Dell Adds Servers, Storage To Revitalize Product Lines
Posted by
Darrell Dunn
June 07, 2006
Dell on Wednesday introduced its ninth generation of servers and new storage offerings, which will need to find quick market acceptance if they are to help reverse the financial slide the company has been experiencing.
Dell has seen it previously remarkable growth track record stall in the past few quarters. Revenue slipped in the past fiscal year, and earnings dropped significantly last year and in the company's recently announced fiscal first quarter results.
Dell believes a tight integration of its server and storage product line, with an emphasis on providing low cost of ownership and management, can help refuel its growth engines. A lot is being tied to its storage effort, which grew 38% in fiscal year 2006, which ended Feb. 3, but experienced a 16% sequential drop in revenue in the first quarter of fiscal 2007, which ended May 5, although the segment grew 12% year-to-year.
Dell's server and networking line grew only 11% in fiscal 2006, and dropped 7% in the first quarter of fiscal 2007.
Neil Hand, VP of worldwide enterprise marketing for Dell, says its new servers are targeting true customer concerns. "I make the claim that customers are not making their buying decisions based off of speeds and feeds, individual performance, or power consumption claims," Hand says. "What they are worrying about is the complexity of their servers, storage, and data center environments in general."
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