Channel Helps Dell Defy Server Market Slide

Dell bucked the industry-wide slide in server sales, thanks in large part to its growing and robust channel network for resellers and systems integrators. The 9 percent bump in unit shipments show the power of engaged channel partners.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Dell Inc. did something remarkable last quarter: It posted a 9 percent increase in server sales while the rest of the industry saw modest declines. Overall, Dell and Cisco Systems Inc. lifted server shipment trend lines out of the red.

The secret weapon: The channel.

Related articles

Analysts credit Dell’s jump in server market share from 21.8 percent to 23 percent to the expanded market activity and sales of its legions of channel partners. By comparison, server rival and market share leader Hewlett-Packard Co. saw its wedge of the pie shrink from 29.2 percent to 25.8 percent, as sales slumped 8.4 percent, according to analyst firm Gartner.

Around the rest of the industry, server unit sales declined for IBM (down 2.5 percent) and Fujitsu (down 3.7 percent). Cisco posted an impressive 40.4 percent increase in server shipments, but it’s working from a substantially smaller base than other leading vendors.

Gartner credits Dell’s engagement with its growing and increasingly focused channel partners and evolving enterprise strategy for pushing entry-level and midrange servers to market. While Dell’s PC sales slide, it’s been using servers, storage and an expanding portfolio of complementary network and software assets to offset losses.

Recognition of Dell’s channel as the catalyst for server growth shouldn’t come as a surprise. Dell long ago turned the corner of “the direct-sales enemy” of the channel to “channel-centric” enabler of solution providers. While many solution providers continue to harbor misgivings and suspicions about Dell and its channel relationships, the company has steadily increased its channel presence and sell-through to the point at which more than one-third of its global sales flows through partners.

While Dell and Oracle lifted overall server unit shipments, they weren’t able to reverse the slide in revenues derived from server sales.

Overall worldwide server sales revenues fell 2.8 percent, with Fujitsu leading the way with an 18.3 percent decline. Oracle saw its server revenues fall 22.5 percent, and HP took a 12.4 percent hit.  Only Dell saw server revenues increase, 10.3 percent over the same quarter the year before.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Channel Business
Rejected Link Request

Salesforce CEO: SAP rejected our partnership

Marc Benioff said he attempted to collaborate with competitor

hired-hire-join-appoint-appointed-rubber-stamp-rubberstamp

IBM appoints new Global Business Partners VP

Michele Stern tasked with bringing $5bn in revenue

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams

wires

HP to focus on wired, wireless to take market share from Cisco

Meg Whitman says there is opportunity to capture Cisco-dominated market

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
newspapers-and-glasses

Channelnomics' top five stories of the week - 3 July 2015

Check out which articles grabbed the most attention this week

jessica-m-225x300

Editor's voice: The week's channel chatter - 3 July 2015

What's been happening this week on Channelnomics?

Microsoft Surface Hub

Microsoft going big with partners on Surface Hub launch

Partners report strong demand for the wall-mounted collaboration device, anticipate even more opportunities when application development program rolls out in September

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams