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Why Dell’s emerging market growth outpaces the rest

Dell Technologies founder and CEO Michael Dell tells ARTHUR GOLDSTUCK that Africa is bright with tech opportunity

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The founder and CEO of Dell Technologies says that the company’s rapid growth in Europe, Middle East and Africa (EMEA), which has outpaced that in the rest of the world, is a direct result of the massive opportunity in the region.

“Ultimately, we’ve invested where there has been opportunity,” Michael Dell said last week in an exclusive briefing. “The EMEA region has been a great performer, with fantastic capabilities and great teams. We’ve given the team a lot of resources, and customers have responded. It’s a familiar story, because it has also happened in other regions.”

Dell was talking at the end of the Dell Technologies World expo in Las Vegas, which drew a record 15,000 paying delegates this week. The event came in the wake of the company reporting its first quarterly results since relisting on the stock market following the record $67-billion acquisition of storage giants EMC. Revenue for the quarter reached $21.4-billion, up 19% from the previous quarter.

The company also recorded its fifth consecutive quarter of growth in PC shipments, led by the EMEA region, during a period that saw continual decline in PC sales globally, and many rivals exiting emerging markets.

“We’ve all learned that you have to evolve and change what you’re doing to stay relevant. The capabilities we’ve announced at Dell Technologies World this week are highly relevant and totally market oriented towards the demand out there. We’re significantly differentiated relative to our competitors, and our partners see that.”

Aongus Hegarty, president of Dell Technologies for EMEA, said that the region had gone through strong economic growth, which had led to increased demand for information technology. This was reflected in the emergence of numerous start-ups, as well as the expansion of small and medium enterprises.

“In combining Dell and EMC to form Dell Technologies, the collaboration between the two organisations has worked particularly well in all our markets in EMEA,” he said. “Michael has supported us in the Middle East and across Africa, at a time when many technology companies were withdrawing or outsourcing, while we were building up expertise on the ground.

“It’s much more a business discussion than a technology-led conversation. We start with business objectives and challenges.”

The biggest risk in the region, Michael Dell stressed, would be not taking risks.

“To me, risk goes with innovation and success,” he said. “So you have to take risk. Inside many big corporations people talk of risk reduction and risk management but, if you don’t take risks, you won’t innovate and you won’t succeed. It doesn’t mean all risks will be successful: you have to learn quickly, use data, understand what’s working and make adjustments as you go.”

Within the EMEA region, the territory known as META, covering the Middle East, Turkey and Africa, performed especially well. Mohammed Amin, Dell’s senior vice president for the territory, said the company saw 20% growth in the last quarter, and increased its 5000-strong workforce by 900 employees in the past year.

“Some of our competitors closed down in the region or reduced investment or headcount,” he said. “The acquisition of EMC gave us a huge opportunity to serve our customers. Many large customers already wanted to consolidate their vendors, so it was great thing for them when we came together.

“The other important thing was that there was no conflict of product or go to market strategy. Dell had access to so many customers that EMC could not access and vice versa, so combined we had access to a much bigger customer base.”

The South African market saw spectacular performance, propelling the country into the top ten of Dells’ global Digital Transformation Index, which measures business readiness to compete in a digital world. According to Doug Woolley, general manager of Dell Technologies in South Africa, the company holds just under 50% market share in storage hardware, around 40% in servers, and about 22% in personal computing.

“We’ve got a very strong market share position, but I’m less worried about share than how to help customers be competitive,” he said. “It’s about how do you help customers transform. The share looks after itself if you look after customers.”

The company also appears to be differentiated by its response to political uncertainty, which has been a factor in some competitors pulling back from emerging markets.

Said Amin: “We never pull back because of a short-term situation. This is one of our secret sauces. Companies trust that we will be there in good times, but also in tough times.”

The trust of customers, Michael Dell confirmed, was at the heart of the company’s success: “To continue winning their trust, we have to keep reinventing ourselves all the time. That is built into our culture.”

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Broadband gets a helping hand

Behind this week’s news that MTN fibre provider Supersonic has launched a fixed LTE service is an effort to rethink home connectivity, writes ARTHUR GOLDSTUCK

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This week, MTN made its biggest play yet into the market for fibre connections to homes, but its biggest impact may well be within the home.

The mobile operator’s fibre-to-the-home subsidiary, Supersonic, launched a Fixed LTE offering on a month-to-month basis, meaning that homes in areas not yet wired for fibre can receive high-speed broadband. More important, they can get that access at rates that seem unprecedented for mobile data. 

There are two differences from regular packages, however. For one thing, the SIM card that comes with the package only works in specific routers that have to remain plugged into a power supply. For another, the data allocation is split half-half between regular hours and a Night Owl timeframe: the hours between midnight and dawn.

“It just needs users to adjust their internet behaviour a little,” says Calvin Collett, MD of Supersonic. “Conducting massive mobile phone updates or downloading an entire library of Netflix content shouldn’t be prioritised during the day, but should be scheduled for Night Owl data consumption.”

The biggest benefit, aside from pricing, is that one does not have to wait for fibre to arrive in a specific area. While Supersonic’s core business is fixed-line fibre-to-the-home, it is now set to leverage its parent company’s massive mobile data network.

“MTN’s LTE network coverage sits at 95%, after billions of rand was invested in network upgrades in recent years. There is absolutely no reason why those waiting for a fibre connection shouldn’t move to Fixed LTE.”

Collett argues that consumers are far more savvy and well informed of developments in the telecoms space than observers think. They carefully investigate the products and services they choose to spend on, and are looking for the best deals available.

The result is that Supersonic has quietly built up a side business in installing what is called a Mesh Wi-Fi network, consisting of a main Wi-Fi router connected to the standardfibre or LTE or router, and a series of additional access pointscalled plumes, placed in areas of low coverage through ahome.

The plumes – small pods that plug into any power point –connect to one another to expand the network across a wide area. Where traditional WI-FI extenders lose up to half the fibre bandwidth with every extension, the plumes maintain most of the speed regardless of how far the network is extended. All the pods connected to the same router form a single network with the same network name, eliminating the complications Wi-FI extenders usually introduce.

“The traditional Wi-Fi router has replaced the dial up connection, and we’re all happy about this – the infamous dial up tone is ingrained in the brains of anyone over the age of 30,” says Collett. “Wi-Fi revolutionised our way of life as the router gave us access to the internet without directly connecting to a modem. 

“We’ve moved forward, transitioning from ADSL to fibre. While fibre allows for high speed internet access, it is still connected to your Wi-Fi router. Naturally, the further you move away from the hub, the poorer your internet connection will be. Those dead spots around the house can become frustrating when your Wi-Fi signal shows 1 bar and it takes 5 minutes to load a single web page. Mesh Wi-Fi is the solution.”

Collett says he specifically researched a product that looked good, offered app-based management and required no cables. His research led him to Silicon Valley, and the result is the Supersonic Plume Mesh network system.

The drawback is that installation can be complicated for the non-technical consumer. To plug the gap, so to speak, Supersonic sends out technicians who conduct a Wi-Fi sweep of a home and advise how many Plume devices will be needed for 100% coverage. Based on this the technicians make a recommendation for an optimal “smart Wi-Fi”solution. Once installed, though, the network can be monitored and managed from a Supersonic App.

We tried it out and found it was a tale of two experiences. The initial experience was frustrating, as the pods tried to find each other. This is a necessary evil, it seems, as the Plume Mesh network optimises itself over a period of several days. That means the experience at the edge of the network can be very poor at the time of installation. After a few days, however the network was flying.

With a 100Mbps line, the experience next to the main router was around 105 Mbps, both up and down. That in itself was something of a marvel. But the biggest impact was felt at the furthest point from the router: where a Wi-Fi extender had previously delivered speeds of below 10Mbps, download speeds of 80Mbps became not only commonplace, but almost taken for granted.

One of the most useful features of the Plume Mesh is the level of monitoring offered through the Supersonic app. One can observe exactly what devices are connected to which pods – each is given a name, typically of the room, that is visible only through the app.

The biggest surprise of the plume solution is that it has not become a standard solution for Wi-Fi networks everywhere. In an era when we have become deeply dependent on a decent Wi-Fi signal, it has become a necessity rather than a luxury. As a result, home connectivity should be taken far more seriously than merely fobbing consumers off on low-performance extenders. 

MTN seems to have taken this message to heart, rethinking its own approach to home usage.

“Internet access has become the third utility behind electricity and water,” says Collett. “Our goal is to ‘own the home’ but not just by connecting a bunch of devices to a central point. It’s really about how these devices can pioneer habitual change in the home that’s convenient and saves valuable time and money.”

Click here to read about SuperSonic’s pricing.

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Location data key to transforming SA’s transport system

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Location technology can transform South Africa’s transport system – but don’t expect to see self-driving cars on our roads any time soon. What’s more relevant is the need for the public and private sectors to work together more closely to unlock the significant social and economic benefits that more efficient transport and mobility systems would bring to the country, including less congestion and fewer road accidents. 

That was the message from Michael Bültmann, Managing Director, in charge of international relations  atHERE Technologies, a global leader in mapping and location platform services, at an event hosted by the international law firm Covington & Burling in Johannesburg last week, to discuss how digitization could support better mobility, safety and integration in South Africa. 

“Society needs to solve some fundamental challenges, and relevant location data can play a key role in creating a better future for mobility in South Africa. If we know where the goods and people are, and how and why they move, we have the basis for a system that matches demand and supply far more closely, and uses our transport infrastructure more efficiently,” saidBültmann.

“But no company, government or individual can do it all themselves. It’s all about collaborating. If we get real-time data use right, it would have a profound effect on the way the entire economy works: less congestion, fewer accidents, more efficient use of vehicles and public transport, less air pollution, greater quality of life, and potential savings of billions of rands in fuel, time and safer roads.”

Speaking at the event, the CSIR’s Dr Mathetha Mokonyama said that despite the billions of rands pumped into the country’s mass public transport network in recent years, 90% of commuter seats available are still provided by either cars or taxis.

“We have the right to dignity. If you want to see indignity, look at people getting up at 2am to get unreliable transport to a job that only pays R3500 a month. In our country, access to transport is critical for people to make a living, and our focus as a country should be to implement an equitable and just transport system that caters to all sectors of society,” he said.

“It was a pleasure to support the event that brought together so many viewpoints on the question of the effective use of data and location intelligence to enhance the mobility of goods, people and services,” said Robert Kayihura, senior advisor in Covington’s Johannesburg office.  “While the harmonization of regulatory regimes around the continent will take time, a key takeaway from our discussions is the critical need to build a shared vision of the future through consistent public-private dialogue and collaboration in order to accelerate and ensure the sustainable and safe digitization of Africa.”

Paul Vorster, the chief executive of the Intelligent Transport Society of SA (ITSSA), said the effective sharing of data between metros, government and the private sector would ‘go a long way’ to improving the efficiency of existing transport infrastructure.

“The starting point is to improve what we already have. Once we know what we have – that is, data – we can start solving real problems, like knowing where the demand and supply are. But to do this, metros will need to learn from each other, and they often face political hurdles in the process,” he said.

Bültmann said increasing levels of urbanisation across the world were creating the need for cities to better predict, manage and plan future urban movement. Combining and analysing data from different, complementary sources could help South African cities to improve urban planning, relieve congestion and curb pollution for better quality of life.

The event was also attended by Presidential Investment Envoy Phumzile Langeni, the National Planning Commission’s Themba Dlamini; SANRAL’s Alan Robinson; and Dr Rüdiger Lotz, the Deputy Head of Mission at the German Embassy. The guests were welcomed by Witney Schneidman, the head of Covington’s Africa practice and former Deputy Assistant Secretary of State for African Affairs (1997-2001) in the U.S. Government.

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