Following positive demand growth in our fiscal fourth quarter, we expect to gain share year over year in storage when the first-quarter industry share numbers are final. “Storage had a solid quarter as a portion of the Q4 demand (in March). That helped Dell post its sixth consecutive quarter of increased server revenues, although rising DRAM prices pose potential headwinds. The Dell EMC storage business is positioned to equal if not outpace the market average, said Jeff Clarke, a Dell vice chairman of products and operations.Ĭlarke said data centers increasingly want to run software-defined storage to support analytics and similar workloads in a multicloud environment. Research firm IDC projects spending on storage systems will grow nearly 10 percent in the first quarter. Deferred revenue of $21 billion is up more than $3 billion from the year-ago period, due to recurring maintenance contracts and increased customer adoption of Dell’s consumption-based services and software. The Dell EMC storage portfolio is part of the vendor’s Infrastructure Solutions Group (ISG), which also includes PCs, servers and networking. Overall ISG product revenue of $8.7 billion was up 25%, getting a bounce largely from customers using Dell PowerEdge servers to run software-defined storage.Ī strong quarter by VMware generated license revenue of $2 billion last quarter, including double-digit bookings for compute management, end user computing, NSX and VSAN/VxRail. All told, Dell’s debt service is roughly $53 billion, excluding debt related to the Dell Financial Services arm. Non-GAAP operating income was $2 billion, up 42%.Īfter taking on sizable debt to acquire the EMC storage business, Dell has paid down about $13 billion of the financial obligations, including a $2.5 billion payment last week to satisfy investment-grade notes. Dell executives also made off limits for discussion the status of internal talks regarding a potential merger with VMware, the virtualization subsidiary it picked up through EMC.ĭell EMC rides momentum of cloud, software-defined storageĭell’s combined revenue last quarter surged 19% to $21.4 billion.
Only a passing reference was made to sales of the flagship all-flash Dell EMC PowerMax (formerly VMAX), which exited fiscal year 2018 strongly with a $5 billion run rate.