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    Wednesday
    Jul182012

    Michael Dell talks about Servers and China which gives you an idea of data centers

    Michael Dell had an interview with Fortune magazine that includes a transcript.

    Transcript: Michael Dell addresses Dell's future

    July 17, 2012: 3:55 PM ET

     

    Michael Dell, Chairman and CEO, Dell, was interviewed by Fortune's Andy Serwer at Brainstorm Tech in Aspen. They talked about the PC market, the enterprise, China, and Apple. 

    In the interview here was the part that gets my attention.

    ANDY SERWER:  Michael, what about your business in China?  What is that like and are you feeling the effects of any slowdown there?

    MICHAEL DELL:  It's on the order of a $5-billion business, so it's a sizeable business for us.  It's the largest business outside the United States.  I can tell you that there are some challenges in China right now.

    ANDY SERWER:  Be more specific, it's a really important topic I think.

    MICHAEL DELL:  I'm going to be there in early September with our board of directors.  I'll give you a better update after that.  But I think, generally speaking, the demand for technology in China is tremendous.  You know, we think about 60 percent of the Chinese Internet runs on Dell servers, and so we have a huge success in selling our infrastructure solutions to those Chinese companies.  Anybody who's doing anything mission critical like stock exchange, a bank, a power grid, you know, those are our customers.  You know, we're designing the IT architecture for, you know, a lot of the key state-owned enterprises with our services group.  And we've acquired Bearingpoint to be able to kind of fuel that.

    So, our business is fully integrated in China across all aspects, and it's 100 percent Dell owned.  So, we love the business, it's an important business.  And emerging markets are a big deal for us because the next billion users are coming from these countries and the next ten.

    Data Centers are not specifically mentioned.  But, here is another piece of data.  Here are 15 Dell data center engineers who were at 7x24 Exchange who later had a group offsite.  There are some top people recruited from other companies.  Most of these guys were brand new to Dell working on a new data center service.
    NewImage
     
    HP and IBM have also been focusing on China data center projects.  It is tough to know who is winning in China, but Michael Dell is confident he has 60% of the server business. 
     
     
    One of Dell's customers in China is Tencent.

    ANDY SERWER:  I'm digressing, Michael.  Maybe it's a flashback.  In any event.  I want to know what your relationship with the consumer is.  What do you make for the consumer and how important is it?  And how much does it tie into the enterprise from your perspective?

    MICHAEL DELL:  It absolutely ties in, and you're right, the consumerization of IT is a big deal.  And the growth in mobility and in smart phones and tablets is absolutely an enormous part of what's going on in IT.  And it has all sorts of implications across the whole, you know, sort of ecosystem.

    So, you know, I'll give you an example.  One of our customers is a company in China called Tencent.  And Tencent has like 650 million customers and they're all people who use phones.

    Here is a Dell Power and Cooling web page.

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