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Tuesday, 28 February 2012 - Dell unveils new servers, says not a PC company |
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From Angelina Jolie's Leg Baring to Jennifer Aniston's Box-Office Bomb 27 Feb 2012 Is there a "Brad Pitt Curse" for current, former flames? 27 Feb 2012 Jennifer Lopez 'Nipple Slip,' Gwyneth Paltrow Skit Top Oscars Most-TiVo'ed Moments List 27 Feb 2012 Discussed 115 Afghans begin second day protest at Koran burning 101 Analysis: Can United States defuse Koran burning uproar? 98 Taliban urge Afghans to attacks Westerners Watched Sacha Baron Cohen gets a warning from Oscar Fri, Feb 24 2012 Total recall - Hitachi robot remembers and retrieves Mon, Feb 27 2012 Costa cruise ship adrift Mon, Feb 27 2012 Dell unveils new servers, says not a PC company Tweet Share this Email Print Related News HP slips on concerns of delay in turnaround Thu, Feb 23 2012 HP profit plummets, CEO urges patience Wed, Feb 22 2012 Banks sink on European economic worry Wed, Feb 22 2012 Apple shareholders to meet as stock at record high Wed, Feb 22 2012 Dell shares fall on earnings miss, outlook Tue, Feb 21 2012 Analysis & Opinion Corporate governance: SEC, shareholder activism driving enhanced director disclosure Facebook.coop Related Topics Tech » Media » iPad » By Poornima Gupta SAN FRANCISCO | Mon Feb 27, 2012 5:14pm EST SAN FRANCISCO (Reuters) - Dell Inc launched a new line of servers for enterprise customers, boosting its corporate business unit and shifting its focus further away from consumers, who are increasingly choosing such devices as Apple Inc's iPad. Chief Executive Michael Dell said his namesake company is no longer a personal computer company and has transformed itself into a business that sells services and products to corporations, a lucrative market that he said is worth $3 trillion. Corporations have grappled with ever-smaller IT budgets as slow economic growth curtails spending. But many experts say tech spending will swell over the long term as companies upgrade systems, connect to the Internet cloud, or begin to make better use of user data. Dell's so-called enterprise business has doubled in the past five to six years and now represents half of the company's profit, he added. "It's not really a PC company; it's an end-to-end IT company," Michael Dell said at an event in San Francisco where the company launched a new line of PowerEdge servers aimed at businesses with remote computing needs. The company's founder said the growth of Dell's enterprise business validates its strategy of diversifying away from personal computers as a new crop of devices such as the iPad captivates buyers. Michael Dell said he wants to focus on the enterprise and public markets, rather than a drastically smaller $250 billion consumer market. "The consumer market is not particularly healthy and the enterprise business is much more so," Dave Johnson, Dell's strategy chief, told Reuters. Dell's storage and networking revenue grew 10 percent last year, while sales of its desktop PCs fell 4 percent. The world's No. 3 personal computer maker fell short of Wall Street's estimate for fourth-quarter earnings, hurt by weakness in U.S. public spending and the lingering impact of the Thailand flood on its product mix. It has also forecast weak sales for the current quarter. Sales at Hewlett Packard's, the No. 1 PC seller, declined 15 percent in its fiscal first quarter. Round Rock, Texas-based Dell has been waging an uphill battle to diversify its revenue base from PCs to become a larger player in the data center equipment market and IT services. It faces stiff competition in those markets from the likes of International Business Machines Corp and HP. To help that effort, it has been acquiring companies, including Force 10 Networks and Compellent Technologies, to boost its enterprise-related products and services. (Reporting By Poornima Gupta; Editing by Steve Orlofsky) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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