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Technology Stocks : Dell Technologies Inc.
DELL 120.60+1.8%Jan 9 3:59 PM EST
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To: Sig who wrote (175174)9/13/2005 7:17:23 AM
From: Dan3  Read Replies (1) of 176387
 
Re: Back to school sales, HPQ faltering

Back to school sales are pretty much over and very much last month's news. HPQ is doing better than it has in a long, long, time.

The only really surprising thing that has happened recently is that Sun's much vaunted new Galaxy didn't turn out to be a 32-way IBM POWER killer - it's a new dual core server costing less than $1K aimed squarely at Dell.

I'm not sure what Dell has to go against a dual core server with high end management features and tier one support that's less than $1K. Dell's server business has been getting squeezed at the top by HP, lately. Now they're getting attacked at the bottom by Sun. That's one I don't think any one saw coming.

Sun is claiming a base 50% price/performance advantage over Dell and offering "trade up" incentives over that:

Trade in any qualified Dell server and get a 20% trade-up allowance off the list price on eligible new Sun Fire X4100 and X4200 servers with 3-year support services. That's a potential savings of up to $1,900 on new entry level Sun servers that have 1.5 times the performance of Xeon-based Dell servers.* Sun Fire X4100 and X4200 servers also offer up to 56% savings in power and cooling costs per year over comparable Dell servers.**

Sun Savings Example [not based on the entry level model]:

Trade in a Dell PowerEdge 2850 for 50% better performing Sun Fire X4200 with 2 X AMD Opteron Model 254 processors, 4 x 2GB PC3200 DDR-400 Memory, 2 x 73GB 10K RPM SAS drives, and receive 20% off the list price of the new Sun Fire X4200 - that's over $1,900 in instant savings.
sun.com
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