Dell (DELL) keeps entering businesses where it might have an edge over competitors IBM (IBM) and HP (HPQ). So far, it has had little success in getting out in front of its larger rivals. It latest plan is not likely to solve that.
According to Reuters, “Dell Inc is introducing new server and storage products aimed at cost-conscious companies, betting that its emphasis on value can help win market share as competition intensifies.”
Dell’s plans are based on the audacious assumption that HP, IBM, Sun (JAVA), and Hitachi have not seen the shrinking IT budgets at their customers and moved to market more cost-efficient products to appeal to miserly clients. Since one of the hallmarks of a recession is a cut in business spending, the idea of offering discounted product packages is probably something which occurred to most server companies months ago.
Dell may not have gotten that memo.
Douglas A. McIntyre
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