Digital Newsletter
Each week our editor Phil Alsop rounds up the most popular articles, videos and expert opinions. We compile this into a Digital Newsletter and send it straight to your inbox every week.
Digital Magazines
We'll let you know each time a new edition of Data Centre Solutions is released so that you're always kept up-to-date with the latest and greatest news and press releases.
Video Magazines
The Data Centre Solutions Video magazine contains the latest Zoom interviews with experts in the industry.
Dell Technologies witnessed a widespread decline in sales last fiscal year, with annual revenues hitting $88.4 billion, marking a 14% decrease from the previous year and a significant $13.5 billion drop from its record-breaking $101.9 billion in 2022.
The dip was notably felt across all segments, with the market-leading infrastructure category experiencing a 12% decrease, totaling $33.8 billion. Tyler Johnson, Dell's senior vice president and treasurer, attributed this downturn to cautious spending among global enterprise customers amidst prevailing macroeconomic and geopolitical uncertainties.
Tyler Johnson expressed optimism for a rebound, particularly from large corporate clients, later in the year.
The servers and networking business faced a 14% annual decline, amounting to $17.6 billion in sales, while the storage segment showed relatively more resilience with a 9% decrease.
Jeff Clarke, Dell's COO, acknowledged the challenges faced during FY24 but praised the company's adaptability and focus. Despite two rounds of layoffs in 2023, Dell maintained its operating margin rate by enhancing gross margins and disciplined expense management.
PC sales also witnessed a significant slump, dropping 16% overall and 28% among consumers. Clarke highlighted the opportunity for growth in the second half of the year, driven by the need for PC refresh cycles in an aging install base.
Looking forward, Dell is optimistic about its AI initiatives and expects a return to growth in both infrastructure and PC sales. The company has expanded its Generative AI Solutions portfolio and anticipates a broader reach across customer segments, supported by advancements in enterprise data storage and AI acceleration in commercial laptops and workstations.
Despite the subdued performance, Dell's stock surged in after-hours trading, buoyed by exceeding analyst expectations and announcing a 20% increase in its annual cash dividend.
Dell's CFO, Yvone McGill, outlined the company's outlook for FY25, citing momentum in AI, improvements in traditional servers, and the impending PC refresh cycle as factors driving confidence. Dell anticipates revenue between $91 billion and $95 billion for the upcoming fiscal year, with its Infrastructure Solutions Group (ISG) poised for mid-teens growth driven by AI, while its Client Solutions Group (CSG) expects low single-digit growth.
