Dave Vellante Profile picture
Sep 6, 2018 16 tweets 10 min read Twitter logo Read on Twitter
Takeaways from @Dell financial call today... Dell is taking share across the board...will do $90-$92B in revenue this fy. Setting up for tough compare for next year. Dell citing favorable spending environment, assumptions are 2X GDP for IT spend...
Dell citing attractiveness of 1-stop shopping (end-to-end - edge->core->cloud) I surmise their cloud is VMware with AWS...Since EMC transaction, Dell is posturing as a much more strategic supplier than either Dell or EMC was as an independent company.
new sales comp plans implemented by Dell - @JClarkeatDell fingerprints seen on the enterprise storage biz which he took over about 1 yr ago. Storage was sucking wind post EMC transaction & is now gaining share. I think IDC numbers coming out soon showing Dell EMC gains
My take: This is still largely a VMware story. Without VMware this end-to-end story is a big yawn...With VMware this company has a software profit model that throws of ~1/2 the company's profits, a much stronger cloud story and a software asset that is a crown jewel...
Client business has been an upside surprise since before the EMC transaction and that has been a real tailwind for Dell. Not many folks really forecast that trend & it's created a nice draft for Dell.
Dell is also gaining on the server side and is #1. I talked to @matteastwood of IDC last week & he pointed out that @HPE is out of China (it has a JV now) & HPE has basically exited Tier 1 hyperscale market. Both low margin, highly competitive businesses in which Dell competes.
My take: Dell is a very well run company. Always has been - but it's m&a run pre-EMC just didn't cut it and didn't allow the company to transform quickly enough. EMC transaction gave Dell a true enterprise portfolio
Dell's CFO Tom Sweet indicated that they can't really discern yet how much of ISG's growth is coming from cyclical data center modernization versus emerging workloads around AI and ML...I'd posit they're probably related... i.e. co's preparing for #Digital & planning ahead
.@michaeldell perspective on the pendulum swing toward the edge - did he see it coming? video.cube365.net/c/908911 #edge #iot #cloud #iotcloud #waves #Futures
Jeff Clarke indicated that Dell EMC has more midrange storage products than they'd like to have long-term. I agree - Dell still needs to simplify its midrange portfolio while at the same time not alienating customers that bet on existing products.
Dell just introduced a new data protection appliance - #dataprotection was one of the hottest topics at #VMworld 2018. All the startups and upcomers like @Cohesity @rubrikInc @Veeam are aiming at Dell EMC's data protection installed base and Dell has to keep investing there
On another note, Dell sees components as potentially deflationary this yr. would be good news for margins. Component pricing has been a headwind for years. Of course when you talk to @MicronTech you get a different story. They feel they have a good handle on supply/demand #dram
What are your thoughts on Dell's progress, its going public, Dell EMC, the infrastructure market? Real momentum? VMware hiding the warts or real deal? @sarbjeetjohal @furrier @ascohen @stu @CTOAdvisor @tcrawford @dfloyer @plburris @porterdeleon @latoga @tom_poole @ekaulberg
Correcting an errata on my rant this morning - VMware is about 1/3 of Dell's operating profit based on company reports...Still an awesome asset.
I remember right after the announced merger I pegged Dell blended gross margin w EMC at ~33% - up from the high teens (if I recall correctly) before Dell went private. In 2 years a completely new margin profile with VMware obviously a huge contributor...
Dell EMC with VMware is what HP wanted to be but couldn't pull it off with all the misfit toys (software & services) baggage it amassed over the years...

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