In the latest third quarter, Dell Technologies channel chief Joyce Mullen says channel partners of the IT infrastructure conglomerate added over 30,000 net new organizations to the company’s customer list.
In the third quarter, Dell Technologies, the parent company of Dell EMC, reported consolidated revenue of $19.6 billion and non-GAAP revenue of $19.9 billion. That resulted in a $533 million operating loss, with non-GAAP operating income of $2.0 billion. The company generated cash flow from operations of $1.6 billion.
Dell EMC specifically saw a two percent growth quarter over quarter, with third quarter revenues of $7.5 billion and operating income of $678 million. Servers and networking revenue were $3.9 billion, an increase of 32 percent year over year and three percent quarter over quarter. Storage revenue remained flat at $3.7 billion quarter over quarter.
Following record revenue and double-digit growth for servers for the second consecutive quarter, Mullen notes Dell EMC is now the leader in terms of both server units and revenue. Dell EMC also recorded triple-digit growth in hyper-converged infrastructure (HCI) sales, which were led by VxRail appliances that come pre-configured with software from Dell EMC sister company VMware.
Mullen declined to elaborate on storage sales beyond noting double-digit growth for Isilon scale-out network-attached storage (NAS) systems and all-flash arrays. But she did say that increasing storage market share continues to be a high priority for Dell EMC.
Other highlights include client systems revenue for the third fiscal quarter of $10 billion, up 8 percent from the same quarter of fiscal 2017. Operating income for client systems was $672 million, a six percent increase.
The channel in 2018, adds Mullen, will also play a critical role in helping Dell Technologies define new competency areas involving, for example, Internet of Things (IoT) solutions that will expand the opportunities for the company’s channel partners.
Overall, Mullen credits the channel played a critical role in driving new sales in the latest quarter.
“We are pleased overall, but not satisfied,” says Mullen.
Dell Technologies thus far has paid down $1.7 billion in debt, and since the close of the EMC transaction paid down $9.7 billion of gross debt. The company ended the quarter with $18 billion in cash and investments recorded on its balance sheet.
The one thing that is apparent is how much the Dell Technologies road back to profitability is dependent on continued success in a channel that not all that long ago many viewed as its arch nemesis.