For Dell, industry standard now includes Linux

Linux now forms a quarter of Dell's server business and is growing fast, the company says. Should Microsoft be worried?
Written by Colin Barker, Contributor

Long hailed as the provider of choice for companies looking for PC solutions based on Intel hardware and Microsoft software, Dell says that Linux now makes up 25 percent of its enterprise market.

The company also claims to have made inroads in the Linux services market and to have reached a comfort level with Linux systems where it can now solve over 90 percent of Red Hat Linux service calls without need to involve Red Hat.

The figures were revealed by Dell's worldwide marketing director for PowerEdge servers, Jay Parker, at a conference in Monte Carlo on Tuesday.

"As part of Dell Service we have managed over 500 Unix to Linux migrations," Parker told ZDNet UK. "We see that growing, not shrinking, over time."

Linux is now "over a quarter of what we sell", said Parker.

Virtually all of the business has come from customer migrations from proprietary Unix environments, from companies such as IBM and Sun.

"We have been successful in helping customers convert from Unix," said Parker. "What those customers feel most comfortable with is what they view as an open source version of Unix. They feel comfortable with the capability and reliability of Linux."

Up to now, Dell has mainly focused on Red Hat's Linux distribution but is now planning to incorporate Novell/SUSE Linux as well. "We were one of the earliest, and one of the biggest, customers of Red Hat, in terms of selling their product on our servers," Parker said.

"Now we are in the process of approving Novell/SUSE Linux as a 'Tier 1' offering. [We are doing] a tremendous amount of testing, validation and certification for Red Hat and SUSE, as well as offering first and second level support for customers on the hardware and the operating system."

Linux and open source have been a blessing for Dell as it has struggled to make an impression, other than as a desktop and laptop supplier, in enterprise computing,  According to Martin Hingley, vice-president of the European Systems Group at analysts IDC, part of the problem for Dell in the enterprise is that "people don't like partnering with Dell".

"Dell has always said 'you can partner with us, just don't expect to get any hardware margin, that's not the way we work'," explained Hingley. He added that large companies like EMC, Oracle and Microsoft are comfortable with that, but the small systems integrators are less so.

According to Hingley, "Dell will tell you that they do [partner] but it is something like 47 European companies for the whole of Europe. You look at IBM and it is something like 200 companies in Germany alone. So from the scale point of view, for the enterprise, how do you stand up and represent a strong partnership when you are not part of an ecosystem?"

To read a full interview with Jay Parker, where he explains how Dell plans to become a key player in the enterprise IT market, click here.

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