Dell just announced the hiring of Jai Menon, former IBM CTO of its Systems and Technology Group as its new CTO of its Enterprise Group. Dell like other PC makers are seeing the handwriting on the wall and adapting to tablets and smart phones which are rapidly replacing desktop and laptop PC's as the user interface to computer systems.
With Apple's new iPAD mini announcement along with devices from other Android based tablet providers it looks like the PC as a client driven device is rapidly diminishing.
Vendors like Dell are moving to backend server providers leveraging both Linux and Microsoft Windows based technologies, but also adding data storage via low cost advanced SAN's (Storage Area Networks).
This will have a very interesting impact on IBM who has always maintained an extremely high price point on its Intel based servers known as the xSeries. IBM has always been able to charge more money by providing services on top of the equipment and therefore selling a high price total solution to its customers.
Companies like Dell are responding with lower cost equipment with integrated software that reduces the need for vendor provided expert consultants.
While IBM may have been a step ahead of others by selling its client oriented PC business to Lenovo and retaining its server business, but lets see if it can adapt to this new low cost easy to use set of equipment from Dell and other competitors.
With cloud on the up swing and major could providers buying literally thousands of servers as they grow, and internal companies moving to a tablet client server driven environment the demand for low cost servers is increasing rapidly.
It shall be interesting to see how this all plays out. There is a strong message here however. If you are not looking at tablets along with Internet based server centric solutions for your employees and systems you need to take a closer look.