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Michael Dell On The Impact of China Tariffs, Public Cloud Backlash And VMware Synergies

"As much as 80 percent of the customers across all segments – small, medium, large – are reporting that they're repatriating workloads back to on-premise systems because of cost, performance and security," said Dell Technologies CEO Michael Dell in an interview with CRN.

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What did you see as far as channel momentum for Dell in the last quarter ?

Overall, channel revenues were up 22 percent. Client was up 19 percent, servers were up 32 percent, storage was up 15 percent, and the channel momentum continues to be great with record numbers of deal registrations, great progress with new and reactivated customers. Partners are embracing the strategy we have and Dell Financial Services (DFS) continues to do really well. In the United States, DFS originations in the channel were up 33 percent in the first half of the year. That's really important because the partners that finance with DFS have typically grown twice as fast as the ones who don’t. We're gaining share. We're growing. The economy overall is doing quite well generally here in the U.S. and around the world. There's an explosion in the amount of data and infrastructure required … When customers and decision makers look at the breadth of the portfolio with all of our strategically aligned businesses – VMware, Dell, Pivotal, RSA, Boomi, Virtustream and SecureWorks – we have really an unmatched set of capabilities. Our innovation engine is cranked up on high. There's tons of new products and capabilities coming out.

What kind of momentum were you seeing overall for Dell in your second fiscal quarter?

Growth is balanced across all of our business units, our regions and customer segments. We're the undisputed worldwide share leader in x86 servers for the second quarter in both units and revenue. Server revenue in the channel was up 32 percent year-over-year. We had triple-digit growth in our converged and hyper-converged VxRail and VxRack, including $1 billion in cumulative revenue since launching VxRail. We're now No. 1 in hyper-converged. We had a record quarter in client in terms of units shipped, while we also expanded average selling prices. We out-performed the PC client sector with the highest share position ever in units overall and also in commercial units. We continue to increase our No. 1 positions in displays and workstations. When you look at the overall financial performance, it's pretty clear against the other companies out there – our data center business was up 24 percent. There's another company that starts with the letter 'H' that has a similar data center business. Their business grew 3.5 percent in the same three months where we grew 24 percent. This has been happening for several quarters in a row. Dell Technologies is doing really well.

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