Dell Technology’s fourth quarter 2017 earnings, which the company reported today, was the first full quarter that included both Dell and EMC since that merger closed on Sept. 7, 2016.
For the quarter, the company reported consolidated non-GAAP revenue of $20.6 billion compared to $16.2 billion from its third quarter, with full-year revenue of $61.6 billion.
Notably, the company’s revenues for its Infrastructure Solutions Group (ISG), which includes EMC’s efforts, saw the most growth with a total of $8.4 billion this quarter. Within its ISG, servers and networking products brought in revenues of $3.6 billion, compared to $2.9 billion last quarter, and its storage business accounted for $4.8 billion in revenue, compared to only $562 million the quarter before.
Its networking business had the highest level of revenue it has seen in eight quarters after winning new service provider and web tech customers, said David Goulden, president at Dell EMC on the company’s earnings call today.
“More and more parts of the IT infrastructure stack have become software-defined, and they have got to run somewhere. They run on servers, and particularly, on rack-scale servers,” Goulden said.
This is also the first full quarter that VMware was included in Dell Technologies earnings, bringing in $1.9 billion in revenue. This revenue was largely driven by its software-defined data center (SDDC) and NSX bookings. NSX has a run rate of about $1 billion and now boasts about 2,400 customers.
Dell Technologies is putting focus on its ISG group, working on HCI, hybrid cloud, and software-defined products. It recently divested in Dell services, its software group, and the Dell EMC content division.
“We are well-positioned of letting people take advantage of on-prem and off-prem together with the strengths of VMware, with the Pivotal layer, and our ability to put together complete solutions… and compliment that with VirtuStream, which handles mission-critical workloads,” Goulden said.