subject: Dell Supply Chain to Launch Cloud Computing Boom [print this page] Dell Supply Chain to Launch Cloud Computing Boom
Dell has snapped up Boomi, a company that describes itself as a "cloud integrator".
Dell could soon be selling you the utility of computing, but not necessarily the physical computer. When companies like Dell begin to offer cloud services, the likelihood is, cloud computing is coming to businesses of all sizes, whether they like it or not. You had better get ready.
Here's how it could work: Dell will sell or rent you a complete server package. You'll get physical hardware on your premises for immediate needs and, should you find yourself needing additional capacity in the future, you'll be able to seamlessly plug-in to Dell's cloud and get all the computing power or storage that you need. Billing will be done via your existing service contract with Dell.
There'll be no need to research or sign-up to third-party cloud services and, more importantly, no need for third-party integration software to make everything work together.
The amount of people utilizing cloud computing is increasing every day, and industrialization' is becoming a buzzword in the data center industry. Companies such as
Digital Realty Trust, IBM and HP are seeking to build data centers more quickly and cheaply by using standardized components and designs and improving supply chain efficiencies.
One of the most prominent examples of industrialization is occurring at Dell, whose Data Center Solutions (DCS) unit is helping some of the largest players in cloud computing fill their data centers with servers while encouraging smaller companies to get on board.
The DCS team works closely with large customers, including Microsoft, to provider servers and storage optimization for their applications and facilities.
"A lot of the innovation we bring is in the supply chain," said Rhodes. "We have a saying: Arrive and live in five,' meaning that server-filled racks are up and running within five hours of their arrival on site.
"It's all about logistics: just-in-time delivery of vast amount of compute, ready to plug-and-play," said Rhodes. "We have to rebuild our supply chain to accommodate these customers."
As the director of supplier quality for DCS, Chris Thompson oversees a supply chain that had to adapt to shipping huge custom orders faster than ever; orders that previously required eight or nine weeks lead time are now shipping in two to three weeks.
It is a challenge that aligns with Dell's legacy as a pioneer in online ordering that allowed individuals to customize their PCs and notebooks. Many of the same principles are now applied to pre-loading racks with hundreds and even thousands of custom servers, and sometimes packing them into containers.
"We know how to build and ship with short lead times," said Thompson. "We've been able to go back and work through the engineering team to leverage capabilities within Dell. It's actually taking the knowledge and skills that are Dell's core competency and applying that to this DCS model, which is really a custom configuration for the customer."
It's been a big job. But Thompson says the challenge is commensurate with the size of the market, as cloud computing drives bulk purchases of sleeker servers.
"From the supply chain logistics standpoint, this shift is exciting stuff," he said. "We're pushing the envelope on supply chain because we're willing to invest in cloud computing. It's created a huge opportunity for this company and will be the future for thousands of other companies large and small."
