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Dell's Storage Sneaks Up

Confronted with a tough PC market, Dell throws more weight behind storage

Dell, which is desperate to make its presence felt in the storage market, posted a solid set of third quarter results last night, with storage growth outpacing the vendor's PC business.

The vendor's third quarter revenues were $15.6 billion, up 9 percent on the same period last year, and above analyst estimates of $15 billion. Dell's earnings per share were 34 cents on net income of $766 million, up from 27 cents and $601 million in the year-ago quarter, although this was slightly below analyst estimates of 35 cents.

Dell's sales of desktop PCs actually declined 1 percent year-over-year, compared to the firm's server and storage divisions, where revenues grew 8 percent.

"Were making progress, but there is much more to be done," said Dell CEO Michael Dell, on a conference call last night, highlighting, in particular, opportunities in the consumer, SMB, and enterprise markets.

In the SMB space, Dell pointed to the vendor's recently-launched iSCSI SAN as evidence of its desire to be taken seriously as a storage player.

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