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Dell and Microsoft Form Strategic Partnership to Enhance Cloud Services

Strategic Insights

— 1 min read

Dell Inc. and Microsoft Corp. have announced a strategic partnership that will enable Dell to use Windows Azure platform appliance to enhance its cloud services. This collaboration aims to provide large enterprises and service provider partners with cloud services offered by Microsoft, while also allowing Dell to help develop the Windows Azure Platform appliance and expand its platform-as-a-service (PaaS) application with Windows Azure platform appliance.

Key Takeaways:

  • The partnership between Dell and Microsoft will enable Dell to use the Windows Azure platform appliance to enhance its cloud services, allowing large enterprises and service provider partners to benefit from the cloud services provided by Microsoft.
  • Dell will help develop the Windows Azure Platform appliance and enhance its PaaS application with Windows Azure platform appliance, facilitating its customers with an expanded suite of cloud-based services.
  • Cloud computing is expected to drive 19% of additional growth in software spending by 2013-2014, according to IDC, with cloud spending growing five times faster than all applications spending, representing a CAGR of 26%.
  • Dell has been a top provider of cloud computing infrastructure to the leading global cloud service providers and is well-positioned to capitalize on the forecasts made by IDC.
  • The partnership with Microsoft will give Dell an added advantage over its cloud competitors, enabling the company to provide an expanded suite of cloud-based services to its customers.
  • Dell reported strong first-quarter revenue with an encouraging 21% growth over the prior-year quarter, driven by strength across all its business segments, with the company expecting fiscal 2011 revenue to increase 14.0% to 19.0% from the prior year.
  • However, Dell's relative weakness in emerging markets remains, and its high debt level is also a concern, as well as stiff competition from technology majors, such as Hewlett-Packard Co., Apple Inc., and International Business Machines Corp.

Statistics:

  • 19%: growth in software spending driven by cloud computing by 2013-2014 (IDC)
  • 26%: compound annual growth rate (CAGR) of cloud spending (IDC)
  • 21%: growth in first-quarter revenue by Dell over the prior-year quarter
  • 14.0% to 19.0%: expected growth in fiscal 2011 revenue by Dell from the prior year

Sources:

  • Zacks.com: "Dell to Partner with Microsoft"
  • IDC: "Future Directions for Cloud Computing"
  • Dell Inc. earnings report: "First Quarter Earnings Report"

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