optimized for its workloads. These configurations are not always found in products readily available on the market. Whereas other IT vendors in the industry could not meet their requirements, Dell DSS was able to bring its global supply chain capabilities and experience building fully-custom solutions to build the exact infrastructure the customer required.
  • An oil and gas customer needed to maximize performance while minimizing power consumption for their seismic processing workload. In an industry where every second gained is a competitive advantage, the customer wanted an alternate-cooling solution built on Dell infrastructure. Dell DSS was able to collaborate with the customer to provide a solution that meets their needs, while being fully tested and backed by Dell’s warranty and support.

In addition to supply chain optimizations and custom configurations, Dell DSS is able to quickly build new system designs for this market. Dell will introduce its first DSS-branded products later this fall.

Dell Datacenter Scalable Solutions is a prime example of how Dell, as a private company, is able to be more nimble, make faster decisions and – most importantly – drive innovation on behalf of its customers,” said Ashley Gorakhpurwalla, vice president and general manager, Server Solutions, Dell. “While others in the IT industry have been focused on marketing hype or reducing capex costs only, we’ve created a new operating model that is centered around flexibility. DSS is about understanding customers’ goals and enabling them to achieve those objectives by giving them purpose-built solutions that are designed when and how they want it.”

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