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Dell Technologies has reported impressive gains in its most recent financial results as spending on IT in an on-premises environment has resumed following the COVID-19 epidemic. The company has a record revenue of ven 94 billion for the most recent fiscal year.

Still, Dell struggles with the notion that while all workloads are shifting to the cloud, the amount of spending for the IT environment on campus continues to measure in the trillions.

Matt Baker, Senior Vice President of VentureBite, Dell EMC Business Unit Strategy, to get a better understanding of how digital business transformation is building “Nathol”, through which organizations are becoming more dependent on applications running in both. Cloud and on-site IT environment.

VentureBet: What is Digital Transformation Nothol? It seems that something should be avoided.

Matt Baker: As an industry, we throw the line “digital transformation” almost a little bit. I want to talk a little more about what that means and the implications for companies. A notch can be when an industry is intermittently stretched. There are many companies that we would call enterprise that now operate more like a cloud provider. We rely on the false duality that there is a difference between cloud-based companies that are different and better than some enterprise. Once an organization is pulled by a bundle or converted to digital, it becomes very difficult to understand the difference between a public cloud operator operator and an enterprise, or even because their digital operations become a major part of their difference. It is a key area for optimization and investment that drives business value.

VentureBet: Is it part and parcel to start more operations like a software company?

Baker: I think it’s a little too much. They have somehow become a digital platform. It requires innovation energy to create a solid digital experience.

Venturebet: What is the best way to get through Nathol?

Baker: The way to not be squeezed by Nathol is to do it actively. The last thing you want to do is force a digital conversion. If you do it actively, you can’t be squeezed through it with your 50 colleagues. The hole is large enough to walk your way through it, on the contrary the whole industry is painfully flowing through it. You don’t have to hold flat feet. If you go through this process, pulled by the opposite event, then it will become a completely less painful eater.

Venture Beat: How Does All This Affect Dell?

Baker: We’re fighting a concept among these inexperienced believers “everything is going to go to some public cloud players.” We will look among the companies that have gone through the exact opposite of these knots. They have, in essence, hired someone else, and invested more in its operation, as opposed to the means of production. They want the relaxation and resilient nature of the public cloud, but they also want control and, frankly, cost optimization.

We are not arguing against the public cloud. In fact, we partner with most of them. Instead, we are trying to educate people on the fact that this is not a total zero-sum phenomenon. We want to discuss more about the role of IT in moving a business forward. We should not think about this in really simple, false mass and dukotomies and zero-capable beliefs. That poses a definite challenge for companies like Dell, but as technology becomes more central to how companies manage and deliver value to their customers, it’s really a tremendous tail for us. But somehow this has resulted in a discussion of how headwind he is and we are always left scratching our heads. We are only seeing continued investment in technology as a way of innovation, and it will only accelerate, not decrease. The key message is that we should not create these dichotomies between the enterprise and the cloud.

VentureBeat: Do you think organizations have control over the true value of IT these days?

Baker: Honestly, we don’t know the true cost of this epidemic from a technology point of view, as the CEO told his CIO, “Get us online at any cost. Here is a blank check. Just keep working for us. “Now, the CFOs are realizing how much it cost and they went, ‘Oh, we’ll revive this a little bit.’

VentureBet: It also seems that organizations are starting to process and analyze data in real time near the edge of the network where creation and consumption takes place, so the IT industry is entering a new phase.

Baker: Industry insiders understand that. I think different companies have different degrees of maturity. No more than 2,000 miles to deliver real-time experiences. There is a basic law of physics that will govern the ability to deliver real-time automation or real-time experiences simply because of the speed of light.

We’ve been on a great concentration tear. I think we have reached a high concentration and so, we will see a kind of swing towards decentralization due to real-time analytics and real-time experiences. I don’t think the mainstream fully understands real-time influences. We want to be able to draw attention to that and say “there’s a better way forward that you won’t consider.”

VentureByte: Now that Amazon is building servers for on-premises environments, how do you see them as competitors?

Baker: We are at the beginning of this great transition to container-based, cloud-based architectures, where every cloud player, including VMware and IBM, does not need to own them and is increasingly expressing their potential as a software platform. Powered by Amazon, Micro .ft, or anything, say. I think a lot of you guys are starting to converge on different models. Everyone comes to a logical conclusion, that there will be different horses for different courses.

People want to own and operate some of their infrastructure. They want to use it as a service to other elements. We’re seeing players in the industry now that it’s really more than just a hybrid and multi-cloud world.

VentureBet: Do we have enough network bandwidth to accomplish that vision?

Baker: I think a lot of telecom stuff is solving the last mile problem. I think we need innovation in terms of telecom networks, but I don’t think once you get that first hop, then we’re really limited. There is plenty of fiber in the world to accomplish a lot today.

If the focus is on analyzing the location where the data was generated, there is not much volume of traffic going back and forth. In fact, it is an exception that will go back. You are not sending all data. This is a big argument for this notion of decentralization. It’s not just the problem of procrastination. It is an acute volume problem. You don’t want to send every video feed back to a datacenter somewhere outside of Seattle, when you could just process it there. It’s expensive.

VentureBet: Will Legacy Beacon Apps Die Then?

Baker: There is no zero sum in technology. We will continue to look at legacy-oriented solutions. In many of these modern data-centric applications, you’re actually integrating both batch-like operations with real-time operation. It’s one more cycle. I don’t think we’ll see the fade like a batch and take it all in real time. We see that they are not often connected together.

VentureBet: Ten years ago the industry promised it would be easy. What happened to the simple button?

Baker: In all fairness, it has become much easier than it was 10 years ago. A good example of this is the simplicity of the HCI (Hyper Conversed Infrastructure) solution. There aren’t many silos. It is very easy to operate. The point with the cloud argument is that no one recognizes that the cost and complexity of operating IT equipment is much lower than when we first envisioned a public cloud environment. The fact is that the complexity is confined to the application layer only. I would not say that managing a private cloud environment is trivial, but it is much more trivial than it was 10 years ago.

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