Dell Technologies: Revenue Rises As Michael Eyes Public Market
Dell Technologies reported stronger-than-expected Q2 fiscal 2019 revenues Thursday morning, and raised its revenue outlook for the rest of this fiscal year. Those are the latest signs that the enterprise technology giant, led by Michael Dell, is gaining momentum ahead of a proposed ownership shift to public markets.
Key financial metrics for Q2 fiscal 2019 include:
- Revenue rose 18 percent to $22.9 billion.
- Solutions Group revenue was $9.2 billion, a 24 percent increase. Storage ($4.2 billion, up 13 percent), servers and networking ($5.1 billion, up 34 percent) all showed momentum.
- Client Solutions Group revenue for the second quarter was $11.1 billion, up 13 percent. Commercial revenue (up 13 percent to $8.1 billion) and Consumer revenue (up 14 percent to $3.0 billion) in the group both showed momentum.
The company is feeling bullish about its business, and raised its financial guidance for the rest of its fiscal year 2019.
Public Cloud Services vs. On-Premises Systems
In recent months, CEO Michael Dell has insisted that enterprises are rethinking their public cloud strategies, and moving many public cloud workloads back to new, modern on-premises systems.
ChannelE2E believes Dell’s assertions are overstated, given the massive growth of Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) along with SaaS applications from Salesforce, Workday and others.
Still, there’s no denying the company’s data center hardware sales — across servers, storage and networking — are generating strong growth. No doubt, customers and partners are embracing hyperconverged infrastructure (HCI), software-defined data centers (SDDC), and hybrid cloud systems.
Return to Public Markets?
Meanwhile, Michael Dell is attempting to return the company to public markets. But shareholder advocate Elliot Management has been lobbying against the proposed financial terms.