Ezra Gottheil

Editor’s note: In the second of a two-part report, Technology Business Research Analyst examines the importance Internet of Things plays in its corporate strategy. (Part one is available online. Dell has been cultivating a number of IoT initiatives, with offerings coming from business units throughout the  organization. Now, Dell’s several IoT assets, and new ones under development, will be coordinated in a new  organization reporting to Ray O’Farrell, general manager of the IoT Strategy Division. There will be $1 billion in  additional R&D investment in IoT over the next three years. IoT solutions are all collections of different hardware,  software and service parts, which TBR calls components. The diversity of components is a challenge to customers  and vendors because solutions cut across organizational lines. Dell is addressing this challenge with a new  organization that will also cut across those lines, coordinating and funding specific components and component  enhancements.  TBR believes the new IoT organization will also serve as an IoT customer and partner entry point to  Dell’s organization and offerings.  TBR believes that this consolidation of IoT assets is well‐timed to the evolution of the IoT market. There is a  proliferation of relatively small‐scale IoT projects in large organizations, at the line‐of‐business, plant or product  level. IT departments face a new “shadow IoT” based on public cloud IoT offerings. IT will want to standardize a set  of core IoT functions, and will similarly want to select long‐term vendors. Dell’s IoT offering is broad and well‐defined; it provides the infrastructure. Dell is offering what the market is increasingly demanding. Dell’s challenge  is to leverage its strong position and reputation with customers’ IT staff to gain similar positive positions in other  customer roles.  PCs are still Dell’s foundation  Dell reiterated its commitment to PCs, which serve two critical functions for Dell Technologies. PCs generate  critical revenue and profit for Dell (i.e., 50% of revenue and 32% of operating profit in 2Q17), excluding a one‐time  settlement that added $68 million to reported segment and company operating profit. PCs also provide a key entry  point for new customers and partners. Dell reported continued growth in PC revenue, leading the market in 2Q17, and picked out specific gains in targeted segments such as gaming, workstation, and consumer and small  businesses in specific countries.  The company has also been successful in driving up average PC unit revenue, to $639 in 2Q17, an increase of 3.5%  year to year. This is a result of communicating the value of the capabilities of higher‐end PCs, the halo of the top‐ of‐the‐line XPS line, the success of the narrow‐bezel design, and the success of 2‐in‐1 designs. Dell is more  successful than its competitors in driving attached services sales, which have higher margins than PCs, and has had  good results from its automated predictive support services for both commercial and consumer markets.  Dell is also committed to PC as a Service (PCaaS). The details of the program were not publicized, but TBR was told  to expect announcements soon. TBR expects the program to be successful, increasing revenue, margins and  customer loyalty. CEO Michael Dell mentioned PCaaS in a conversation about Dell meeting the needs of companies  undergoing digital transformation, presumably because PCaaS is consistent with Dell’s goal of eliminating IT “grunt  work” through automation of everything that can be automated.  Dell Technologies uses IoT to represent the future of IT infrastructure  TBR believes Dell Technologies is effectively using IoT to position as the comprehensive vendor of IT infrastructure  products and services for the future, where IT will be increasingly called upon to adapt rapidly to opportunities for ...

Editor’s note: Ezra Gottheil is principal analyst at Technology Business Research. HAMPTON, N.H. – The Samsung Galaxy Note 8 is both the flagship of the Samsung fleet and the regimental flag for Samsung’s strategy of making its smartphones the choice for pocketable enterprise productivity. The Note 8 excels at both roles. As a smartphone, it is superb. It has a huge, beautiful screen; a great camera; strong processing and graphics power; and a headphone jack and is water and dust resistance. The features that make it a productivity tool, like high security, the stylus pen, app pairing and edge...

Editor’s note: The Galaxy Note has productivity features no other smartphone offers as well as commercially focused security and ecosystem enhancements, says Technology Business Research Analyst Ezra Gottheil. He examines the Samsung strategy behind the device. He examines the Samsung strategy behind the device and its offerings from apps to improving productivity.   HAMPTON, N.H. – Samsung aims its flagship of flagships, the Galaxy Note 8, at two markets. It is the top of a high-end line for consumers who either want the most smartphone Samsung offers, or who especially value its productivity capabilities. TBR finds the other market,...

Editor’s note: In the age known as Internet of Things, the companies that will be successful are those that prepare to embrace continual innovation, says Technology Business Research Analyst Ezra Gottheil. This is the second of a two-part report. HAMPTON, N.H. – Centralize support is crucial to enterprise Internet of Things adoption. To fully leverage IoT, projects will proliferate throughout an organization, initiated and implemented in different business units and locations. Without coordination, this would result in sprawl, security vulnerabilities and inefficiencies. Overly restrictive coordination, however, would result in slower innovation and failure to fully realize the potential benefits...

Editor’s note: In the age known as Internet of Things, the companies that will be successful are those that prepare to embrace continual innovation, says Technology Business Research Analyst Ezra Gottheil. This is the first of a two-part report. HAMPTON, N.H. – In the Internet of Things (IoT) era, successful companies will innovate constantly, at all levels of the organization. The most successful of these companies will change their culture and processes to foster this innovation. For many companies, IoT will trigger organizational change, which, in turn, will drive innovation in other areas as well as IoT. TBR believes...

Editor’s note: Business is where technology has impact, and IoT’s impact will keep expanding rapidly in the coming five years. Technology Business Research  predicts that IoT revenue will continue to grow well beyond those five years, and of course, IoT innovation will not stop.  HAMPTON, N.H. – Internet of Things (IoT) World, held recently in Santa Clara, Calif., was a beehive of activity. Attendees included many small and local companies seeking sales and alliances, some larger vendor and customer companies looking for products or services to solve problems, and a variety of private equity investors looking for opportunities. The...