Dell Technologies: Business Servers and Storage Carried Us Through Rough Third Quarter

Dell PCs Provide Above-Average Infrastructure Performance

Despite the fact that there was a low demand for Dell PCs, the company was nevertheless able to provide above-average infrastructure performance. This was made possible by a reduced server backlog as well as reduced costs for shipping and parts.

Dell Technologies, a significant provider of server storage and infrastructure, stated that its data center and server operations helped it make it through the third quarter, which saw a decline in revenue of 6% overall and a decrease in sales of personal computers to consumers of 30%.

Executives from Dell located in Round Rock, Texas, stated that the company was able to avert more negative results because to the reliability of its supply chain.

Due to the high level of dependability of their products, Dell was able to take advantage of lower shipping and component costs, as well as smooth out backlogs in the production of PCs and other infrastructure equipment.

Dell Outpaces the Competition in Achieving Component Deflation

“With Q3 being deflationary and our lower inventory approach,” Chuck Whitten, co-Chief Operating Officer of Dell, said to analysts on the call, “we can get to component deflation faster than the rest of the industry.” As a direct result of the stringent cost controls that we installed in response to the demand signal, we were also able to reduce the amount that we spend on operating expenses (OpEx).

According to Whitten, Dell has been able to save $300 million each quarter by placing a hiring freeze and maintaining rigorous budgeting. Jeff Clarke, who serves as co-CEO of the company, claims that it was successful in capitalizing on many other market conditions.

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Clarke underlined that there has been a decrease in the costs associated with logistics. We are able to start sending things out to sea because we currently have more supplies than we require at this time.

We are able to take it a step or two easier. People are opting for rapid air travel less frequently all the time.

Our algorithm for determining input costs takes all of these factors into consideration, which has contributed to an improvement in our quarterly results.

According to Scott Winslow, CEO of Dell Titanium Partner Winslow Technology Group in Waltham, Massachusetts, while his company’s business with Dell for commercial PCs has gone down, infrastructure sales have been good this year thanks to Dell’s storage solutions.

Winslow said that while his company’s business with Dell for commercial PCs has gone down, he is optimistic about the company’s future.

CRN was informed by Winslow Technology Group, a Dell partner, that there was an increase in demand for the company’s server, storage, and networking solutions during the first three quarters of the company’s fiscal year.

Dell’s Storage Solutions Prove Popular with Winslow Technology Group

The storage solutions provided by Dell PowerStore have proven to be an excellent choice for WTG. During this time, our Dell CSG business has also been growing, albeit at a more gradual pace in comparison to the previous year.

During Monday’s earnings call, the top executives at Dell discussed the company’s plans for 2024, its public cloud service APEX, and how improved supply chain and inventory management helped make up for a difficult quarter.


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