Tag: Dell

Dell quarterly revenue hits $23 billion

Tin box shifter Dell saw its sales rise across the board as quarterly revenue hits $23 billion.

The vendor is now forecasting non-GAAP revenues of between $90.5 billion and $92 billion for its full fiscal year and non-GAAP operating income of between $8.4 billion and $8.8 billion.

Revenues increased by 18 percent in non-GAAP terms to $22.9  billion for the quarter, while non-GAAP operating income hit 13 per cent growth to $2.1 billion. The firm reported a GAAP operating loss of $13 million.

Its Infrastructure Solutions Group increased by 24 percent and Client Solutions Group 13 percent.

Servers and networking swelled 34 percent year on year and storage hit 13 percent sales growth.

VMware meanwhile grew revenues by 11 percent to $2.2  billion and logged $736 million  in operating income.

Dell claims to have pushed a record number of client units in Q2 and saw triple-digit growth for its VxRail and VxRack lines.

Michael Dell in a statement: “We are in the early stages of a global, technology-led investment cycle in which every company is becoming a technology company. As our results indicate, Dell Technologies is perfectly positioned to grow, gain share, drive innovation and be our customers’ best, most trusted partner on the journey to their digital future.”

Dell is currently gearing up to return to the stock exchange, which the firm claims will allow it to simplify its capital structure.

 

Dell sets up an IoT partner programme

banner_220x220Tin box shifter Dell has launched an IoT partner programme alongside its very close chum VMworld.

A spokesDell said the programme will provide pre-tested and pre-validated hardware and software packages from Dell and technology partners.

Ken Mills, general manager of IoT surveillance and security at Dell, said during an online press conference before VMworld opened that IoT is rapidly expanding and the amount of infrastructure needed to support it is growing.

“There is a definite shift in the amount of storage and compute power needed to support this transition.”

The number of connected devices worldwide is expected by some industry observers to be as high as 30 billion by 2020 and to continue to grow from there.

The wide array of devices, systems and sensors and the rapid growth of IoT are challenges for businesses looking to embrace IoT, according to Chris Wolff, who took over as head of global OEM and IoT partnerships at Dell in October 2017.

Wolff said companies often understand there are a lot of things they can do with automation and IoT technologies to help them gain insights into their data and make better business decisions, but they can struggle to take the first step.

She said that getting started wasso daunting because there are so many things IoT theoretically can do at at work.  It is difficult for people to know what to do and have a conversation with the techies to find out what’s possible or feasible for my organisation.

Wolff said there was a fear that a company could “choose the Betamax instead of the VHS”

Dell claimed that it can give customers a complete package by bringing together technologies from its partners and the vendors under its umbrella.

The bundles will be sold entirely through the channel, giving partners not only another solution to offer their customers, but also a new revenue stream to take advantage of as IoT continues to grow in the enterprise.

Wolff said the programme will focus on “enabling reseller partners, who are very good at deploying IT infrastructure and managing that infrastructure to provide that same level of management and security across non-traditional devices such as refrigerator coolers”.

Former Dell EMC UK CEO joins DCC

6v6rdBfd_400x400Former Dell EMC UK chief exec Tim Griffin has joined Exertis parent DCC to head up the firm’s tech division.

Griffin will be responsible for the “strategic direction” of DCC Technology, which trades as Exertis and report to DCC CEO Donal Murphy.

Griffin  left his role as Dell EMC’s UK CEO in November 2016.

In a statement he said: “We have all the foundations in place and the support of DCC to take this amazingly vibrant and successful company to the next level. People make the difference in business and we have very talented and driven teams across our diverse range of technologies. I am looking forward to leading and inspiring these teams to even greater success in the future by broadening our reach and ensuring that our customers and people are our key priorities.”

DCC CEO Murphy added: “This is a key appointment and I am delighted that Tim has accepted the challenge and opportunity to grow our technology distribution business and expand our presence in new and existing territories. He brings extensive international experience and expertise with an emphasis on customer relationships, and a history of creating highly engaged teams aligned to strong company values. I am confident that with the great management we have in place and Tim’s leadership qualities, we have an exciting future ahead.”

Dell says his outfit has become too complicated

Michael DellMichael Dell has told those who are interested in such things that his moves to return Dell to the stock exchange were part of a cunning plan to simplify the business.

In an interview with CNBC, inside the New York Stock Exchange, Michael Dell (pictured) said the current structure is “too complicated” and the move will allow the firm to simplify the structure that currently sees its trade as a tracking stock related to VMware’s performance.

On Monday Dell Technologies announced that it would be relisted as a public company, with VMware remaining independent.

“We have an extraordinary business that’s doing incredibly well”, Dell’s Dell said.

“We brought together the best assets of the industry, we have invested heavily, we changed the trajectory considerably, and if you look at the original businesses that we started with, we’ve had 21 quarters in a row of growth and share in those businesses.

“In the last five years, a lot has changed. We have completely transformed the business, become the essential infrastructure company [and] really changed the profile nature of the company in terms of our capabilities.

“This is about simplifying our capital structure and exposing the value that we’ve created to shareholders.”

 

Dell to go public again

Michael DellDell is set to go public by the end of the year after rejecting a plan to merge with subsidiary VMware.

The vendor has announced plans to buy out holders of publicly listed DVMT stock – tracking stock that reflects the performance of VMware – using a mix of Dell stocks and cash. Dell has stressed that VMware itself is expected to be unaffected.

“VMware maintains its independence as a separate publicly traded company while Dell Technologies will continue to own 81 percent of VMware common stock”, said Dell in a statement.

This contradicts statements from Dell’s CEO and founder, who has often spoken publicly about the benefits the vendor reaped from going private in 2013. At the time, the deal cost Michael Dell and private equity house Silver Lake Partners $24.9 billion.

Since going private, Dell has invested heavily in expanding its business selling hardware, software, and services for data centres. In 2016, it paid a record-breaking $67 billion for the storage hardware giant EMC, including EMC’s stakes in business software companies VMware and Pivotal, which will remain independent. In filings with the Securities and Exchange Commission, Dell now describes itself as “a strategically aligned family of businesses”. One thing hasn’t changed: Founder and CEO Michael Dell owns a controlling stake in the company.

During a conference call, Dell CFO Tom Sweet said the deal will simplify the company’s ownership structure and “enable Dell Technologies to grow into an even stronger company”.

Dell is going public in a relatively strong position, says Craig Lowery, a research director at the industry analysis firm Gartner and former Dell executive. But there’s a good chance it won’t be in such a strong position in the future as cloud computing eats into its data centre business.

 

Sarah Shields promoted to Europe

sarah-shields-new-620x350Sarah Shields is to become Dell EMC’s new VP of enterprise channel, Europe, and the outfit now needs someone to fill her current UK role.

Shields will now work with partners targeting large enterprise accounts across Europe. Large deals are very much outcome orientated and she thinks they are a great opportunity for partners that want to hit that large base of enterprise customers.

Shields said she is currently in the process of putting together a team to work with her in her new role, but said she will not transition until a replacement for her current role (VP and GM of Dell EMC UKI channels) has been found. The move will see Dell EMC without a heavy weight leader in the UK.

A shortlist of potential candidates has been drawn up, but Shields encouraged people to apply for the role. She stressed that the UK will remain important to her in her new position.

In the new role Shields will report into Dell EMC’s senior VP for EMEA Michael Collins, as she does  now.

Server sales are up due to supply shortages

HP-MicroServerWorldwide server revenues grow by a third but while that is a good thing for vendors it is more due to supply shortages, according to analyst outfit Gartner group.

Apparently a shortage in components for server hardware, alongside currency fluctuations, has driven up the cost of servers in EMEA.

Worldwide server revenue increased 33.4 percent in the first quarter of the year and shipments grew 17.3 percent  year over year.

Adrian O’Connell, research director at Gartner, said the EMEA server market’s strong start to 2018 is largely driven by scarcity of materials increasing the cost of gear.

“The cost of certain components is increasing due to supply shortages, and this is compounded by recent currency volatility increasing the figures for revenue when measured in US dollars. The very modest rate of shipment growth demonstrates the effects of system pricing”, he said.

In EMEA, this caused revenue to grow by almost a third year-on-year to $3.7 billion for the quarter, while server shipments totalled just 517,000 units, an increase of only 2.7 percent  year-on-year.

Analysts said that ongoing supply constraints in memory would continue into the second half of 2018, and that this is affecting the market and driving most revenue growth.

Dell EMC experienced a huge 51.4 percent revenue growth in the first quarter of 2018, widening the gap between it and second-placed HPE. Dell EMC recorded a 21.5 percent market share, followed closely by HPE with 19.9 percent  of the market.

In EMEA, HPE maintained its primary spot, but it was third-placed Lenovo that had the strongest growth of 70 percent, Gartner said. This strong growth is partly due to comparison with a weak first quarter in 2017, as Lenovo’s business has been declining since the System X acquisition.

Dell EMC saw the second strongest growth rate of the top five vendors. “Dell EMC continues to perform well in EMEA”, said O’Connell. “The first quarter is usually a good quarter for Dell EMC, but it’s attained a record revenue share level in in the first quarter of 2018 and reduced the gap between itself and HPE to under 10 percent now.”

Gartner said the modest shipment growth rates suggest that market demand hasn’t increased much, and that ongoing memory supply constraints would continue into the second half of 2018.
“The very positive revenue performance, however, along with strong adoption at the start of this upgrade cycle, means it is at least a much more positive start to 2018 than we saw at the start of 2017”, said the report.

Dell is now the king of storage

michael-dell-2Grey tin box shifter Dell is officially the King of the Storage World after his outfit moved past Hewlett Packard Enterprise (HPE) as the largest enterprise storage vendor in the world.

Beancounters at IDC have added up some numbers and divided by their shoe size and reached the conclusion that Dell had a 21.6 percent market share in Q1 of 2018, compared to HPE’s 17.7 percent.

Dell posted year-on-year growth of 43 percent for the quarter, with HPE’s share growing 18 percent.

IDC research vice president Eric Sheppard said: “This was a quarter of exceptional growth that can be attributed to multiple factors.

“Demand for public cloud resources and a global enterprise infrastructure refresh were two crucial drivers of new enterprise storage investments around the world.

“Solutions most commonly sought after in today’s enterprise storage systems are those that help drive new levels of data centre efficiency, operational simplicity, and comprehensive support for next-generation workloads.”

IBM was the only vendor in the top five to see its revenue drop year on year, declining 15 percent.

Dell maintained its market lead in the external storage systems market, with a share of 32.9 percent compared to second-placed NetApp’s 14.2 percent.

HPE wades into Dell EMC’s roadmap

Hereford_Mappa_Mundi_1300HPE Chief Sales Officer Phil Davis has attacked Dell EMC’s storage product plans saying it is unclear which products are for the axe.

Writing in his bog, Davis said that more than two years after the EMC acquisition, Dell is still in the midst of churn and transition, and despite the promise that its product roadmaps would not change drastically.

“The one thing that is clear is that Dell EMC’s storage roadmap is changing; unfortunately for customers, which products will survive is uncertain.”

He added that even with the Dell EMC “product rationalisation” there is still a lot of confusion.

“Back in 2016, when Dell’s EMC acquisition was completed, the company told customers and partners in a letter, ‘because our combination is very complimentary. We do not expect any changes in the product roadmaps except for new products we create that bring all of our innovation together,'” said Davis, who headed up Dell’s enterprise solutions business before joining HPE four years ago.

“Yet today, we see a different reality with Dell EMC suggesting they may reduce their mid-range offering from four products to a single product — leading to portfolio uncertainty. This presents a challenge for customers because confidence in their storage partner is paramount and that can only start with a clear product roadmap.”

Dell worries about Huawei

wfxclbexksl44fd3lpoeDell has suddenly found a serious rival in the Chinese outfit Huawei.

Dell’s global channel boss Joyce Mullen told the assembled throngs at Dell Technologies World, that Huawei has been “growing like crazy in multiple countries” in the last few years, and predicted that the Chinese vendor would “keep us on our toes for a long time”.

She said that Dell’s added breadth and scale since acquiring EMC and bringing its seven business units together have not made it impervious to the competition and she was worried about a lot of competitors.

“We have to be mindful of the companies that are trying to be as broad as we are. There are a couple out there – maybe they’re not our traditional competitors we think about – but, for example, Huawei is a super-interesting competitor that is going to keep us on our toes for a long time.

“We don’t see them as much in the US, but they’re growing like crazy in multiple countries.We are also potentially vulnerable to specialists. I think about a lot of specialists targeting our server business, a lot of specialists targeting our storage business and our data protection business – all that stuff.”

Last year, Huawei announced plans to launch three PC models to the consumer market, putting the vendor in direct competition with incumbents Dell, HP and Lenovo. Reuters reported that Huawei plans to launch its PCs into 12 countries globally.

Fortunately for Dell, the Chinese vendor has found itself ostracised from the US market over national security concerns. Indeed, in 2017, the Americas was the only region that saw declines for Huawei as revenues fell by 11 percent.

 

Invest in AI suggests Dell

michael-dell-2Michael Dell told the assorted throngs at Dell Technologies World that they needed to splash out on AI and data. Well he would, wouldn’t he?

Speaking to a room of more than 14,000 delegates including 5,000 channel representatives in Las Vegas, Dell said organisations were going to lose their competitive edge if they didn’t implement AI and machine learning to use data.

“To be competitive in the future, you have got to use software and data and AI. Businesses are starting to use AI and machine learning to use that data much more effectively… Data helps make a product or a solution better, and this allows a company to attract more customers, which then results in more data, and the cycle repeats itself.”

He added: “AI is your rocket ship and data is the fuel for your rocket. If you know how to use it, your data will become your most valuable asset – even more valuable than your applications.”

Dell thought his PC business would continue to thrive despite a push towards emerging technologies such as AI and IoT.

Michael Dell recounted IBM’s departure from the PC business more than 20 years ago. Dell’s CEO said that at the time Biggish Blue declared the beginning of a post-PC era.

“Our PC business is rocking. In the last five years, every year and every quarter we have gained share, and we expect to do so again this quarter. It has been 20 years since IBM declared the post-PC era. Since then, four billion PCs have been sold, so maybe they got that bit wrong. But what they got right is that computing would expand to include embedded devices.”

Dancing Dell spins and IPOs Pivotal

61275a35f34cd5218929e2ca03610d36Dell’s Pivotal Software has filed for an initial public offering with the US Securities and Exchange Commission.

The cloud outfit provides a platform for software development and wants to raise $100m by floating.

Pivotal was spun out of EMC and VMware in 2013 before the merger in 2016 brought EMC and all of its subsidiaries under Dell’s ownership.

GE, Ford and Microsoft have each made a “major investment” in Pivotal over recent years, according to Pivotal’s website, giving each a stake in the vendor.

Pivotal reported revenues of $259 million in 2018 up 22 per cent on the previous year.  However, it is still making a  net loss of $163.5 million.

Dell is currently the majority shareholder and will retain its controlling stake after the IPO via its subsidiaries, the filing said.

 

Dell talks up on-premise clouds

michael-dell-2Grey box shifter CEO Michael Dell said that software-defined data centre on-premises solutions are more cost effective compared to the public cloud.

He said that when you automate and modernise the infrastructure, software-define everything, and move up to the platform level on predictable workloads, an on-premises solution is much more cost-effective.

Public cloud vendors have built software-defined/automated IT services creating an attractive interface for developers; those great technological advances are “not unique to the public cloud.

The idea of automating and software-defining everything, and autonomous infrastructure operations of is occurring all across the computing spectrum. It’s happening in the private clouds; it’s happening at the edge, arriving at the distributed core, public clouds, Software-as-a-Service, managed services – everybody’s going in that direction, Dell said.

Dell said the issue of the public vs private cloud is a workload-dependent discussion. He pointed to Dell Technologies’ massive deferred revenue growth as evidence of the rise of on-premises private cloud/hybrid cloud momentum.

Solution providers said they could typically deliver on-premises private cloud/software-defined data centre solutions for enterprises that are at minimum 40 percent cheaper than public cloud.

 

Jericho blows trumpets on VMware Dell merger plan

indexJericho Capital has penned a stiff missive attacking a potential deal that would see VMware acquire Dell.

For those who came in late, Jericho is one of  VMware’s largest shareholders rather hacked off that it might be considering a reverse merger that would see it acquire “dead weight” Dell.

Jericho owns about 1.8 percent of VMware, has made the letter public today, in which it claims that the prospective deal would “likely lead to the significant destruction of shareholder value”.

Parent company Dell has confirmed that it is considering some restructuring options, among them the possibility that VMware acquires Dell or Dell goes public.

Dell owns around 82 percent of VMware but is obliged to declare any potential changes in ownership because VMware is publicly listed.

“There is no doubt in our mind that a reverse merger of Dell into VMware would be a terrible deal for our shareholders”, the letter read.

“Even the most casual observer can see that VMW gains nothing by saddling the company’s faster growth, net cash, highly strategic software business with the dead weight of Dell’s slower growth, heavily debt-laden, legacy hardware-dependent entity.”

Jericho pointed out that VMware’s share price has been “battered” since rumours of the merger broke, falling as much as 28 percent over the following weeks. It did not like the idea that the deal would “effectively amount to a “bailout of Dell and be highly detrimental to VMW shareholders”.

Instead, Jericho suggested five alternative acquisitions targets for VMware: Red Hat, Palo Alto Networks, Splunk, Tanium and Rubrik.

These vendors, it claimed, “have a more compelling acquisition rationale than an acquisition of Dell”.

 

Gelsinger keeps stumm about Dell takeover

Pat-Gelsinger-300x199For a bloke who might be set to take over Dell, VMware boss “Kicking” Pat Gelsinger is in no mood to talk about it.

When chatting on an earnings call, Gelsinger said he would not comment on “rumours” that VMware could acquire Dell in a reverse merger, after Dell confirmed in February that it was exploring various options.

However, analysts think the reverse merger idea is rather a good one, and the rumours are somewhat more than that.  Gelsinger is not exactly forthcoming and no one wants to get on the wrong side of his mighty boot.

VMware is doing quite well. For the three months ending 2 February, VMware saw revenue jump 14 percent year on year to $2.31 billion. GAAP losses were $440 million (compared with a GAAP profit of $441 million in 2016) as a result of a one-off $970 million tax bill.

Hybrid cloud and software-as-a-service accounted for eight per cent of VMware’s total revenue.

“We are very pleased with customer enthusiasm for our cloud strategy. We believe we have the world’s most complete and capable hybrid cloud architecture, uniquely offering customers freedom and control in their infrastructure decisions.

“We are also pleased with the traction the VMware Cloud Provider Programme continues to gain. The VMware Cloud Provider Programme achieved an annual revenue growth rate of over 30 per cent in the fiscal year 2018.

“We are also experiencing great global customer momentum with our VMware Cloud for IBM with customers such as Amdocs, Ricoh and Vodafone.”

Gelsinger also highlighted the future importance of VMware’s partnership with Amazon Web Services (AWS), which recently launched in the US. The CEO said the service is set to launch in Europe next week.

“The VMware Cloud on AWS continues to get great resonance from our customers, and customers see this idea of the best of public and the best of private coming together as a very powerful force”, he said.

“In many cases, it’s this unique way for them to accelerate their move to the cloud without disrupting their applications – being able to do this in a seamless hybrid way to move into the public and back to the private cloud.

“From the business, as we said, it’s not material this year, and it’s starting to build up. We also see that, given it’s a subscription business, that will also delay the direct fiscal impact.”