Copying a page from their PC strategy for x86 servers and storage
Newsweek’s Roger Kay makes a convincing case for Dell as a serious contender in the server space. And they’re doing it Dell Style – coming up from below, more direct in many ways than HP.
They’ve got a lot of momentum:
- Strong success supplying Microsoft’s datacenters
- A filled-out server line up
- Services that help customers adapt Dell servers to their applications
- Data Center Services (DCS) – a cloud-building unit with Yahoo, Facebook and Baidu as customers
Why is this important to a historically PC-centric company? Roger sees it:
Desktops tend to yield gross margins in the 8% to 12% range, and notebooks hit 12% to 18%; servers come in at a much fatter 18% to 26%.