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Data center News

Dell Partners Deliver $60B In Last Four Quarters

O’Ryan Johnson

The figure represents orders revenue generated over the last 12 months as Dell says it has worked to enable partner sales and offerings around multi-cloud.

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Dell Technologies partners delivered a record $60 billion in orders in the last four financial quarters, as the company became more aligned with its channel in supporting customer needs, company executives told CRN.

“That’s the most we’ve ever seen in Dell Technologies’ history,” said Rola Dagher, Dell’s global channel chief. “We are grateful to have the partners we have by our side. They’ve been amazing.”

Dell Senior Vice President of Global Channel Cheryl Cook said Dell is embracing the same challenges that its partners must as customers shift their focus to business outcomes rather than core infrastructure. She said Dell partners are helping customers navigate this multi-cloud world by creating solutions to address the challenges of securing, moving and processing workloads.

“All of these are really aimed at enabling and empowering our partners to continue to just help our shared customers navigate this complexity,” she said. “We had a lot of validation and a good resonating response from our partners that the strategy is spot on. We couldn’t be more proud, delighted and humbled. We again broke records in Q1, which just continues to underline and validate that the IT demand climate is robust. Michael [Dell] says it best: ‘The world needs more technology, not less.’”

[RELATED: Dell’s Jeff Clarke: ‘IT Demand Is Currently Healthy’]

In the most recent quarter, Dell’s global channel grew 7 percent year over year. Distribution grew 3 percent and client solutions through the channel grew 1 percent, Dagher said. Meanwhile, server solutions through the channel grew 23 percent and storage through the channel grew 8 percent.

“Our rebate payout grew 13 percent year over year, which is amazing,” she said. “We are seeing strong momentum with Apex in the channel. What we have done with Apex is modernizing the way our customers and our partners want to do business with us.”

She said the partners Dell is working with on Apex are developing value-added services on top of Apex services to deliver to customers.

“When we look at digital transformation, is not just a project that you go in and out,” Dagher said. “It’s a journey that we’re on with the customers.”

Dell has new initiatives to enable partners with Flex On Demand, which offers servers, storage, data protection and hyperconverged infrastructure as a service, and has revamped its training processes to provide partners with the tools and capabilities to get to customers as quickly as possible, Dagher said.

“We’re also packaging the resources for partners to include their own sales and marketing material, and that’s based on the feedback we heard from our partners,” Dagher said. “And we are simplifying the engagement process so partners can receive quotes and build proposals a lot quicker.”

For its first fiscal quarter 2023, which ended April 29, Dell reported total revenue of $26.1 billion, up 16 percent over the $22.6 billion the company reported for its first fiscal quarter 2022. That included product revenue of $20.5 billion, up 17 percent, and services revenue of $5.7 billion, up 11 percent.

O’Ryan Johnson

O’Ryan Johnson is a veteran news reporter. He covers the data center beat for CRN and hopes to hear from channel partners about how he can improve his coverage and write the stories they want to read. He can be reached at ojohnson@thechannelcompany.com..

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