IPVMU Certified | 10/12/15 12:12pm
I was under the mistaken impression Dell had bought or merged wtih EMC a long time ago. But we don't use them and haven't run into security systems on Dell products in our neck of the woods except for customer viewing stations.
Very interesting article on the topic today. I thought it could help enlight the discussion.
This might impact the surveillance or the market strategy but not directly. Cisco is using their servers and the EMC storage along with VMware in their project including the surveillance projects. I think in the long term Dell will break this relationship.
Interesting article: How Dell’s Weak Performance Could Affect Its $67 Billion EMC Deal
Net/net: Dell is unprofitable and becoming more so.
A few key excerpts:
For H2 2015, "Dell had a net loss of $768 million, compared with a $570 million loss in the equivalent period a year earlier. Revenue was also down, falling to $27.5 billion in the latest six months, from $29.5 billion in the year-earlier period. The company’s gross margin — or revenue minus the costs related to making its products and delivering its services, expressed as percentage of revenue — declined to 17.1 percent in the first six months of the most recent fiscal year, from 18 percent in the same period in the previous fiscal year."
"Although Dell is making a loss in its income statement, it is generating positive cash flows from its operations. Still, the $733 million generated in the first six months of the latest fiscal year is well below the $1.16 billion recorded in the same period a year earlier. And in the latest period, Dell appears to have squeezed more cash out of sources than it might be able to repeat, such as by pressing its customers to pay more quickly."
Can EMC help turn this around? Will they drag each other down?
Far tougher business even than video surveillance :)
There's quite a few comments here (and the industry in general) about the 'race to the bottom' and while I can't comment on the merger (I'm an EMC employee), I will say that EMC sells more $ worth of storage into pure video surveillance opportunities (that is, the storage sale isn't a carryover from some other 'workload' the customer is using EMC for) than what most of the biggest VMS's make in yearly revenue. Further, this business continues to grow.
As to the 'dying' nature of EMC or other large IT companies, I think it goes without saying that there is a clear trend in IT that sees more use of cloud technologies and less use of 'on premise' technology. Again, I can't comment on anything Dell related, but for EMC's part, we have introducted new technology that actually facilitates this move, despite the potential for cutting into our traditional lines of business. I'm not saying that EMC or other large companies are the future of IT, but I think that declaring these companies the 'walking dead' is a touch dramatic.
IPVMU Certified | 10/15/15 12:20pm
I don't remember if I first saw this article on IPVM or not,
How the 'value trap' squeezes Windows PC makers' revenues and profits
But it's a good one on the shrinking profitability of the large computer makers, and I don't think too far from the ancillory products (printers, storage, monitors and other misc peripherals...).
I am also an EMC employee and my personal opinion is that this only makes EMC more relevant to the surveillance market. If the deal closes, Dell and EMC would jointly be able to offer a very compelling end-end solution for the surveillance market that is increasingly moving to the Datacenter. #1 virtualization platform, servers and #1 storage company combining can't be a bad thing for customers and partners.
IPVMU Certified | 10/15/15 01:53pm
Just like Cisco Surveillance has been successful...? Good luck. I have yet to talk to a big name IT brand manufacturer's sales rep and have them understand the needs of the security market; they keep equating features and capabilities with the IT market. I'm not saying it can't be done. What I am saying is there has been little if any apparent effort to learn the specific needs of the security market, meet those needs, and then train their sales people in what those needs are and to articulate how they can be met by the product they are selling.
IPVMU Certified | 10/15/15 02:19pm
I still appreciate your time and comments so far. I would just submit EMC should work on their tech literature, because I have heard little if anything on it. Last thing I saw was a webinar sometime last year that talked big on storage for surveillance, but was 90% fluff and very little straight forward mechanics about why it was better. Maybe because it was on an IT forum and aimed more towards potental end user decision makers. But before anyone plops down $50K or more on a storage system, they are going to run it by their technical staff first and they are going to want numbers, not marketing fluff, to justify the cost.
Please, that is with all due respect for EMC as an established, premeir storage provider which is undeniable.