Dell Technologies’ Revenue by Segment (2016 – 2022)

Client Solutions Group (CSG)

CSG includes branded hardware such as desktops, notebooks, and workstations, along with branded peripherals such as displays and projectors. It even includes third-party software and peripherals.

Dell’s computing devices are designed, keeping in mind the commercial and consumer customers’ needs. The company even seeks to optimize performance, reliability, manageability, design, and security. Dell also has a portfolio of thin client offerings that allows them to benefit from the growth trends in cloud computing. This segment also includes services related to support and deployment, configuration, and extended warranty services.

On a QoQ basis, this revenue increased by 16%. Even on a YoY basis, there was an increase of 34.7% in the revenue generated. 

Infrastructure Solutions Group (ISG)

ISG enables the digital transformation of customers through multi-cloud and big data solutions. It works with customers in the area of hybrid cloud deployment to simplify, streamline, and automate cloud operations. These solutions are built for multi-cloud environments and are optimized to run cloud-native workloads in both public and private clouds, as well as traditional on-premise workloads.

• Dell’s storage solutions include traditional as well as next-generation storage solutions such as all-flash arrays, scale-out files, object platforms, and software-defined solutions. In May 2020, the company even launched PowerStore storage array, to make enhancements to their storage solutions offerings. 
• The company even has a server and a networking portfolio. These together help in optimizing artificial intelligence and machine learning workloads and help business customers transform and modernize their infrastructure, improve end-user experiences, and accelerate business applications and processes. 

ISG also includes attached software, peripherals, and services, including configuration, support and deployment, and extended warranty services. On a QoQ basis, the revenue generated from this segment declined marginally by $4 million. However, on a YoY basis, the total revenue generated increased by 5.03%. 

VMware

This segment includes Dell’s subsidy – VMware, Inc.(NYSE: VMW). It works with customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces. This helps the customers manage their IT resources across private clouds and complex multi-cloud, multi-device environments.

VMware enables its customers to digitally transform their operations as they ready their applications, infrastructure, and employees for constantly evolving business needs and focuses on 5 key IT priorities of its customers:

• accelerating their cloud journey
• migrating and modernizing their applications
• empowering digital workspaces
• transforming networking
• embracing intrinsic security

VMware has also made many strategic acquisitions such as Carbon Black (developer of cloud-native endpoint protection) and Pivotal Software (a cloud-native platform that makes software development and IT operations a strategic advantage for customers). It is to be noted that Pivotal Software was earlier a majority-owned subsidiary of Dell Technologies. Dell also owns other businesses such as SecureWorks Corp. (NASDAQ: SCWX), Virtustream, and Boomi. These businesses are not classified as reportable segments, as the results of the businesses are not material to the overall results.

On a QoQ basis, the revenue generated from this segment increased by $0.3 billion. Even on a YoY basis, there was an increase of 9.8% in the revenue generated. There is a seasonality trend observed here, with the highest revenue being generated in Q4 each year. 

About the Company 

Dell Technologies (NYSE: DELL) provides customers with the industry’s broadest and most innovative technology and services portfolio for the data era. These services vary from traditional infrastructure to multi-cloud technologies. Their integrated solutions help customers modernize their IT infrastructure, manage and operate in a multi-cloud world, address workforce transformation, and provide critical solutions that keep people and organizations connected. 

To innovate new products, Dell announced their plan to evolve and expand its IT-as-a-Service and cloud offerings through Apex. This will provide customers with greater flexibility to scale IT to meet their evolving business needs and budgets. The company currently offers services in 180 countries across key functional areas, including technology and product development, marketing, sales, financial services, and global services.

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