Dell's services segment is the highest-margin business at 22% OPM and provides the recurring revenue base. Support services (ProSupport, ProDeploy) generate predictable income with high attach rates. APEX as-a-service represents the strategic transition to consumption-based IT, but adoption remains early-stage.
Will APEX reach $5B ARR by FY2029?
Dell's support services (ProSupport, ProSupport Plus, ProDeploy) are attached to hardware sales and generate high-margin recurring revenue. Server support attach rates are approximately 80%, with 3-5 year contract terms. Support services are the most predictable revenue stream in Dell's business.
Dell ProSupport is attached to approximately 80% of enterprise server sales and 60% of commercial PC sales. ProSupport Plus (premium tier) carries higher margins. Average contract ...
APEX is Dell's as-a-service consumption model, allowing enterprises to consume servers, storage, and networking as a subscription. APEX ARR is approximately $2B in FY2026, growing ~30% YoY. The vision is to make Dell IT infrastructure as easy to consume as cloud services, while keeping data on-premise. Adoption has been slower than expected as enterprises remain comfortable with traditional capex purchasing.
APEX ARR approximately $2B in FY2026, growing ~30% YoY. APEX offers servers, storage, networking, and HCI as consumption-based subscriptions. Minimum contract term is 1-3 years.
Dell's managed services and consulting practice provides outsourced IT management, cloud migration, and infrastructure consulting. This is a smaller but growing part of the services portfolio, competing with larger IT services firms like Accenture, Kyndryl, and HCLTech.
Dell managed services generates approximately $1-1.5B in annual revenue. Services include outsourced data center management, cloud migration consulting, and cybersecurity services.