To: LightPen who wrote (83801 ) 12/5/1998 10:29:00 AM From: Mohan Marette Respond to of 176387
Dell-Introducing dual processor Workstations and killer strategies. LP: check this out,HP carves out the niche in low cost WorkStation DELL moving in for the kill with a dual processor Workstation for lower cost....man talk about strategy. Here is the best part.... Dataquest on Dell ">"What the 210 does is give them a product that is less expensive to produce to fill that low-end offering space," ffoulkes said. "It makes perfect sense for them, because they can drive the price down further without actually having to absorb the cost." Dell on pricing strategy.."If you look at the pricing, we're able to offer the dual-processor-capable system at or below our competitors' single-processor-capable systems." DELL COMPUTER CORP DELL UNVEILS LOW-COST WORKSTATION. Dec. 04, 1998 (Computer Reseller News - CMP via COMTEX) -- Round Rock, Texas -- Dell Computer Corp. took on channel competitors with the release of a low-cost workstation aimed at the burgeoning entry-level workstation market. The Precision Workstation 210 is a dual-processor-capable system designed to compete squarely against single-CPU channel offerings. Hewlett-Packard Co., Palo Alto, Calif., carved out the market niche little more than a year ago when it rebranded its Kayak XA PC a single-processor workstation. Previously, vendors and analysts had only classified two-processor systems as workstations. The move propelled HP to the top of the Windows NT workstation market, and competitors have since been playing catch-up, said Peter ffoulkes, senior analyst with Dataquest, San Jose, Calif. "What the 210 does is give them a product that is less expensive to produce to fill that low-end offering space," ffoulkes said. "It makes perfect sense for them, because they can drive the price down further without actually having to absorb the cost." By using the same motherboard and basic components found in the Precision Workstation 410, Dell cuts its manufacturing costs and boosts its margins, analysts said. When pitting the 410 head-to-head against the Kayak XA or Compaq AP 200 single-processor workstations, Dell must absorb the cost of more expensive components to match price. But Dell is looking to more than just save money on manufacturing, said Jillian Mansolf, the company's director of the Americas workstation sales and marketing. "If you look at the pricing, we're able to offer the dual-processor-capable system at or below our competitors' single-processor-capable systems." Dell is betting the lure of the second processor will be attractive to power users and 2-D graphics users, such as financial analysts. -0- By: Joe Wilcox