Everything is going surprisingly well for Dell. When IDC said PC sales were starting to decline in April, Dell announced that its sales had actually increased by 22%.
Despite component shortages that have prevented vendors from meeting market demands for data center equipment – servers, storage and PCs – Dell has seen server sales increase by 16% and storage array sales by 9%. These figures are taken from Dell’s quarterly results and are annual figures.
Globally, Dell’s revenue in the last quarter – through April – was $26.1 billion, up 16% from the same quarter a year earlier.
Dell’s Consumer Solutions Group – mostly PCs – drives the brand, with quarterly revenue of $15.6 billion. Of this amount, business PC sales account for $12 billion and consumer PC sales for $3.6 billion.
According to various analysts, the good performance of Dell’s business PC offer is due to bundles consisting of hardware, a full suite of software and the entire range of peripherals. According to the IDC ranking, Dell is number three in this market (13.7% market share) after Lenovo (18.3%) and HPE (15.8%), but ahead of Apple (7.2%) and Asus and Acer (5.5% each).
At the same time, Dell’s infrastructure solutions group achieved revenue of $9.3 billion. This is split between $4.2 billion for storage services and $5 billion for servers and networking equipment.
The various analysts have not published recent figures to compare Dell’s sales with those of data center competitors. But IDC noted that infrastructure trends in the data center are unfolding along three axes, namely: service provider investments in the cloud; business investment in hybrid services; and investment in private data centers.
According to 2021 figures, cloud hosts invest the most in infrastructure – $73.9 billion for the year, and an 8.8% increase from 2020 – but largely by designing their own material services and therefore not frequenting the usual suppliers.
During the same period, companies invested $59.6 billion in servers and storage arrays for their data centers (4.2% more than in 2020) and $51.4 billion in hybrid services.
These hybrid solutions correspond to the bundled offers marketed by the incumbent infrastructure provider, namely data center equipment and public cloud services, all sold in “cloud mode” and in the form of a monthly subscription. In this space, Dell has focused its efforts with its Apex program.
An alternative supply chain
“The fact is that today, business demand for data center infrastructure is very strong, after two years of the pandemic during which customers have tightened their belts,” said the vice president and co. -Dell’s chief operating officer, Jeff Clarke, during a conference call with analysts.
“In other words, like everyone else, we are suffering from component supply problems due to the closure of Chinese ports.
“So we were forced to find alternatives to our usual supply chains. This is why corporate clients come to us. They know we can provide them as we promised,” he added, without specifying what those alternatives are.
According to Clarke, next quarter revenue is expected to be between $26.1 and $27.1 billion, about 10% higher than last year. He predicted that the current fiscal year should reach a turnover of 101.2 billion dollars and an increase of 6% compared to the previous year.