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To: Windseye who wrote (86975)	11/18/2000 10:10:53 PM
From: Elwood P. Dowd	Respond to of 97611

Lifted at The Zoo: Dell's mouth by: mariobon2000 11/18/00 10:57 am Msg: 197463 of 197503 Fri Nov 17 18:21:41 2000 (COMTEX) B: Dell Drops Gloves To Take On Storage Giants B: Dell Drops Gloves To Take On Storage Giants Nov 17, 2000 (Tech Web - CMP via COMTEX) -- Can Dell do to EMC in storage what it has done to Compaq, IBM, and others in PCs? You know, take a great big bite out of the competition's cake? That's precisely what Dell Computer Corp. (stock: DELL) chairman and CEO Michael Dell wants to do. It would be a mistake to underestimate the company's intentions in storage, Dell told reporters after his Comdex keynote this week in Las Vegas. "We'll make a dent in those large companies and yes, I'm talking about the companies with three initials," Dell said. One of them, EMC Corp., Hopkinton, Mass. is viewed by many as the leader in high-end storage and is a Wall Street darling. It is also a company that Dell, Round Rock, Texas, has squarely in its sights. Dell intends to set storage pricing in some cases 10 to 20 percent lower than the competitors, he said. As proof of its growing credibility in the market, Dell cited a contract the company recently won to create 2,000 terabytes of storage for the Navy. Dell will also outfit the Navy with servers, workstations, desktop and notebook PCs. Dell -- which got its start in low-cost PCs and evolved into a corporate supplier -- is attempting to move higher up in the enterprise technology food chain. The company now claims to be the top supplier of workstations. "Today Dell is No. 1 in shipments and revenues of workstations worldwide," Dell said. Some observers say that might be true in respect to Intel workstations, but not in the more powerful Unix systems that dominate intensive computing. It's easy to understand why Dell would want to plunge into storage. Many experts say the demand for storage, driven by the Internet, will skyrocket. For all of Dell's talk, EMC (stock: EMC) will prove a formidable competitor and isn't betting that Dell will become a storage power. "Every time Michael Dell opens his mouth about storage, he shows the world how little his company understands the market," said Mark Fredrickson, spokesperson at EMC. "They don't have a market presence in enterprise storage at all, and there is not a large organization that relies on them to run its business." He added, "Dell's Navy contract is not a good sign for national security. When you buy Dell products, you realize you get what you pay for because their products break and are unreliable." Some analysts are also skeptical. Dell will have to be fiercely competitive if it's going to challenge a major vendor that already has the enterprise market, said Ron Johnson, analyst at the Evaluator Group in Denver, and it will require more than just pricing. "It's pretty presumptuous of Mr. Dell," he said. "Dell doesn't have the breadth to compete in the enterprise market," he said. techweb.com Copyright (C) 2000 CMP Media Inc.