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Michael Dell On The Impact of China Tariffs, Public Cloud Backlash And VMware Synergies

"As much as 80 percent of the customers across all segments – small, medium, large – are reporting that they're repatriating workloads back to on-premise systems because of cost, performance and security," said Dell Technologies CEO Michael Dell in an interview with CRN.

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Is your technical collaboration with VMware at an all-time high?

Yes, it keeps advancing. We have found all sorts of ways to partner together with Workspace ONE, NSX, with everything going on in the software-defined data center. You see it coming through in the products. We announced a whole series of new products at VMworld. You'll continue to see that collaboration advance. VMware has done a great job in enabling and preparing for the multi-cloud world, and obviously it's a very important part of Dell Technologies. The revenue synergies have been super strong. Partners and customers like and appreciate that we're bringing them a complete solution. We do that, not just across Dell EMC and VMware, but also for Pivotal. We have this Pivotal Ready Architecture, which is built on VMware and on top of our infrastructure, and customers absolutely love that. The more we can collaborate together across the Dell Technologies family, the better we're doing. The results are pretty conclusive when you go back to that 24 percent growth in the data center business. By the way, the prior quarter it was up 25 percent.

How big is the potential for game-changing solutions for data center customers with Pivotal Ready Architecture built on VMware?

The Dell EMC partnership with VMware is really the foundations of this. As customers go down the path of wanting to create cloud-native applications that are really cloud-neutral and cloud-agnostic, meaning that they want to decide where they deploy those applications -- some may be on-premises, some may be in a colocation facility, some may be in a public cloud, some may be on a customer's premises – what they quickly realize is it's not the public cloud versus the private cloud, it's a multi-cloud environment. So Cloud Foundry enables this developer-friendly environment that is cloud neutral and cloud agnostic, so you see Pivotal continue to grow quickly.

Once companies go down that path they go, "Hey, how am I'm going to deploy this?" [We can say,] "Well, guess what? We have the Pivotal Ready Architecture. It already runs and works well with your VMware environment and Dell EMC infrastructure." That's taking off very quickly. There's a lot of demand for that. There are truly companies that say, "Hey, I'm doing all these new requirements. It's got to be multi-cloud. The answer isn't one or the other, it's both."

What's your strategy with Workspace ONE?

By bringing together all the innovations from our client business, from VMware's Workspace ONE and AirWatch, and embedding those together, we created a fabulous solution. We have with WorkSpace ONE well over 50 million devices under management and growing very, very fast. It's a great opportunity for partners to add value and to help organizations transform their environments for the people that actually do the work. It turns out the primary device for productivity in the office is still the PC.

 
 
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