Dell Inc is introducing new server and storage products aimed at cost-conscious companies, betting that its emphasis on value can help win market share as competition intensifies.
The announcement on Tuesday comes as the corporate server market heated up considerably over the past week, with the much-anticipated entry of network equipment maker Cisco Systems Inc, and widely-reported merger talks between market leader IBM and high-end server maker Sun Microsystems Inc.
Seeking to distinguish itself from competitors offering more expensive products developed on proprietary technology, Dell said its portfolio of 14 new products is designed to save companies time and money though improved efficiency, adoption of open standard infrastructure and virtualization technology.
"We think simplifying IT, driving efficiency in the data center, helping our customers consolidate and virtualize to save costs is actually the strategy that will ultimately win in the industry," Steve Schuckenbrock, president of large enterprise for Dell, said in an interview last week.
The new products include PowerEdge servers and workstations based on Intel Corp's next-generation Nehalem processor, EqualLogic storage arrays and software designed to help simplify IT management in a single console. The servers will begin shipping on Monday, when Intel is expected to formally announce Nehalem.
Industry analysts, who were briefed on the new products by Dell, spoke positively on Monday about the products and the strategy.
"What Dell's focusing on is trying to show customers a way to save money...so they [customers] can free up resources to invest in new applications and I think that is a good overall story and strategy for 2009," said IDC analyst Matt Eastwood.
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