(bright music) >> Hi, this is Dave Volante, and we're getting ready to bring the Cube to Dell Tech World 2022. This is the first Dell Tech World that will be held in person since 2019. And, it's the first major Dell customer and industry gathering since Dell spun out VMware, as a completely separate company. Without Dell ownership, of course the chairman remains the same. Now, that Dell is untethered from VMware, it means its most lucrative asset is no longer going to show up on the income statement. Now, with the client business as an increasingly large share of revenue for Dell, over the past couple of years, thanks to the pandemic, Dell's gross margin line stands out more going from the low 30s to around 20%. Now, as part of the spin, Dell executed a special commercial agreement with VMware. Dell is VMware's number one distribution channel and sells tons of VMware software. So, that combined with the fact that Michael Dell is leading both companies was plenty of incentive for VMware to make disagreement. The special commercial agreement sets certain terms and conditions regarding how the two companies will work together to maximize technical integrations, co-marketing initiatives, and other go to market opportunities. This was done to ensure that the relationship between the two companies remains as strong as it was prior to the spin. It's interesting, a lot of people complained about the acquisition, that Dell and VMware shouldn't be together but customers, by all accounts, loved it. The other major change is Dell... For, with Dell post spin, is it now is a much stronger balance sheet. It has paid down a ton of debt to where it's now considered investment grade by the ratings bureaus. This means lower interest rates for Dell on its debt. And, it also means Dell has more flexibility to do dividends and stock buybacks and MNA. Dell, in our view, will begin to do some more of these tuck in acquisitions and beef up its software portfolio, As it still relies heavily on VMware software for much of its data center business, but we think it needs to diversify. It's increasingly going to look to expand into cloud offerings with its apex as a service. And, apex really is this as of surface offer, which is essentially Dell's version of their cloud and it spans on premises, the public cloud, and ultimately out to the edge. So, at Dell Tech World, expect the following areas to be emphasized client solutions. It's around half of the company's revenue. So, laptops and desktops and client side solutions have to be part of the discussion. It's a lower margin business than enterprise, but with COVID been growing quite rapidly as remote work has become the thing. The other thing we expect to hear, the other theme, is around ransomware, cyber resiliency, cyber threats are top of mind. Expect Dell to stress the importance of having sound security and data protection strategies in the post COVID era. You may see some specific offerings from Dell or perhaps even further emphasizing security in many of its products or both. Okay, we would also expect more storage innovation. Dell's legacy EMC storage business has been under pressure from the cloud and other competitors like Pure and some new entrants, nipping at Dell's heels. We would expect Dell to beef up its as a service offering both on prem within systems, AKA boxes, and as part of apex. Now, apex is going to be a big theme at the show. The as a service is going to absolutely be a big focus in our view. Dell has entered the market after HPE came in with GreenLake and Dell doesn't want to be overshadowed by HPE's all in as a service strategy. So, expect Dell to provide updates on its progress with apex, identify differentiation from some of the other players, AKA HP, and announce new services across its portfolio. You'll likely also hear some discussion about the ecosystem and partnerships with some global system integrators and also of some announcements about how they plan to appeal to the developer community. I think multi cloud is another theme that you're going to hear. Sometimes we call it super cloud. We would expect Dell to emphasize the importance of its ability to serve customers irrespective of physical location, right? Cloud is not a destination. It's an operating model kind of thing. On-prem, public cloud, across clouds, at the edge. Some of this is going to be vision, a lot of it of course will be vision, but some of it's going to be offerings. Might see some things in Telco and hear some 5g talk, as well as some Edge and Telco partnerships to attack that 5g opportunity and other opportunities at the edge. Dell's a large company. They, I think very conscious of responsibility. So, you're going to hear, I would say some, maybe not tons, but some fair dose of ESG, environmental, social, and governance. This will likely be a theme as companies like Dell, they got to demonstrate their commitment to diversity and inclusion, as well as the sustainability of the environment. They can move the needle. They may likely also get into privacy, things like that. Maybe tech for good, or maybe talk a little bit about AI for good, maybe even AI solutions, although let's, we'll see, we'll report if we hear that. You're going to also hear about digital transformation like any conference and how Dell is helping customers transform their businesses. What maybe what Dell's doing internally with its own technology organization and its own digital transformation. Dell's role is to provide technologies and services that can accelerate those digital transformations. So, you'll hear Dell position itself there we think. And, finally channel partnerships and ecosystems as Dell transforms to a cloud company, that's going to redefine cloud. It has to, in our view, increasingly emphasize its ecosystem partnerships which are a critical component of cloud companies. Now, I hope as a company building out its own cloud vision, and trying to reset the cloud narrative, that we hear some focused discussion around developers. I mentioned that before, and how infrastructure's code is a key aspect of Dell's vision and offerings. Now, the Cube will be there. We start Monday evening. It'll be late east coast time, but it'll be 6, 6:30 west coast time. We're going to feature myself, John Farrier, Lisa Martin, and David Nicholson as host. Monday is largely focused on partners. And, then we go all day, wall to wall, on Tuesday and Wednesday with our typical Cube coverage. Several key execs are going to be joining us including, of course, Michael Dell and Chuck Whitten, who's the new co-chief operating officer, along with Jeff Clark, who is also vice chairman. He's going to be joining us and several others from Dell's ELT, including Cheryl Cook, JD Davis, Alison Dew, and a number of Dell customers, partners, and several members from the product teams coming on to talk about the new announcements that they're making at the show. And, of course, you'll get the Cube's take on all the keynotes, the product announcements, and the vibe at the show and what's happening in the hallways and in the evening events. So, tune into the cube.net, check out siliconangle.com for all the news and coverage. And, we'll see you there. (bright music)

>> Announcer: Live from Las Vegas, it's theCUBE, covering Dell Technologies World 2018. Brought to you by Dell EMC and it's ecosystem partners. >> Welcome back to Las Vegas everybody. You're watching theCUBE, the leader in live tech coverage and this is day three of our coverage of the inaugural Dell Technologies World. We're in the home stretch. Stu Miniman and Dave Vellante joining you, with Alison Dew, the newly minted CMO of Dell. Great to see you, thanks for coming on. >> Thanks for having me, good to be here. >> So, you've been with Dell for a long time. >> 10 years >> You know the drill, you know the culture. But, 23 days as CMO? >> Yes >> Well congratulations. You were on stage today, awesome show. >> Thank you, I couldn't be more delighted. Great experience for me personally. Great show for our customers. >> Yeah, I'll bet. I mean, and you brought in some outside speakers this year, which has not been typical of this show, at least the legacy EMC world, and certainly Dell World did that. >> Stu: Dell World did, definitely. >> Alison: Dell World did do it more, you know. >> Yep, Bill Clinton, we saw some other amazing speakers. >> Elon Musk >> Elon Musk, I remember the year Elon came. >> So that's good, and you got to interview Ashton Kutcher >> Yeah >> Which was quite amazing. He's an unbelievable-- people don't know, he's an investor, he's kind of a geek. >> Alison: Yep >> Even though he's, you know >> An engineer by training? >> Right, so what'd you think of his discussion? >> I mean, I thought it was fantastic and, as you said, I think people don't quite realize how involved in technology he actually is. And also, how well and successful his businesses have been. And then, equally important, the work that he's doing with his foundation and the way he's using technology for really important human causes. I don't think he gets enough credit for that, so it was great to sit on stage and have that conversation. It was super fun. >> Yeah, cause we know him from That 70's Show. >> I know, I like That 70's Show. >> And he's a goofball, and he comes across He's a great actor, lot of fun. >> Yeah, there was one of the lines I actually really loved from the presentation. It's that he looks for companies that have counter-intuitive thesis because if you're doing something that everybody else is, then chances are somebody is going to catch you and everything else like that. You also had to talk about geeks. You know, John Rose and Ray O'Farrell, up there. Share a little bit about some commonalities you saw between these speakers, and some of the unconventional things they're doing. >> So, I completely agree. I love the point of talking, there's so much hype in the space. And that's why I think that line is so important. And so, the big commonality that we're really seeing and talking about this year in particular is we've been talking for years about data as the rocket fuel of the economy and of business transformation, and now we're really talking about data combined with those emerging technologies. So, things like AI, IOT, Blockchain, which are really taking that data and unlocking the business value because for years, there's been this hype about big data, but I don't think the reality has quite been there. And now as those technologies catch up, we're really starting to see some practical applications and use cases and that's why I thought, in particular, John Rose's section on AI and how we're seeing some of those really emerging practical applications was so interesting and fun and tied really well to Ashton's talk track. >> You know, that's a good point. I mean, I feel like we started covering the big data trend really early on. And I feel like big data was like the warm up. It's cheaper now to collect all this data. Now that we have all this data, we're going to apply machine intelligence to that data. We're going to scale it, with cloud economics and that's really what's going to drive value and innovation. What are your thoughts on that? >> Absolutely. We talked this morning on the stage even about some of the companies, large and small, who are really doing that. I think one of the examples that's really interesting Wal-Mart using Blockchain technology to decrease the amount of time from seven days to mere seconds that it takes them to identify the source of food contamination. Really interesting things where, a couple of years ago even, frankly even 18, 20 months ago, that would have been a promise, but maybe not a reality. And so that's what I think is really exciting. Finally. >> It's something that's actually resonated with me this week. We've talked for my entire career, there's the journeys. And it was like, a lot of times it's the journey of the technology. A couple of years ago, digital transformation was "Okay, is it real? Isn't it?" Every customer I talk to, they understand making it real as you said in the keynote, where they're going. What kind of feedback are you getting from people at the show? >> So one of the things I talked about briefly on Monday, but I think is really important, is this promise and the hope and the optimism of digital transformation. And yet also, the fear behind it as well. Through some of the work that we've done in our own research for Realizing 2030, we're really seeing that about 50% of our respondents say they believe in the power of the human machine partnership, which means that 50% don't. And all of the data questions are really divided and polarizing like that. And as a lifelong researcher, that's really interesting to me because it says that there's something going on there. And yet, at the same time, we're seeing over 85% of the respondents that we talk to who say they're committed to becoming a software defined company in five years. So this idea of "I know what I want to do "I know what it means to transform an industry, "And yet, I'm still not really sure that's going to "do me or my business good. "I'm not really sure what that means for "myself or my employees, getting really practical. "Obviously about the technologies, "that's what we do, "but the examples of how people can do "that better from a business perspective." That's a lot of the customer conversation that I've had over this week. >> But you're an optimist. You believe the world would be a better place as a result of machines. >> Yes, I do and we do. Are you an optimist? >> I am, I think there's some obviously some challenges but there's no question. Stu and I talk about this all the time, on theCUBE, that machines have always replaced humans throughout history. For the first time now, it's on cognitive functions, but the gap is creativity and eduction. So I am an optimist if we invest in the right places and I think there's an opportunity for public policy to really get involved. Leadership from companies like yours and others, politicians, of course. >> Dave and I did an event a couple of years ago with Andy McAfee and Erik Brynjolfssono, you had Andy here. Cause it's really it's not just the technology, it's technology and people, and those have to go together. And Dave said, there's policy and there's so many different layers of this that have to go into it. >> And I think we're just starting to really enter into that. On that optimist versus the robots are coming to get us spectrum, obviously there are things that we have to look out for as leaders, as society, as businesses. And yet, even if you look at the example from this morning, where Ashton is talking about minimizing child sexual trafficking and using AI and machine learning to one, arrest many of the perpetrators of these crimes, as well as free thousands of children from sexual slavery. I mean, you hear those examples, and it's hard not to be an optimist. >> I want to ask you about your digital transformation and how that's being led inside of Dell, what it means to you. >> So, obviously, we are two huge companies that came together. So when we talk about digital transformation, and what that really means, have a very different way of operating and working with IT and being in a different business model, we know that really well. One of the things that's really interesting for me personally, as the CMO for 23 days, is one of the biggest line items in my budget is actually for our own marketing digital transformation. Obviously, Dell in particular, had many, many years starting in the consumer and small business, and then growing up to larger businesses, of direct marketing. And we have a great relationship with our customers, but we also have all of these legacy systems and processes and way that work is done and now as we come together with EMC and we start to build Dell Technologies, the idea of what a data driven marketing engine can be, that possibility is something that we're also working to build ourselves. And so, everything from "how do we build our "own data lake to actually bring all "of these sources of data together? "How do we clean up that data?" is something that I'm pretty deeply into myself. There's a lot of that work going on across the company, and then for me personally, as CMO. Big initiative. >> So it's customer experience as part of it, but it's also a new way to work. >> Exactly. And it sounds so trite in a way to say the technology is the easy part, but the really hard part begins when the technology is finished. And I really believe that because if I look at my own team and my own teams experience, there's so many places where they've been doing marketing one way for a very long time. And if you come in and you ask them to do something differently, that's actually a pretty hard thing to do. And the only way to unlock the power of the data and the power of the new technologies, is to actually change how work is done. And I know it's an analogy that's overused, but if you'd ask the taxi dispatch "Are you important to the taxi business?" they would have said "Yes, of course "I'm the most important person in this chain." That's how taxis get to customers. And then along comes Uber, and suddenly you don't need that. You have to really think differently about that and as a leader, that's exciting and also really hard. >> I don't know if you've ever heard Sanjay Poonen talk about change, he says there's three reactions to change. Either run from it, fight it, or you embrace it. That's it. And the third is the only way to go. >> It's the only way. >> How about messaging? I'm sensing different messaging. Much more around the business, maybe a little bit less on the products. Plenty of product stuff here, but the high level stuff. What's your philosophy on messaging? >> I used to say "I'm a person that "believes in shades of gray" and about seven years ago I had to stop saying that. (laughs) >> But the truth is, I am a person who believes in shades of gray and I almost always believe that the answer is somewhere in the middle. So you get in marketing into these debates about is it these thought leadership and high level conversations or is it about product messaging and selling what's on the truck? And the honest truth is, you have to do both. You have to set a vision, you have to build the brand, you have to talk about the business and where we're going from a business perspective. As we talk about things like 2030, that's a really lean into the future conversation. At the same time, we also want to sell you some PCs and some servers and some storage and some data protection, so we need to do that well, too. And frankly, we need to get better as a marketing machine, as a company, and as salespeople, in terms of talking to customers. The right conversation at the right time. Again, sounds like marketing 101, but it's actually quite hard to do. When do you want to have a connected cities conversation? When do you want to just talk about how to modernize your data center? >> It's true, we always talk about above the line and below the line. When you're talking above the line, you might be speaking one language and below the line, another language. You try to mix the two, it doesn't work. >> Right, exactly. >> You have to target the appropriate audience. >> The conversation one of the women on my team started talking about this and I thought it really made sense was macro-conversations, micro-conversations. So to get out of this advertising vernacular, and I grew up in the ad industry, sort of above the line, below the line, and those were always two departments who didn't even talk to each other and usually hated each other. Instead of above the line, below the line, what's the macro-conversation? How are we talking about Realizing 2030? How are we talking about digital transformation? And then what are some of those micro-conversations where I'm going to talk to you about what are the personas that you have in your work force? And lets talk about some in user compute technology together with something really simple, like a monitor, that's going to help them be more productive. Those things don't have to fight with each other, you just have to be honest about when you're doing each one. >> Target them in the right place. >> Alison, we're getting to the end of the show here. >> Yeah, I can talk a lot. >> First of all, New Media Row here gave us the biggest set. We've done this show for nine years, we're super excited. The therapy dogs next door-- >> I love the therapy dogs. >> Are really fun to see, but every once in a while, give a little bit of color in the background here. For people that didn't get to come and experience in person, I know the sessions are online, but give us some of the flavors and some of the fun things you've seen and what would we expect from you in the future? >> I think this is just one of the most fun shows. I mean, obviously it's important for us to set our vision, it's important for people to come into the hands on labs, and the training, and the breakouts, and to learn and to engage. But, you see things like the beanbags and sitting out there, the therapy dogs, and my team does want me to say that every year we get new beanbag covers so we don't recycle those. And then really experience the fun in the Solutions Expo and talking about the way that we're taking trash, plastic trash, out of oceans and making art with it, so we can talk about our sustainable supply chain in an interesting way. I think, I'm biased, but I think this is the best show in terms of actual education and vision, but also some fun. Hopefully you guys think so too. >> Well, Sting. >> And Walk the Moon. Do you guys know who Walk the Moon is? >> Yes. >> I don't. >> Me neither. (laughs) >> Come on and dance with me. >> Oh, okay. Alright, great. >> I'm a child of the 80's, what can I say? >> Alright, so 23 days on the job, what should we be watching from you, your team, and Dell? >> So, as we talked about in the very beginning, this is our first Dell Technologies World, so obviously, we have just gone through some of the biggest integration of large tech companies in the history. And we're really proud of how successful that integration has been, and yet we also still have so much work to do around telling that integrated story. Yes, Dell and Dell EMC, but also together with VM, we're a pivotal RSA Secureworks, and the extend is strategically aligned businesses. And so that's what you'll see us really lean into is "How do we tell "that story more effectively?" We're continuing to invest in the brand, so a lot of the work that you've seen with Jeffrey Wright and those TV spots we launched again in March, and just making sure that people understand what the Dell Technologies family actually is. >> So really a more integrated story. But something that Dell always tried to tell, but you didn't have the portfolio to tell it. Now you do, so that's got to be exciting for you. >> It is exciting, yeah. >> Great. Alison, thanks so much for coming on theCUBE. It was great to have you. >> My pleasure. Cheers, thanks. >> Alright, keep it right there, buddy. We'll be back with our next guest. You're watching theCUBE live from Dell Technologies World in Vegas. We'll be right back.