Welcome to Episode 37 of the Cloud Wars Horizon Minute — featuring news and commentary hosted by Acceleration Economy analyst Tom Smith. Each episode provides insights into one or more Innovation Accelerators on the Cloud Wars Horizon. This episode lays out implications from Dell Technologies’ quarterly earnings, including cloud demand, supply chain execution, and deflation.
Highlights
00:50 — Dell Technologies has an expansive product line spanning cloud, infrastructure, and desktop products — it also serves commercial and consumer customers — and $100 billion in annual revenue. So, its results, as well as the commentary from its top executives, have broad-reaching applicability across other sectors.
01:20 — The client solutions group, including desktops and notebooks, grew 9% on the strength of fast-growing commercial customer purchases — which include systems for hybrid work — (up 15%) while consumer revenue declined 9%
01:40 — APEX Infrastructure-as-a-Service was a bright spot in the infra business: the APEX Annual Recurring revenue is now $1 billion, orders grew 78%, and the company added 200 new customers.
02:10 — The company expects modest cost deflation in aggregate component costs in Q3 and noted that logistics rates are beginning to decline.
02:50 — Broadly speaking, automation and digital transformation remain the backbone of customers’ strategies for productivity and growth.
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