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August 24, 2015

Dell ups ante on 2nd tier of hyperscale data centres

Company believes market is emerging below Microsoft, Amazon and Google.

By Jimmy Nicholls

Dell prepared to delve into the second tier of the hyperscale data centre market on Monday as it launched a business unit targeting firms with large-volume computing needs.

The division will cater for customers in web tech, telecoms, energy, and research, after the computer tech company noticed burgeoning demand for equipment handling heavy workloads over distributed environments.

The plans build on Dell’s Data Center Solutions division, launched eight years ago, which directly targeted the hyperscale market dominated by the so-called Big Four – Amazon, Google, Microsoft and Facebook.

Matt Eastwood, senior vice president at research firm IDC, said: "Dell was the first major server vendor that recognised the unique requirements of the hyperscale market when it introduced Data Center Solutions in 2007.

"They are now taking the best practices and learnings from their Data Center Solutions business and addressing the distinct needs of the space just below the top tier hyperscalers."

Central to the needs of this below-hyperscale market is a demand for data centres that can handle sudden upticks in demand, as well as the use of unorthodox software and specific data demands, among others.

Dell touts itself as especially able to serve these demands due to its global size and supply chain, and will introduce the first products from the new division this autumn.

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"Dell Datacenter Scalable Solutions is a prime example of how Dell, as a private company, is able to be more nimble, make faster decisions and – most importantly – drive innovation on behalf of its customers," said Ashley Gorakhpurwalla, general manager of server solutions at Dell.

"While others in the IT industry have been focused on marketing hype or reducing capex costs only, we’ve created a new operating model that is centred around flexibility."

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