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Edited excerpts from an interview with ET:
How is traditional IT evolving?
Traditional IT, which focuses on delivery of projects and applications and maintenance of infrastructure, is a more stable space today. We have to keep the business running or lights on, but where IT is going today, especially in Dell, is being a partner to the business and driving business strategy and enabling the technology that delivers it.
When a company like Dell undergoes the type of transformation and innovation that we are undergoing - we went from a hardware-centric company to a software, services and complete solutions selling company - that means major transformation and innovations in the IT systems.
How are IT budgets looking for 2013?
The industry standard is down half a percent from the previous year. But at Dell, we have maintained it at the same level. Typically, companies spend 80 per cent of their IT budgets on running the business and 20 per cent on investing in the business through building new IT capability.
In Dell, we've always had a higher percentage of invest-in-the-business at 40 per cent. But with the number of acquisitions we have done, the run-the-business is up a bit now.
What is the next wave after outsourcing and offshoring?
The next wave is focussing around business results. It's the same way we talk to our customers.
What are the problems that need to be solved and how we can come in and solve them? It's not about how you renew servers but how do we transform your IT business. How do we help to enable your business strategy? It's around aligning IT to be part of the business.
How much control does the IT department still have over IT budgets?
'The lines between IT and business have blurred,' Michael (Dell) has said this many times. Whether it comes from the IT budget or the business budget as long as we have a strategy for IT, that's what we focus on and how we are executing that strategy.
So should service providers talk to business heads?
I think that is already happening. But they shouldn't leave out the CIO because at the end of the day, there is integration and there are things the CIO is involved in. So they should talk to both.
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