New Servers from Dell

Dell Inc. (DELL - Analyst Report) has introduced a family of servers specially targeted at the Small and Medium Business (SMB) segment. This is the eleventh generation of its PowerEdge servers and PowerVault NX300 storage servers. We believe that these cost-efficient products could help the company grab a share of the SMB market. 

The new PowerEdge servers are powered with Intel’s (INTC - Analyst Report) Xeon 3400 processors needed to run business workloads with the Microsoft Windows Server 2008 R2 operating system. These servers have lifecycle controllers and an easy access design. They are empowered with various features that claim to reduce maintenance cost. The new PowerEdge servers come in T110, T310, R210 and R510 models and are available from September itself, starting at $599. 

This apart, in the Storage Server segment, the company introduced PowerVault NX300. This is an entry-level Microsoft Windows Storage Server 2008 NAS (Network-Attached Storage) that has the capability of storing up to four terabytes of data in a single device. Like the other new servers, it can be set up easily and is capable of conducting quick file sharing operations. 

The storage server comes with Dell’s Single-Instant Storage deduplication technology that maximizes capacity. The PowerVault NX300 will be available in October at a starting price of $3,000. We believe its user friendly feature will be especially useful for the SMB customers as it will help them to conduct efficient business operations by using existing hardware. 

As per a recent survey conducted by technology research firm IDC, Dell holds the third position in the server market after International Business Machines (IBM - Analyst Report) and Hewlett-Packard (HPQ - Analyst Report). As per IDC’s findings, server sales in the second quarter were $9.8 billion, a decline of 30.1% from the year-ago quarter, the lowest revenue witnessed by IDC since 1996. On the other hand, the research firm expects that there will be a moderate revival in IT spending in the third quarter, as IT customers across geographies are expected to upgrade their IT systems to support the next business cycle. We believe this will help Dell generate greater revenues from these newly introduced servers.

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