Big tech trends benefitting Dell

Dell shares its third-quarter numbers and talks up future prospects with mega trends touching most of its portfolio

Dell has talked of a strength in the technology market that has not only helped the firm with its own third-quarter results, but continues to support reasons to be optimistic about the future.

The firm unveiled its third-quarter numbers up to 30 October, a period that has covered months affected by the global coronavirus pandemic, with revenues up 3% to $23.5bn.

Jeff Clarke, vice-chairman and COO at Dell Technologies, said that digital transformation and the need for customers to develop their systems remained in place, even with Covid-19.

“The mega technology trends that we have long called out are accelerating, and these trends are highly favourable to Dell Technologies. We are uniquely positioned to win in the growing markets of 2020, and we are making the right investments and innovating to capture the growing markets of tomorrow,” he told analysts on the firm’s results earning call.

He said that a range of technologies were in demand and played to Dell’s strengths, including cyber security, 5G infrastructure, digital experiences and data management.

The firm recently announced Project Apex, a unification of its as-a-service and cloud capabilities. Clarke added that it was important that the company could respond to customer demands for more flexible consumption models.

One of the challenges has been getting partners out in front of customers, and that has been a potential issue with some of the more complex technology systems.

Clarke was asked if that had been problematic with Dell’s PowerStore storage range, and he revealed that the channel had been instrumental in helping to keep customers informed.

“We put a large number of seat units in front of our largest channel partners across the globe. They are 95% up and running in front of customers at our channel partners. Today, we put an active try-and-buy programme in place. We have our team out delivering units to customers,” said Clarke.

Patrick Moorhead, from Moor Insights & Strategy, said that the third-quarter numbers reflected the strength of the vendor’s wide portfolio.

“Dell had a very solid [third quarter], increasing revenue 3% in a very uncertain time. I believe its revenue growth is a testament to its diversity across PC, infrastructure, software and cloud,” he said.

“The PC group led the revenue (+8%) and operating income ($1bn) charge driven by consumer (+14) and commercial (+5%) personal computers. I am pleased to see growth in both the premium and higher revenue and margin gaming systems and XPS.

“The biggest surprise for me was on commercial PCs that grew at a time that IT was pulling back. That requires a little more analysis on inventories and time spans to get a clearer picture, but this is a positive sign,” he added.

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