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Dell Sells Boomi: 4 Biggest Reasons Why

From Project Apex to Dell Technologies’ massive debt, here are four big reasons why Dell is selling its cloud business Boomi to private equity.

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Dell Focused On PCs As Sales Reach All-Time Highs

There’s no question that the global COVID-19 pandemic is causing skyrocketing PC demands both in North America and overseas as the new remote workforce and remote learning worlds continue to take shape. Dell’s Client Solutions Group (CSG) – which includes desktop PCs, Chromebooks, notebooks, thin clients, printers, monitors and accompanying software and security – is hitting all-time highs.

Revenue from Dell CSG generated a record breaking $13.8 billion in its recent fourth quarter 2021, up a 17 percent year over year. Dell shipped a record 50.3 million PC units in calendar year 2020, up 8 percent compared to 2019. This record shipping and sales growth was driven by $9.9 billion in commercial revenue, up 16 percent year over year, along with $3.8 billion in consumer sales, representing an increase of 19 percent.

With PC demand literally off the charts, Dell is looking to focus major R&D and innovation efforts in 2021 and beyond in its CSG business, not Boomi.

When asked if PC sales could potentially decline in 2022, Michael Dell told CRN that he’s bullish on CSG growth this year.

“We believe the PC demand environment will continue to improve, it’s already off to a strong start,” Dell told CRN in March. “It used to be that you would leave your house to go to work or to school or to the store or to entertainment. Now, people have – even as we can now see the other side of the pandemic – people have learned behaviors of the new digital world. It’s work from anywhere, do from anywhere – that world is here to stay. I believe the available opportunity for us is expanding.”

Dell said there’s still millions of children who still need PCs for school. “We estimate 16 million in the United States alone don’t have either the right device or right kind of access,” he said. “There will be great opportunities continuing this year and beyond. We continue to invest in innovation, and we’re focused on the whole workforce enablement, but also technologies like cloud, 5G, AI and all of that gives people much greater flexibility to work and play from anywhere.”

 
 
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