Dell Technologies in the wake of the Dell Technologies World 2019 conference saw an 80 percent increase in the number of certification credentials attained by partners. Those 12,000 partner certifications represent a bell weather of future channel performance at a time when Dell Technologies is now driving more business through channel partners than ever.
Overall, Dell Technologies in its most recent quarter saw first-quarter revenue was $21.9 billion, up 3%, and non-GAAP revenue was $22.0 billion, up 2% over the same period in the prior year. Dell Technologies generated operating income of $550 million, compared to an operating loss of $153 million last year, and non-GAAP operating income of $2.2 billion, compared to $2.0 billion last year.
Measuring Dell Technologies overall momentum has become more challenging as more organizations embrace hyperconverged infrastructure (HCI) platforms, which replaces a traditional server with a platform that unifies compute and storage. Dell Technologies tracks HCI as part of its storage business unit. The company’s Infrastructure Solutions Group saw revenues for the first quarter of $8.2 billion, a 5% decrease year-over-year. That was caused by a 1% decrease in storage revenue to $4.0 billion and a 9% in server and networking revenue to $4.2 billion.
Within the channel, however, the sales mix is significantly different. Channel revenue increased 16% during the quarter, with partners placing more than $51 billion in orders during the quarter, says Cheryl Cook, senior vice president for global partner marketing. Channel server revenue was up 18%, while storage was up 26% year over year. Revenue generated via distributors increased 16% year over year.
“We took share in all categories,” says Cook.
The one thing that is clear is VMware as a subsidiary of Dell Technologies continues to drive a lot of the growth. VMware revenue was $2.3 billion for the first quarter, up 13% with operating income was $614 million, up 27% year over year.
It remains to be seen how well Dell Technologies can leverage VMware to sell its own infrastructure. But as the business continues to evolve a much higher percentage of the revenues being generated by Dell Technologies is clearly moving through the channel.
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