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T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
TBR EVENT PERSPECTIVE
Dell Software’s success depends on
the speed of integration and
midmarket adoption
Dell Software — The Power to Do More:
Accelerating Results
San Francisco, April 24, 2013
Authors:
Stuart Williams, Software and Cloud Practice Director; Patrick Heffernan, Professional Services Practice Senior
Analyst; and Jillian Mirandi, Software and Cloud Analyst
([email protected])
Impact and Opportunities:
The midmarket presents the greatest opportunity for Dell Software to drive adoption ahead
of competitors
With no legacy software business to protect, and a midmarket presence, acquisition and integration
strategy, the new Dell Software division enjoys an edge over enterprise software vendors IBM, Microsoft
and HP. With the IT market changing from on-premises, static IT environments to dynamic, cloud-driven
connected environments, Dell’s direct approach to midmarket businesses (including cloud-based
technology and Dell’s robust services arm) will appeal to vendors looking to implement new IT strategies
as opposed to customers purchasing line-items. Both Dell and Quest Software built strong businesses in
the midmarket, which gave Dell Software permission to play in the space ahead of competitors IBM and
HP. Microsoft also has a strong midmarket presence, but lacks the breadth of Dell’s portfolio. TBR’s
research indicates the midmarket is adopting cloud-based technology faster than the enterprise space,
making the midmarket Dell’s greatest opportunity.
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TBR Perspective:
A software business is new to Dell; but it is built from effective, tested technologies and a
highly competent team that will drive revenue gains
Dell created a multibillion opportunity for itself through Dell Software; however, Dell must take certain
steps to capitalize on this opportunity. Dell Software must integrate its acquired products with each
other, and with Dell hardware and services. Next, Dell must create a unified culture, vision and strategy
road map to hit its 2016 revenue goal of $5 billion. Finally, a dedicated software team needs to be
trained, a support team needs to be built out and evidence of customer success needs to be publically
marketed.
TBR believes Dell Software has the IP and team to do this — but the speed of full integration remains
unknown. John Swainson, president of Dell Software, has experience (from CA Technologies and IBM),
integrating acquisitions, making them work together and then bundling them into solutions. Dell has full
confidence in Swainson as well as deep pockets and some time away from the public eye to focus on the
success of Dell Software. TBR believes it will take up to five years for Dell Software to fully emerge and
become a mature line of business for Dell and the market.
Dell Software is takings steps toward offering a slimmed down, targeted set of solutions around four key
trends: security, mobility, big data and cloud. Dell Software is addressing these trends with solutions in
security (SecureWorks, SonicWall, Credant and Quest), systems management (Quest, Wyse, KACE and
AppAssure), information management (Quest Toad and Toad Business Intelligence [BI] Suite, Boomi and
Dell Quickstart Data Warehouse Appliance) and BI analytics (Quest Kitenga).
Event Perspective:
Dell Software’s message is clear: It will go to market by addressing security, mobility, big data
and cloud
The Dell Software event on April 24 started with an introduction from Dell Software’s Vice President and
Global Head of Marketing Joanne Moretti. Moretti gave a brief overview of the event schedule and
introduced Swainson. Swainson highlighted how far Dell Software has come in the past year, stating the
business generated $1.5 billion in revenue in 2012 ($1 billion driven from Quest, SonicWall and
SecureWorks) and employed 6,000 people, up from $100 million in revenue and 500 employees when
Swainson started at Dell Software in February 2012.
Swainson emphasized how Dell Software is addressing security, mobility, big data and cloud. The
business is still in the process of weaving and integrating its many acquired technologies, but to date is
going to market with the individual offerings as it reorganizes. We believe that Dell Software will spend
2013 simplifying and integrating its portfolio, and we expect new solutions will be rolled out closer to
2014.
At the event Tom Kendra, vice president and general manager of Systems Management (Dell Software
division), and Doug Schmitt, vice president of Global Support Services (Dell Services division), echoed
Swainson’s message of addressing market-changing trends. Jason Thomas, CIO and IT director of Green
Clinic, offered a customer testimonial as the last speaker of the event. Thomas explained how he uses
Dell Software to ease business pain points and to help his management team succeed. Customer
testimonials, like Thomas’, from the midmarket and enterprise will help Dell Software further distribute
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its message in the marketplace. TBR believes Dell can cement its position in software by capitalizing on
the opportunity in the midmarket.
Technology Business Research, Inc. is a leading independent technology market research and consulting firm
specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal
and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and
business intelligence in a format that is uniquely tailored to clients’ needs. TBR analysts are available to further
address client-specific issues or information needs on an inquiry or proprietary consulting basis.
TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.
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