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Dell Technologies Grows Server Business in 2018

By Sean Michael Kerner (Send Email)
Posted March 8, 2018


Dell Technologies reported its fourth quarter and full year fiscal 2018 financial results on March 8, showing particular strength in its server business.

For the fourth quarter, Dell reported revenue of $21.9 billion, for a 9 percent year-over-year gain. Looking at the full year, Dell reported revenue of $78.7 billion, for a 28 percent gain over fiscal 2017.

Among the key drivers of growth for Dell Technologies in the fourth quarter was a revenue increase from the company's servers and networking product lines, which were up 27 percent to $4.6 billion.

"Servers delivered its third consecutive quarter of record revenue, with double-digit growth from both PowerEdge and cloud servers as we continue to see strong demand for PowerEdge servers along with ongoing expansion of our server average selling prices," Dell Technologies CFO Tom Sweet said during his company's earnings call.

Record Year for Server Sales

Overall for the full year, Jeff Clarke, Vice Chairman, Products and Operations at Dell Technologies, said 2018 was a record year for servers in terms of both revenue and units shipped.

"It was the second time we've shipped 2 million servers in a year," Clarke said. "Q4 marked the third consecutive quarter of record revenue, and we continue to see strong unit growth for both PowerEdge and cloud servers."

Clarke added that Dell Technologies saw higher average selling prices for its servers due to a number of factors, including higher-value configurations and a ramped-up 14th generation PowerEdge server product portfolio.

"In Q3, we became the worldwide leader for x86 servers based on both units and revenue, and we finished the calendar year at the number 1 spot for both categories for x86 according to IDC," Clarke said. "This is the first time since we've entered the server market that we've been the undisputed market leader."

Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

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Tags: Dell, PowerEdge

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