Featured in this episode of Chaos Lever
In a previous episode, we examined whether cloud repatriation was a real and going concern, and the overall conclusion was that evidence was completely lacking to indicate a mass move back to on-prem datacenters.
To further reinforce that conclusion, Dell announced their Q1 FY2024-financial years are weird and I hate them- results, and they are. Well, they are pretty bad.
Operating income was down 31% YoY. Their Infrastructure Solutions Group, in particular, was down 32% in operating income and 18% on net revenue. That’s the group one would expect to see growth from if people were buying, like, lots of servers and storage.
Their other major division, Client Solutions Group, fared even worse with net revenue down 23% and operating income down 20%.
Surprisingly, the stock price didn’t take as much of a hit as you might expect. As a leading indicator, investors may believe the narrative that brighter things are ahead. I suppose we’ll have to wait and see if AI can swoop in and save Dell’s bacon.