Dell has taken the server market by storm, attributing its success to an aggressive pricing strategy.
According to latest figures from researcher Dataquest, Dell has come from nowhere to become the UK's third biggest server vendor after Compaq and IBM. The PC direct seller's server business has grown 115% in the last 12 months in terms of units shipped, compared to a total market growth of 30%, said Dataquest.
Dell predicts the server market will change radically in the next few months and has accused some manufacturers of overcharging for their products.
Perminder Dale, head of Dell's UK server business, claimed: "We are shipping high performance models at prices that our competitors will need to match if they want to stay in the race."
However, Dale acknowledged that price was not the only factor users consider when buying a server: "We have the right strategy to increase our server business significantly over the next 12 months."
"Our recent investment in another 750 jobs in our European Manufacturing Facility (demonstrates) our commitment to meeting demand levels in the UK market," said Dale.
Dell entered the server market two years ago. Today, server products account for 5% of the company's overall revenues.
Dale believes wide acceptance of Windows NT Server in corporate UK sites has contributed to the company's success in the server arena. "We're having an NT wave. NT is now accepted as a mainstream server operating system," he said.
Dell introduced single processor Pentium Pro servers in September and dual processor systems in November. Quad Pentium Pro servers are due in January.
P Dell has increased its server business by 115% over the past 12 months and is now the third biggest vendor.
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