Dell boosts server computer lineup
By Mike Tarsala, CBS.MarketWatch.com
Last Update: 7:20 PM ET Dec 5, 2000
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ROUND ROCK, Texas (CBS.MW) -- Dell Computer introduced several new
server computers and related services Tuesday, as the company best known
for direct sales of PC's took aim at unseating server-rival Compaq.
Among several new products, Texas-based Dell
(DELL: news, msgs) introduced a new server for
use in rack-based systems. The company
claims it's selling the first rack-mounted server
to use Intel's speedy 1-gigahertz microchip. The
new computer will be available for purchase in
January for $2,599. Another new rack-mounted
server with slower chips will be sold for $1,499.
Dell's product announcements are among its most significant since the Oct.
4 revenue warning that triggered to a sharp sell-off in the stock. The company
has lost about a third of its market value in that time.
Dell shares rose $1.44 to close at $20.25. Shares of Compaq (CPQ: news,
msgs) gained $1.63 to $24.40 on the Big Board.
Less than five years after making its foray into servers, owns the No. 2 rank
in that market in terms of sales volume, according to International Data Corp.
Company executives said they hope to bump off Compaq to become the
top-volume server seller by as early as next year.
Personal computer companies sell far fewer servers than desktop PCs. But
servers are an important part of the PC companies' profit mix, in light of
razor-thin PC profit margins.
Dell executives talked bullishly about the new and potentially lucrative new
server products. The new rack-mounted computers, as sell as several newly
introduced Web servers, will help the company to overtake its Texas-based
nemesis, Compaq, company officials said.
In addition to its new rack-mounted and Web servers, Dell introduced what
will be its most powerful server to-date. The company's planned PowerEdge
server will be able to make use of as many as 32 Intel microprocessors to
tackle demanding corporate computing jobs, according to Joe Marengi, a
Dell vice chairman. The system can work with a Microsoft operating system,
a Linux operating system, or both.
To be sure, other computer makers that make use of the Unix operating
system long have sold such powerful machines. And other computer
companies are laying plans for 32-processor servers that run on Intel chips
and Microsoft software.
The PowerEdge computer will be sold starting in the first quarter, executives
said. It will work with Intel's Xeon family of high-performance chips, as well as
the chip leader's planned Itanium processor, when it becomes available.
In addition, Dell unveiled new services for its server customers that aim to
make it easier to set up computing systems and to offer customers more
server reliability. Dell also began marketing new systems management
software that works with servers.
Mike Tarsala is a San Francisco-based reporter for CBS.MarketWatch.com. |
