Dell Launches New Line of Business for Hyperscale Data Centers
A new line of business introduced by Dell aims to bring the company into the x86 server market. The company announced today that it is forming a Datacenter Scalable Solutions (DSS) business unit within its Enterprise Solutions division.
Dell said it is specifically targeting businesses with high-volume technology needs and supply chain requirements, such as tech companies, telecommunications service providers, hosting companies, oil and gas, and research organizations.
A $6 Billion Business
This isn’t the company’s first foray into the hyperscale market. Dell first entered the field almost eight years ago when it launched its Data Center Solutions (DCS) division, which designs and builds solutions tailored to fit the needs of massive-scale data center environments.
While DCS will continue to provide custom solutions to top-tier hyperscale clients, DSS is geared more toward clients employing data center architecture similar to the largest players but at a slightly smaller scale. These are companies that aren’t quite as big as top-tier data players in the so-called hyperscale market, such as Facebook, Amazon, and Google, but still have substantial data needs and often deploy the same x86 server architecture.
This market, although smaller than the traditional x86 server market, is growing rapidly. According to Dell, the second tier is growing three times faster than the traditional market, and represents a $6 billion addressable market. The company is hoping its experience in servicing the top-tier hyperscale market through DSS, along with its support and supply chain capabilities, will give it the edge over competitors.
An Edge in Customization
Companies in the second tier often require specific technologies or deployment models to address their unique business challenges and application needs. Dell is touting its bona fides as a provider of custom configurations and supply chain optimizations, and is promising new and optimized hardware designs, enhanced fulfillment models, and accelerated product introductions once DSS launches.
Dell clearly believes its biggest advantage is in customization. In particular, the company said that its global supply chain gives it the ability to build customized data center infrastructure in cases where clients may require configurations that are not easily found in readily available products.
In other cases, clients may need to install alternate hardware due to specific infrastructure needs, but still want to do so within a Dell infrastructure framework, including the company’s warranty and customer support.
"Dell was the first major server vendor that recognized the unique requirements of the hyperscale market when it introduced DCS in 2007. They are now taking the best practices and learnings from their DCS business and addressing the distinct needs of the space just below the top tier hyperscalers," said Matt Eastwood, senior vice president, IDC, in a statement. The first products branded under the DSS moniker will be made available in the fall, according to Dell.