Dell Technologies is giving channel partners credit for signing up 63,200 new customers in the last fiscal year following the release of fourth-quarter results that saw revenues grow eight percent year over year to $23.8 billion.
A total of 16,100 of those customers were signed up in the last quarter alone, says Cheryl Cook, senior vice president for global partner marketing at Dell EMC.
Overall, Dell Technologies saw revenue in fiscal 2019 grow to $90.6 billion, a 15 percent gain. For the fiscal year, Dell Technologies reported a net loss of $2.1 billion. That loss is substantially less than previous years as Dell Technologies appears to be riding a wave of server upgrades in on-premises IT environments. Those server upgrades are coming at a time when conventional wisdom holds most application workloads should be moving on to public clouds.
“The results validate it’s a multi-cloud, hybrid cloud world,” says Cook.
Not only are many workloads continuing to remain on-premises, Cook notes many workloads initially deployed in the cloud are being re-patriated to on-premises servers.
Overall, Dell Technologies reported that servers and networking delivered 28 percent revenue growth for the fiscal year, which is the ninth consecutive quarter of revenue growth. Other major contributors to growth include the company’s VMware subsidiary, which generated revenues of $2.6 billion for the quarter, up 17 percent, and $9.1 billion for the full year.
Dell Technologies is also seeing more modest growth in storage and client systems as well, which Cook attributed to the company and its partners being more successful at getting new and existing customers to extend their purchasing commitments to Dell. Those efforts involve getting existing server customers to, for example, buy Dell storage or convincing customers that buy Dell clients to buy Dell servers and storage at the same time, says Cook.
Channel partners that sell offerings that span more than three lines of Dell Technologies business units typically enjoy revenues that are 11 times greater than partners that focus on only one product area, notes Cook.
Dell Technologies has also seen a significant uptick in the number of registered deals being approved for partners as it continues to focus on simplifying its channel programs, says Cook. Dell Technologies approved 120,000 registered deals in the fourth quarter, which suggests the company’s sales pipeline going into 2020 remains strong. Dell Technologies also issued over 154,000 competencies to channel partners spanning a wide range of specializations in the fourth quarter.
Overall, Dell Technologies and its partners appear to be making the most of the cross-selling opportunities that manifest themselves across its broad portfolio. The challenge now is to make sure the company is not only profitable in 2020, but also reduces the size of its debt in the wake of going first going private and then once again becoming a public entity.
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