Speaking via satellite to attendees at the Sixth Annual Needham & Company Growth Conference here, Dell said although many corporations, especially small- and medium-size companies, are finally spending more on IT equipment, they are often opting for hardware that's not proprietary. The tactic is gutting revenues at some vendors, Dell said.
"In the server market, it's quite possible that units, server capacity and processing power can grow dramatically while revenue can actually decline because we are replacing mainframes and supercomputers with high-performance clusters," Dell said.
"You could have a decline in your spending but a dramatic increase in your capacity because of all these disruptive technologies," he added.
In remarks aimed at those who have criticized his company for not spending as much as some rivals on R&D, Dell said the PC maker seeks to leverage existing technologies that can be brought to market more quickly.