Dell Merger- the message

Dell Merger- the message​


By: Amit Bhushan Date: 4th May, 2016

The mega mergers and ensuing noises emerging from the world's largest IT companies merger seems to be a good news. At the onset it is merger of a hardware giant with software related services providers such as those for set up and management of data center. It goes on mainly to reiterate the obvious, but something that is not so widely understood in the conscious. It is the excellence in services like storage & data center development/management, security and verification, and protection from malware etc. which is gaining grounds and has almost become a necessity for sales of hardware.

This may have huge implication for the Indian Software providers who have hitherto not developed their capabilities around software services + hardware; so far and have focussed on hardware agnostic business. It is there chance to add on hardware + datacentre Sales/set up on back of Software.There is likelihood of a need for package offerings especially while chasing deals whether large or small, that the vendor can take care of entire gamut of data center set ups from supply of hardware to maintenance and management with issues like protection from malware, data security and verification etc. so that enterprises can focus on their core competency. With new start-ups sprouting and large entities keen to reduce number of vendors to curtail costs, this need is likely to get more pronounced.

A model where common data centers and management for several start-ups, who may be able to follow defined procedures to constantly upgrade their software based services business offerings, may also be in offing, given the rise in the number of such companies. Such businesses are common in advanced countries however have limited facilities in emerging markets. The need for protection from malware, data security etc. keeps going up as the risks in the business rises with the growing sophistication of the malware.

It is the hardware business where obsolesce is seen to be reduced as new hardware that is bought is seen as much more robust and likely to endure over a larger duration.The impact on the computing industry as well as in telecom hardware is going to be tremendous especially in developing world where most of the new data centers are likely to be set up, given the rise of computer services needs and higher number of technology savvy start-ups. Given that most hardware especially the Chinese & other Asian manufacturers are on their own to compete in such environment without a sound service strategy, it is most likely that number of strategic partnerships for Indian services company go up, whereby which Indian companies can pitch the cheaper hardware backed by a strong service support. A model whereby the software vendors are pitching for entire gamut of associated businesses such as data center set up, its security etc. and are able to compete basis overall offering is likely to emerge sooner than later with a lot more vendors specializing on this aspect with strategic tie-ups/mergers.

Similarly on the telecom side the difference may be that mobiles which are sold basis hardware features may start getting evaluated basis a clutch of popular apps giving best user experience, rather than present whereby these phones are differentiated basis RAMs or Camera pixels or audio quality. This may propel the phone manufacturers to have tie up with popular apps so that these which already have popularity amongst users are certifying the best experience on the new mobile instruments for their users. A whole new dimension of strategic tie up may be struck and then the Apps can pitch the new instrument to their users. Let's watch out how the game pans out...
 
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