Dell Touts Gains in Cloud Server War

Dell (DELL) says it is winning a "disproportionate percentage" of the cloud computing hardware deals.

Rich Miller

May 30, 2008

1 Min Read
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Shares of Dell are up nearly 10 percent this morning after the company reported sales of $16.1 billion, exceeding analysts' expectation of $15.7 billion. The strong showing is being viewed on Wall Street as Ca sign that Chief Executive Officer Michael Dell's turnaround strategy is making progress.

There is a lot of attention to Dell's gains in laptops (up 22 percent), software (up 17 percent) and storage (up 15 percent). Those are interesting, but we're all about the data centers. What about the cloud computing business? Here's a comment from Michael Dell in yesterday's conference call with analysts:

I think we've had great success in cloud computing, both with the software as a service providers and a lot of the big Internet companies. Dell, I think, has won a disproportionate percentage of the large web-driven opportunities and continue to be focused on that.

Here's the interesting wrinkle: most of those wins on cloud computing deals have been in China. "Dell's Cloud-Computing service and design model is powering about half of the fastest growing Chinese internet companies as well as the largest portal in China."

Dell has had a Cloud Computing Solutions business for two years, which focuses primarily on custom solutions for large customers. Dell recently shared some details about one of its custom server designs for cloud and hyper scale computing, known as the XS23 Cloud Server.

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