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Dell Unveils Subscription Model to Counter Amazon, Microsoft

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Dell Technologies Inc. will offer business clients more flexible, on-demand buying options for products like servers and personal computers, seeking to counter the lure of cloud services from Amazon.com Inc. and Microsoft Corp.

Customers will now be able to use Dell’s hardware based on their consumption, as a service, or through a subscription, the Round Rock, Texas-based company said Tuesday in a statement.

Dell and its hardware peers have been under pressure to offer corporate clients the flexibility and simplicity of infrastructure cloud services. Public cloud titans such as Amazon Web Services and Microsoft Azure have cut demand for data-centre hardware as more businesses look to rent computing power rather than invest in their own server farms. Rival Hewlett Packard Enterprise Co. said in June that it would move to a subscription model by 2022. Research firm Gartner predicts 15 percent of data-center hardware deals will include pay-per-use pricing in 2022, up from 1 percent in 2019, Dell said.

“We really think it’s an important time for Dell to simplify the way we offer our portfolio and meet customers’ needs,” Sam Grocott, Dell’s senior vice president of product marketing, said in an interview. “This type of a model – as a service – was born in the cloud. As organizations have leveraged this model in the past, they have come to like it.”

Dell is making it easier for clients to upgrade their hardware since they don’t have to spend a large amount of capital expenditures upfront, but can pay a smaller amount each month that counts toward a company’s operating expenditures. For the consumption programs, customers pay for the amount of storage or computing power they use. Companies can also hire Dell to completely manage their hardware infrastructure for them.

While Dell’s overall sales climbed 2 percent in the quarter that ended Aug. 2, demand for its servers and networking gear dropped 12 percent in a reversal from last year, when there was unprecedented customer interest in the products.

Dell still expects the vast majority of customers to pay upfront for products in the next three to five years, Grocott said.

© 2019 Bloomberg LP



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Google Pixel 6 and Pixel 6 Pro: Everything we know so far

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Google Pixel 6 is hot in the rumor mill with multiple leaks presenting a deeper peek into the upcoming Google smartphone. It is also speculated that the Pixel 6 will be accompanied by the bigger Pixel 6 Pro phone. It is highly likely, the Pixel Fold and even an XL model may debut alongside the Pixel 6 series smartphones. The … Continue reading

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Watch woodpecker destroy hidden camera one obnoxious peck at a time

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You’ve probably seen or heard a woodpecker in action at some point; they’re the small birds that can spend hours driving everyone in the vicinity to madness with incessant taps against trees or wood buildings. What you probably haven’t seen is what it looks like to be the object subjected to the woodpecker’s wrath — until now, that is. A … Continue reading

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MacBook Pro M1X and Mac mini may release Intel from service in 2021

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The release date for a new M1X version of the MacBook Pro from Apple, along with a new Mac mini appear to be headed for a special event. It’s been rumored that the most powerful and updated Mac mini with M1X chip inside will be revealed at an event in the forth quarter of this year, 2021. It’s also tipped … Continue reading

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