From Dheeraj’s new letter to shareholders :
"Public markets are rightfully paranoid about the future of small-to-mid cap companies that compete with large incumbents. Through this letter, I want to assure our shareholders that the cloud is in its very early journey, just like the vertically integrated PC industry was in the late 80s. The technology industry has inevitably shattered big things into smaller things that also have shorter lifespans. From Mainframes to Unix servers to Intel x86 servers to virtual machines to containers, and from desktops to laptops to smartphones, we’ve constantly miniaturized technology. The public cloud players are building the new Mainframe, i.e., gigantic data centers with large capex investments and multi-year refresh cycles. Data sovereignty (“Laws of the Land”) and data gravity (“Laws of Physics”) will force clouds to be smaller and dispersed.
Xi, like Android and Windows, will be asset-lite, about software, and built with suppliers of smaller data centers. In this decade, we are betting very differently on the architecture of cloud than the hyper-scalers. This suits us well because of our private cloud lineage and software distribution. It also suits us because we believe in all things distributed. It doesn’t hurt that history is on our side.
Finally, I want you to know that velocity is our only friend, and we’ve balanced it well with customer experience. We’re a rare company that has navigated the shifting sands of IT better — and faster — than most other IT players. We simply happen to have a unique trait of bringing it all together with design.
Velocity makes us survive. It also makes us thrive." :