Bloomberg News

Dell Unveils New Servers Aimed at Beefing Up Data Centers

February 27, 2012

Dell Inc. (DELL) introduced a new line of servers designed to help business customers beef up data centers for information storage and the delivery of software and computing via the Internet.

The so-called PowerEdge servers will help customers handle computing tasks more quickly, and work in closer concert with Dell’s other products, including storage gear, Round Rock, Texas-based Dell said today in a statement. Chief Executive Officer Michael Dell also discussed the new products during a presentation in San Francisco.

Dell, the third-largest maker of personal computers, is using acquisitions and spending more on research and development to lessen its dependence on the personal computer market, which is facing stiffer competition from smartphones and tablets. Consumers and business users are increasingly performing computing tasks on those devices instead of on desktops and laptops, which make up 54 percent of Dell’s sales.

“We’ve been on a mission at Dell the last few years to transform the company,” CEO Dell said at the event today. “We’re investing at all-time high levels in research and development.”

The company forecast fiscal first-quarter revenue on Feb. 21 that missed analysts’ estimates as lackluster demand from consumers and governments eroded growth. Sales for the period ending in April will decrease 7 percent to $14.9 billion, the company said.

Servers, networking gear, data storage and services accounted for 31 percent of Dell’s $16 billion in fiscal fourth- quarter sales, according to data compiled by Bloomberg. The company is also expanding in software, and acquired data backup software maker AppAssure for an undisclosed price Feb. 24.

Dell climbed less than 1 percent to $17.52 at the close in New York. It has advanced 20 percent this year.

To contact the reporters on this story: Aaron Ricadela in San Francisco at aricadela@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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