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Dell's New Software Division - Great News for Dell

Ominous Portents for HP

Dell is making some exciting waves in the "solutions" business. Building on the momentum as a result of the acquisition of Perot Systems some years ago and a buying spree where they acquired a host of best-of-breed software solutions such as Boomi (Cloud-based Integration Platform), Dell has just announced a newly created Software Division and has appointed veteran John Swainson as president, reporting to Michael Dell.

Swainson led IBM's huge software business until 2005 and was CEO of CA Technologies from 2005 to 2009. On the heels of the appointment of Steve Felice as Chief Commercial Officer, this represents a very promising strategic move for Dell.

While traditional rival HP is busy wallowing in hardware, software, services and Cloud confusion - seemingly unable to make headway on any of those fronts - Dell is very quickly preparing itself to go up against Oracle and IBM - where Swainson spent 26 years ultimately running Big Blue's software business. Swainson helped IBM launch its Application and Middleware division, which developed and brought to market key products such as WebSphere.

Why does this portend ominous events for HP? There's room for Dell or HP to grow into a strategic platform (Hardware + services + software + Cloud) vendor - but not both. While HP's various divisions like Cloud wander around in the fog of confusion, and HP "corporate" is out to lunch, Dell is busy focusing on where the action is.

HP is busy wandering around in the fog, mistaking it for "Cloud." It's not that Dell is going to "take out HP" - far from it. HP is not a worthy target.

IBM and Oracle (and to some extent even SAP) are the worthy targets.

HP will simply get taken down as a result of self-inflicted wounds and collateral damage faced from Dell, IBM, Oracle and mega-vendors like SAP.

This will be an exciting year in the SaaS and Cloud software space as a result of these Dell announcements.

If you think Dell isn't a software vendor, you're dead wrong. Dell "gets it" - SaaS, Software & Cloud. I look forward to having a lot to write about this coming year.

More Stories By Hollis Tibbetts

Hollis Tibbetts, or @SoftwareHollis as his 50,000+ followers know him on Twitter, is listed on various “top 100 expert lists” for a variety of topics – ranging from Cloud to Technology Marketing, Hollis is by day Evangelist & Software Technology Director at Dell Software. By night and weekends he is a commentator, speaker and all-round communicator about Software, Data and Cloud in their myriad aspects. You can also reach Hollis on LinkedIn – linkedin.com/in/SoftwareHollis. His latest online venture is OnlineBackupNews - a free reference site to help organizations protect their data, applications and systems from threats. Every year IT Downtime Costs $26.5 Billion In Lost Revenue. Even with such high costs, 56% of enterprises in North America and 30% in Europe don’t have a good disaster recovery plan. Online Backup News aims to make sure you all have the news and tips needed to keep your IT Costs down and your information safe by providing best practices, technology insights, strategies, real-world examples and various tips and techniques from a variety of industry experts.

Hollis is a regularly featured blogger at ebizQ, a venue focused on enterprise technologies, with over 100,000 subscribers. He is also an author on Social Media Today "The World's Best Thinkers on Social Media", and maintains a blog focused on protecting data: Online Backup News.
He tweets actively as @SoftwareHollis

Additional information is available at HollisTibbetts.com

All opinions expressed in the author's articles are his own personal opinions vs. those of his employer.

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