Thread regarding Dell Inc. layoffs

People arent buying enough of what the big vendors are selling.

At some point there was probably a white space map for fax machines. And as people started using email the fax companies would have thrown in more and more sales people to push and push harder for fax machines. "Email hurts your eyes" and "paper is natural" and "Faxes cost lest to run than computers" but eventually the fax machines just stopped selling.

They probably had the worlds BEST fax machine too. Colour, all the connections, pretty, could do everything. But no one bought it. Would like to have been a director in the worlds best fax machine company?

The sales reps and printing specialists that were circling that drain (I met a few) were eventually thrown a lifeline to live out their final days in reseller land, basking in the glory that was the old days of fax printing and remembering the annual faxcon event in New Orleans.

This is what the cloud is doing to the Datacenter market and the tiny sc-aps left are fought over by more and more vendors at zero margin. Datacenter vendors could be the best in the world in a rapidly declining market.

It doesnt matter how many sales staff and overlays you hire, what white space analysis and datapoint reviews say. If the customers dont want what you are selling and it is not in their strategic direction they wont buy enough of it to maintain the huge numbers of staff and costs you need them to.

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Post ID: @OP+16Zb7EjB

5 replies (most recent on top)

This is not about Covid - It's about the Cloud!

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Post ID: @1qxt+16Zb7EjB

For the longest time these organizations followed an ethos that if you wanted to up profit you add an incremental sales head (and supporting cast to follow). If your average rep pulled in 1M net add another head and pull in something incrementally less than 1M but greater than nothing. So you are now at 2 sales heads and net 1.8M... and so you add another sales head (and supporting cast) and you are now up to 2.5M say...and repeat and repeat...until this no longer works and you have something like a sales person for every individual contributor at the customers site. At some point this model c-aps out obviously and adding additional head cost outweighs the marginal revenue (if there is any at that point)....and that is perhaps where things stand.

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Post ID: @1lvs+16Zb7EjB

A lot less than 25k

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Post ID: @1omc+16Zb7EjB

Raw truth - it is what is. Take your skills and transfer them to the next hot product.

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Post ID: @1xrr+16Zb7EjB

You are not wrong.

What's crazy is that hyperscale cloud vendors get the job done with so many fewer employees. AWS only has 25,000 employees. How many employees does it take at Dell and VMware to sell datacenter+cloud+edge?

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Post ID: @1gei+16Zb7EjB

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