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Dell storage sales still limping, post-EMC

Dell storage remains a work in progress, nearly two years since it ended its OEM deal with EMC.

Dell’s storage revenue was lower than expected last quarter, coming in at $435 million. That was down 13.3% from last year and 2% from the previous quarter. Dell executives point out that Dell branded (non-EMC) storage revenue of $416 million was up 6% from last year, but even that figure was down from the previous quarter this year.

Dell executives admit they were disappointed with the storage results, but said the product line and strategy is strong. They blame market conditions as much as any failings on Dell’s part for the company’s failure to do better since breaking up with EMC in October 2011.

“I think we can definitely do more there,” CEO Michael Dell said of storage on the earnings report conference call Tuesday. “Storage was not as strong as we’d like, and there’s definitely room to grow that faster.”

CFO Brian Gladden added that storage revenue was “below where we would have liked it, we believe this is roughly in line with the market.”

Dell did not break down revenue from its individual platforms, lumping revenue from EqualLogic, Compellent, PowerVault and DX Object Storage together.

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