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December 13, 2013

Michael Dell's keynote at Dell World 2013: reaching for the cloud

One big problem with being a public company is that every three months it's imperative not to disappoint analysts and investors. Dell won't have to worry about that anymore because it returned to being a private company. That means Dell can now take the longer look, pursue the bigger picture, and no longer suffer from the infliction of short term thinking, as Michael Dell so eloquently put it in his keynote address at the 2013 Dell World conference in Austin, Texas.

And that was the core of Michael Dell's message, that as a private company Dell now has the freedom to make the bold moves that are necessary, investing in emerging markets, and take a long-term view of their investments. Dell said he senses a new vibe of excitement at the company that bears his name, and that he feels like he is part of the world's largest startup.

He did, of course, also mention that sales were up in the double digits, that 98% of the Fortune 500 are Dell customers, that Dell has established a new Research Division and also the Dell Venture Fund. Dell reminisced how he had been taking an IBM PC apart in his dorm room, found that many of the components weren't actually by IBM but steeply marked-up 3rd party components, and how he felt he could make that technology available cheaper and better. He expounded on a recurring theme in his keynote, that the proliferation of computer technology between roughly 1985 and 2005 also saw poverty in the world cut by half.

Dell showed an Apple-esque commercial that will run in 2014 and plays homage to all the little companies that started with Dell, including the one in dorm room #2714 (Dell itself, founded on a thousand bucks). Nicely done and charming. He spoke of how the future is the move beyond products and to end-to-end scalable solutions. He spoke of $13 billion invested in research, highlighted the Dell PowerEdge servers that are in the top two in the world, demonstrated, right on stage, how integrated server, storage and network functionality in fluid cache technology clocked in at over 5 million iops (input output operations per second).

Dell spoke of their new mantra, to transform, connect, inform, and protect. Transform as in modernize, migrate and transition to the future. Connect as in connecting all the various computing devices out there, including the Dell Wyse virtual clients, because, still and for a good time to come, "the PC, for a lot of organizations, is how business is done." Inform, as in turning data into useful, productivity enhancing results, making companies run better with data analytics. And protect as in offering next gen firewalls and connected security to keep data safe and ward off attacks before they even happen.

Dell also reminded that the company has been the leader in displays for over a decade, and touched on 4k2k video resolution that is available from Dell now, another example of Dell making disruptive technology available at accessible prices.

Dell then introduced Elon Musk, who had driven in in a red Tesla Model S, his company's groundbreaking electric car. Along came David Kirkpatrick who took on the job of engaging Musk interview style. Musk, of course, also pioneered PayPal, and, in addition to Tesla, runs SpaceX, sending rockets into space. Musk was there, however, not so much to discuss technology, but to illustrate the impact of pursuing the big picture, big ideas, things that simply need to get done. As if on cue, Dell rejoined the conversation, congratulating Musk and bemoaning the infliction of short term thinking that hamstrings progress and big ideas and bold bets.

Musk said this must be the best time in human history, where "information equality" breaks down barriers, making the world a safer, better place, meshing with Dell's clear belief that technology is a boon for mankind. Today, Musk said, anyone with internet access has more information available than the very President of the United States had just 30 short years ago. Musk also expressed regret over a pessimistic, negatively biased media that always seems to seek the negative.

The address concluded with an observation by Kirkpatrick about Tesla cars' constant connection with the Tesla's computers, and how that information feedback and back and forth is used to make the cars better. Just as, Dell said, his company's approach with customers, a constant back and forth, and constant feedback in their quest to improve and innovate.

This 75 minute keynote was a bold move with a big picture and a big message, with Dell, Musk and Kirkpatrick almost like actors in a play. Quite a task to pull this off, but the message was loud and clear and finely tuned: Dell is now free to pursue big ideas. Like Elon Musk with his electric car and rockets shooting into space, Dell can now reach for the cloud(s), and beyond.

Posted by conradb212 at December 13, 2013 02:57 PM

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