Jeff Clarke: Well, that’s an interesting question. The inside baseball view here is we are leading the market and we continue to expect to lead the market with our broad capabilities going forward. I believe it’s reasonable and how we think about this internally that we have our target set on having a larger percentage of this market than we do in our traditional marketplaces. That’s inclusive of the PC. I think one of the things again I think it makes us special and different here we can reach a large set of customers from the smallest businesses in the world to the largest multinationals in the world. We can service the CSPs. We can bring them the hardware, the GPU servers, in the future our AI PC so all the way out to the edge.
We have a broad range of network fabric. We have the storage portfolio that’s unmatched in the industry. Our 30 plus thousand service organizations with its service organization with the consultant and professional services organization that we have servicing in 180 different countries allows us incredible breadth to reach customers to deploy this gear wherever they might have it. The partners that we have with our DSIs and our go-to-market allow us further reach. So we kind of think of it that way that this is a market that’s developing really aligned with the strengths of our company and allows us to extend our model in a very differentiated way to access this marketplace in a different in a differential manner. Not to mention I won’t be shocked I said this that I think our engineering capabilities here are pretty unmatched and this stuff is really hard to tune these models to build clusters to get every ounce of performance that you’re paying for is real engineering work and we believe we have the engineering scale to help many customers do this.
Asiya Merchant: Great, thank you.
Jeff Clarke: Welcome.
Operator: And we will take our next question from Simon Leopold with Raymond James.
Simon Leopold: Thanks for taking the question. I wanted to see if you could give us a little bit of insight from your perspective of what’s going on in various verticals or geography. So we’ve really been sort of tackling things sounding a little bit better on traditional and storage but I’m just wondering if there’s any nuance as to where it’s coming from either market verticals, market geographies, what’s getting better? Thank you.
Jeff Clarke: Simon was that an AI specific question or broadly across the business?
Simon Leopold: Yes, broadly across the business. I really try to get a sense of what’s influencing the business most apart from this focus on AI.
Jeff Clarke: Well sure, I’ll try to clear with that. Yvonne will help me along the journey here. We talked about PCs is clearly a cycle where there’s caution. You’ve seen that reflected in our performance and our upcoming guidance. So PCs isn’t an area where we’re seeing the upside yet. Do I expect the PC market to be bigger in calendar 2024 than 2023? Yes. Do I think the PC market is likely bigger in the second half of 2024 than it is in the first half? Absolutely so. Hence our remarks that we believe the opportunity in PCs is second half driven. That is primarily a result of an aging install base. It’s never been bigger and older than it is today. We have a version of Windows that’s retiring and we have hardware enabled AI PCs with an application base coming that should make it an exciting opportunity to own an AI PC.
So let’s start how that one plays out. We talked about traditional servers. There’s momentum there. Three consecutive quarters of sequential growth and demand. First quarter in a long time of year-over-year demand growth. We exit with good momentum. We tried to reflect that in our guidance. That is in all geographies. Storage, better than we planned. It was good to see that was across the unstructured products as I mentioned that actually grew demand year-over-year and quarter-over-quarter. And our mid-range data protection class products and our high-end products that perform better than we expected on a quarter-over-quarter basis. Yvonne reflected that in our guidance. That uplift in Q4 comes down in Q1. That’s one of the challenges we have when we talk about the storage mix is changing in Q1 over Q4.
And then there’s just the tremendous uplift with AI. That is clearly the opportunity. It’s large and we believe we’re disproportionately participating in it. And it’s an exciting category and that’s driving tremendous momentum for us. Yvonne would you?
Yvonne McGill: I think you covered it well. We’re expecting, really growth across the portfolio and across the globe as the year progresses.
Jeff Clarke: Yes, and then clearly, Simon, from a vertical standpoint, small business, medium business starting to come back, public has been strong this year, federal has been strong, and the education business has been strong. What we’re really waiting on is that large corporate, global, multinational enterprise business. And it’s natural, I think, for them to be a little bit cautious given the macroeconomic, geopolitical, and interest rate environment that we found ourselves in over the last several quarters. So that’s the verticals that we’re really looking forward to come back later this year. And that’s kind of a sweet spot for Dell from a customer standpoint. So I appreciate your question.
Operator: And we’ll take our next question from Ben Reitzes with Melius Research.
Ben Reitzes: Hey guys, thanks a lot. Jeff and Yvonne, how confident are you that you’re going to get enough GPUs to grow from about a $1 billion level in AI servers in the first quarter? And then, Jeff, if you don’t mind, can you just give us some more color on what you’re excited about? I mean do you feel like the H200 is a multi-quarter cycle? The B100, do you feel like you’re going to get them and be able to drive that into 2025? And any color on AMD and your early momentum there would be appreciated. Thanks a lot.
Jeff Clarke: Hey, Ben, let me try to work my way through the — look, it’s our job in the Dell supply chain to get the supply that is aligned with our demand. I think there are others that commented, I’ll make our comment, the demand for these things is in excess of the supply. That continues certainly into next year. We’re doing everything we can to get as much of that as we need for our customers. The methodology and allocation hasn’t materially changed. We understand that, we’re working that, and we’ll continue to do so. I like what we’ve been able to accomplish thus far. I like our view with what I know at this moment in time for calendar 2024, fiscal 2025. I’d also tell you it’s a little more complex this year. Last year is basically the H100 show.
