July 2007 - Posts

  • Dear Mr. Hurd: Power and Cooling Has Sparked a Debate; Customers Want More Than Hot Air!

    HP is busy promoting the company's "energy efficient" products, prompting customers to ask about our current generation of efficient solutions and plans for the future.  You may remember HP announced their "Dynamic Smart Cooling" product last November, but unfortunately, I can't tell you if it's "Dynamic" or "Smart" because the product isn't slated to be released until later this year.

    Power and cooling are critical for customers to achieve their goal of taking maintenance to 30% of the IT budget and innovation to 70%, a topic we discussed in a previous post.  Therefore, in an attempt to fully understand HP's "Dynamic Smart Cooling" plans, I took a second to check out this HP promotional video.  The interviewees advocate that customers look at their data centers as a holistic "environment," an idea I wholeheartedly agree with.  However, HP's Paul Perez really caught my attention when he said:

    "Up until now, in the IT industry, people have thought of servers as building blocks, and what is happening today, especially in the enterprise space, is that the building blocks are the data centers.  We figured out if we can make the data center efficient, then by definition, we're making the servers inside that data center efficient.  We're making the facilities equipment efficient as well.  So we've taken a very holistic approach that is end-to-end." 

    The differences between the Dell and HP power and cooling approaches are in the details in how we address that holistic "environment."  Those differences are subtle but important-and, they're what customers are looking to understand.

    HP's power and cooling strategy is anchored around "Dynamic Smart Cooling."  It's a system that looks to "reengineer the atmosphere" of the data center environment by dynamically controlling the output of computer room air conditioners (CRAC).  What HP won't tell you is "Dynamic Smart Cooling" is a complex, proprietary architecture that looks to lock-in customers and create IT complexity-a concept foreign to CIOs' and IT managers' goal of 30/70.  The "Dynamic Smart Cooling" strategy misses the boat by failing to look at the consumers of energy and sources of heat in the data center environment.

    The three largest consumers of power in today's data center are 1) servers, 2) the overhead required to deliver power to those servers and other devices, and 3) the cooling systems used to cool the heat created from that power consumption.  "Dynamic Smart Cooling" proposes that customers look to address "data center warming" by reengineering the atmosphere of the data center environment instead of looking at the root cause.  The HP strategy fails to drive efficiencies where the power is being drawn, and the heat is being created.  By reducing the amount of power consumed by servers as well as other devices, customers require less consumption, less power delivery overhead and less power required to cool the environment.  It's a simple trickle-down effect that HP missed last week, has missed this week and will probably miss again later this year.  I wonder what Al Gore would think.       

    The holistic approach I subscribe to is anchored in the technology that causes heat and requires cooling: the server.  So why doesn't HP's "holistic" approach do the same?  A quick look at the numbers will tell the story.

    • Dell's PowerEdge 2970 consumes 12% less power than HP's DL385 G2.
    • HP's c-Class BladeServer consumes 24% more power than Dell's PowerEdge 1955.  This advantage was confirmed in a comparative test outlining additional results, many of which I included in my last post.
    • Dell's industry first PowerEdge Energy Smart 1950, 2950, and 2970 increase this lead even further with up to 24% power savings when compared to HP's closest configuration.
    • In terms of cost savings, particularly in environments with 500 or more servers, this can equate to hundreds of dollars/server/year and a more efficient use of existing data center space. 

    Bottom line: Dell servers or "building blocks" consume less power than HP's and we'll be extending this lead later in the year with the most power efficient rack and blade servers in the industry (which I briefly mentioned in my last post).   

    Our holistic "datacenter environment" approach is simple.  It's anchored in the devices that must be powered and cooled, not in a complex, futuristic atmosphere reengineering technology with a catchy name.  While our definitions of "holistic" are different, Mr. Hurd, at least we can agree that customers must look at their entire data center when evaluating the best way to power and cool their environment.  In a following post, we'll discuss additional aspects of our holistic approach that helps customers reach their 30/70 goals today, not tomorrow. 

    Over at HP's BladeWonk blog, Jason Newton had mentioned that Gary Thome is on vacation this week.  I'll weigh into the conversation there. Hopefully, Gary and I can pick up the discussion when he returns.

    As always, feel free to comment on this post, head over to IdeaStorm to share your thoughts or blog about it on your own and tag it "Dell30/70" so we can find you and keep the conversation going.

  • Crowd-Sourcing the Discussion @ LinuxWorld

    LinuxWorld happens next week in San Francisco on August 6 - 9. As part of our activities there, Kevin Kettler, our Chief Technology Officer will deliver a keynote on Tuesday, August 7, 1:30 PM - 2:30 PM. To augment his keynote, we are asking the Linux community to vote on five potential topics over on the Lightning Rod section of IdeaStorm. Linux community: Please vote by Friday, August 3.

    After his keynote, Kevin will address the top two topics as voted on by the community. We'll address the others in Direct2Dell updates coming from me while the show is going on. Later this week, I'll have another blog post that will explain our LinuxWorld activities in more detail. I will update the Linux wiki page here with more details, including scheduled events.

  • Latest on the XPS M1330 Notebook

    I know that many of you have been waiting for an update on the status of the XPS M1330 notebook, and I wanted to take a few minutes to share where we are. While we have begun shipping on a limited basis, we expect to begin large-scale production and to ship systems in all regions beginning this week.

    As Lionel mentioned in a previous update, there are some components like the LED display that may add time to an estimated ship date.

    Dell provides estimated ship dates using many factors, including the time  it takes to ramp production  on a new product in our factories worldwide. We use that time to rigorously test our global sales, manufacturing and quality processes and to deal with issues that inevitably come up when we start to build new products in large quantities in our factories. What do I mean by issues? Things like part shortages, technical glitches, simple cosmetic issues, and other unanticipated issues that can arise when you start mass production.

    One of the simplest and most reliable ways to monitor the progress of your order is by checking My Order Status on Dell.com.

    For existing orders, our teams are doing everything they can to meet the estimated ship dates you were quoted at the time your order was placed. We will contact customers on a case by case basis if their particular orders will experience further delay.

    Moving forward, Lionel will use the blog to provide updates on several things related to the XPS M1330. He'll continue to work with members of my team to understand the latest developments and will share them here.

    Before signing off, I wanted to thank all of our XPS M1330 customers for your business. In the meantime, we appreciate your patience.

  • Global Retail Strategy Continues to Evolve

    As Dell continues connecting with customers around the globe, we're learning that some of them prefer to see and buy our products in retail stores. In May, Wal-Mart announced that we would be selling select desktops and notebooks there and in Sams Club stores. Initial response has been positive. Additionally, last week Carphone Warehouse in the U.K. announced it was providing its customers a Dell Inspiron notebook to those who purchase its high speed Internet service.

    Today we're announcing we will be selling consumer desktops and notebooks through Bic Camera in Japan beginning in early August. In Bic Camera stores, customers will be able to buy our Inspiron 530 desktops, our Inspiron 1520 notebook, our Inspiron 6400 notebook and soon our XPS M1330 notebook.

    These recent developments are just the beginning of a long-term retail strategy.

  • XPS 1330 Update Tomorrow

    I know several of you are expecting an update on the status of the XPS M1330. Truth is that I still need a bit more time to finalize the details. I should have a brief update by sometime tomorrow.

    My apologies for the delay.

    Update 7/27: We're still working through some details and hope to share more soon. My apologies for the delay in communication.

  • Michael Dell Talks About Simplifying IT and More

    Michael recently did an interview with Jim Citrin for his Leadership By Example column for Yahoo! Finance. In the Q&A, Michael talks about Dell's goal to simplify IT and how we're working with customers to define that strategy. Michael also touches on how risk tolerance is helping to shape future direction of the company.

    In my view, that risk-taking mentality is one things that helped us get things like Direct2Dell, StudioDell and IdeaStorm off the ground.

  • Customer Service in Second Life

    It's been too long since I've blogged here and I hope that people don't think that's because we've joined the companies quoted in a recent Forbes article (registration required) saying they were pulling out of Second Life.  GigaOM has a good post that debunks many of the business myths perpetuated in that and other recent articles. 

    I've actually been kept busy with 2D activity-leading an initiative to look at potential new designs for the home page of Dell.com.  But, that's a future story to come.  As I recently told an L.A. Times reporter who chose to leave all of my comments out of her article, we remain pleased with our entry into the metaverse through SL and we plan to continue building our community there and learning from our first foray into virtual worlds.  There has been a drop in the daily traffic to our space over the past few months, but in all honesty, we haven't given people a whole lot of new and interesting reasons to visit.  As I noted in a response to a ZDNet blogger, though, we still see a lot of opportunity to connect with people through this platform.  

    We did do a Rock the Ark party, and streamed in a video from our Inspiron launch event.  And, we recently streamed Michael Dell's Small Business Town Hall into SL, and he even took a question from the group watching there during his live Q&A session. And, we've built out a StudioDell Theater where you can watch videos from our Webby-award-winning StudioDell site.  But, as we hear from Grace McDunnough and Linda Zimmer, it takes more than those sort of things to make this environment work.  We need more ways for you to interact with us there.

    So, as further evidence of our continued exploration in 3D interactions, I'm excited to introduce a new member of the Dell family in SL -Todd Dell.  Todd is part of our Online Community Outreach team and he is about to begin keeping office hours on Dell Island to provide assistance to residents who visit our virtual space.  From directing you to the new StudioDell theater, to helping you with Dell customer service and tech support issues. Todd is based in the U.S., but will have the contacts inside of Dell to get assistance for customers in other parts of the world.

    Beginning August 6, Todd will be hanging out in our new coffee shop, The Buzz and Bean, in Dell City Monday - Friday, 5 - 6am SLT and 12 - 2pm SLT. Based on traffic and demand, we may adjust those hours in the future.  Yes, I know avatars can't drink coffee, but we thought the comfortable atmosphere of a coffee shop might be a relaxing place to chat about whatever is on your mind.  Although advice for your live life isn't exactly the sort of questions Todd hopes to be able to answer for you.  Do drop by with your Dell-related inquiries though!

  • Update on the XPS M1330 Notebook

    Since last week's update and my subsequent correction, there are lots of customers like Ed, George Pharell, Francois and others who are asking me for updates on the status of the XPS M1330 notebook. I can confirm that we have started shipping systems. However, the process to ramp production has taken a bit longer than we expected. The reality is that due to the unique nature of some features of the notebook, we've had to work through some additional manufacturing processes.

    The important point is that we are now building orders to ship to customers worldwide, and we will keep working to ship these notebooks as quickly as we can. I'll provide another update by mid-next week to give you a better idea for where we are in working through the backlog.

    At this point, estimated ship dates for new orders is about four weeks. Like I mentioned in my previous post, some specific components like the thinner WLED display will add time to those estimated ship dates.

    I know many of you have been waiting eagerly for your XPS M1330 notebooks, and we appreciate your business. We are working through details in real time and will look to provide updates when we have more details to share.

    Thanks again for your patience, and stay tuned for a status update by mid-next week.

  • Worldwide XPS 700 Motherboard Exchange Program Launch Date Confirmed

    Update, 8/13:  The link for the XPS 700 Exchange Program is now live:

    www.XPSUpgradeProgramDell.com

    We are pleased to announce that we will launch the XPS 700 Motherboard Exchange Program worldwide on Monday, August 13, 2007. 

    On August 13, we will launch a website for XPS 700 and 710 customers to register for the program and to tell us what options you prefer. XPS 700 customers will be able to choose a Hardware Kit at no charge, and can also opt for on-site installation service at no charge. XPS 700 customers will also have the option of purchasing a quad-core QX6700 processor for 25% off our Electronics & Accessories price (pricing may vary depending on the time you order). XPS 710 customers will have the option of of purchasing a Hardware Kit and on-site installation service. Pricing and program offering details may vary by region and will be outlined in future posts.

    This program will expire on October 13, 2007. All upgrade requests must be submitted no later than midnight Central Standard Time October 13, 2007. For more information, here's the very first post where we outlined the details of this program, and here's the link to the XPS 700 Motherboard Exchange Program category that contains all the information we've shared so far.

    Between now and August 13, I'll plan to publish more details about how to prepare, how the process will work, pricing details for XPS 710 customers, and more. In the meantime, we'll continue to prepare for the rollout of this global program.

    We appreciate your continued patience.

  • Values in Action Report Released Today

    Today we're releasing "Values in Action," our annual report measuring the company's progress towards instituting sustainable business practices. We celebrated a number of successes in 2006, working alongside our customers, employees and stakeholders. Highlights from this year's report include:

    Free Consumer Recycling

    In June 2006, we committed to offering consumers free recycling for any Dell-branded product at any time anywhere. Six months later, the program went global.  And while we extended a challenge to competitors to offer "no charge, no exceptions" recycling services to consumers, we remain the only company in the industry to offer consumers the option of recycling their computer for free. Hopefully, this will be short-lived.

    Design for Environment

    We also enhanced our aggressive programs to continue to minimize the environmental impact of our products. We set a goal to eliminate the use of brominated flame retardants (BFRs) and polyvinyl chloride (PVC) from product design by 2009, and successfully met requirements of the European Union's Restriction on the use of Hazardous Substances (RoHS) globally. We also made great progress with our Forest Stewardship Program. Today our marketing publications use on average 50 percent recycled content paper, meeting our 2009 goals three years early.

    Customer Ownership

    We articulated our belief that the customer experience includes working together to protect the environment. In 2006, we launched Energy Smart—an aggressive product energy efficiency strategy to help customers realize the greatest performance per watt from the desktop to the data center.

    We also introduced "Plant a Tree for Me," the first program in the world to enable the offsetting of carbon dioxide generated by the production of electricity used to power computers. The program is now available in six languages on two continents.

    Diversity and Ethics

    Finally, we renewed our commitment to being an ethical and inclusive workplace. In April 2006, the U.S. Secretary of Labor presented Dell with the Opportunity Award, the nation's highest recognition for voluntary workplace diversity efforts among federal contractors. We also received a score of 100 percent for the third year in a row on the Human Rights Campaign's annual Corporate Equality Index and partnered with our employees to host a global Ethics Day campaign. Going forward, Dell is committed to working with employees, customers and suppliers to drive the highest ethical standards for workplace practices and safety.

    Thank you for your ongoing support of our sustainability efforts. As we look ahead, we are more focused than ever on involving our customers globally to help improve our shared environment and communities, as well as encourage new ideas on ways we can enhance our partnership. Take a few minutes to read the report. Share your thoughts and feedback. Visit IdeaStorm and DellEarth. Together, we will continue to make a world of difference!

     

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