Dell Technologies Sees Server Sales Soar in Q3

Dell Technologies

In the third quarter, Dell Technologies saw its server as well as its networking solutions sales soar. Revenue for the third quarter was a record $9.6 billion for Dell’s Infrastructure Solutions Group, up 12% from the same period last year. Third quarter overall revenue for the vendor was down 6 percent at $24.7 billion while overall operating income was up 68 percent at a record $1.8 billion.

Jeff Clarke, Vice Chairman and Co-Chief Operating Officer at Dell Technologies
“Our innovation engine is operating at full throttle in strategic areas like edge, multicloud and as-a-Service,” said Jeff Clarke, Vice Chairman and Co-Chief Operating Officer at Dell Technologies.

Dell’s Infrastructure Solutions Group including servers and networking solutions reported record third quarter sales of $9.6 billion, an increase of 12 percent over the same period last year and its eighth straight quarter of year-over-year growth.

Revenue from servers and networking increased 14 percent to $5.2 billion. Dell’s storage solutions sales increased 11 percent to $4.4 billion. Operating income was a record $1.4 billion, up 54 percent and approximately 14.3 percent of Infrastructure Solutions Group revenue.

“We played our hand in Q3 exceptionally well; it’s what we do,” said Jeff Clarke, Vice Chairman and Co-Chief Operating Officer at Dell Technologies. “We reduced backlog to meet customer needs and deliver record business results, including record third quarter ISG revenue of $9.6 billion. At the same time, our innovation engine is operating at full throttle in strategic areas like edge, multicloud and as-a-Service.”

Block Storage, As-a-Service 

Key areas of innovation for Dell during Q3 included:

  • With the introduction of Cybersecurity Advisory Services and a new vulnerability monitoring service, Dell is now able to provide businesses the tools and practical information they might need to safeguard their IT infrastructures.
  • The AWS Marketplace now offers Dell PowerFlex block storage as part of the ongoing APEX momentum.
  • Customers can now transition to an as-a-Service environment “with ease” thanks to Dell’s addition of a customer-managed option for APEX Data Storage Services.
  • With Zero Trust enabled security protection, Dell unveiled Project Frontier, an edge operations software platform that centralizes customer software applications, operational technologies, and multicloud environments.

“We executed Q3 with focus and delivered strong operating results, successfully navigating the challenging environment we highlighted in our Q2 earnings call,” said Chuck Whitten, Co-Chief Operating Officer at Dell Technologies. “With the industry’s largest direct sales force and our technology ecosystem, we anticipated the changing landscape and responded quickly. We combatted slower demand and drove record profitability, with record operating income of $1.8 billion.”