Customer Survey Shows Standard Server and Storage Technology Continues to Reach Deeper Into Enterprise Applications

Business Wire, Nov 8, 2001

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Nov. 8, 2001

Dell (Nasdaq:DELL)

Respondents Point to Better Value, Ease of Use

Versus Proprietary Platforms

By a factor of nearly 10-to-1, enterprise customers say that perceived disadvantages of using industry-standard servers and storage products for midrange to high-end computing needs have been overcome, or will be soon.

In an accompanying white paper, analysts from International Data Corp. (IDC), which conducted the research, issued a "call to action" for businesses and institutions to integrate industry-standard technology in their computing infrastructures, saying organizations which migrate earliest realize benefits of low cost, simplicity and the highest levels of return on investment.

Dell, which commissioned the research, said survey results are consistent with what the company hears from customers, and bode well for its own long-term growth.

"Customers say they want better price-for-performance, they want reliability from the data center to the client, and they want enterprise technology that is easy to buy, install and own," said Kevin Rollins, Dell's president and chief operating officer. "We're responding with innovative, high-value, standards-based products and services."

The majority of 100 medium- to large-sized organizations surveyed by IDC described the same growing preference for industry-standard enterprise technology. Respondents used both servers with Intel Corp. or other standard microprocessors running Microsoft Corp.'s Windows or the Linux open-source operating systems, as well as proprietary servers and storage products.

According to IDC, 83 percent of corporate information-technology buyers and users who participated in the study believe disadvantages to applying standards-based technology in the enterprise have been overcome, and 93 percent said any such obstacles will be overcome within two years as the capabilities of standards-based platforms continue to evolve.

Users cited lower total cost of ownership, ease of use and better availability of products and services as primary benefits of using standardized servers and storage products. IDC said the combination of features and value from standards-based products has resulted in a steady gain in market share at the expense of proprietary servers.

Respondents also indicated that proprietary midrange and high-end servers are typically expensive to purchase and support and lack interoperability with other servers. They also said it is difficult to support the legacy applications which run on proprietary servers.

"Proprietary technology won't become passe in the near future," said Dell's Rollins. "But the multiyear trend in customer preference for standards-based enterprise servers and storage products is unmistakable."

Indeed, IDC reported that standardized servers, which represented less than one-third of servers purchased 10 years ago, now account for 85 percent of industry shipments. Functionality previously found in midrange and high-end server markets is now often available from lower-cost industry-standard servers.

This combination of value and functionality has enabled standardized platforms to move deeper into the IT infrastructure to support a wide range of applications. Not surprisingly, survey respondents indicated their selection of standard-based enterprise systems will continue to increase over time.

Other IDC conclusions were:

-- Lower costs derived from investing in standardized hardware for the
enterprise also extend to related software;

-- Hardware standardization enables a trend toward lower-cost "productized"
services; and,

-- Industry-standard technology makes innovative enterprise-computing products
and services more affordable to a larger number and broader range of corporate
and institutional customers.

Complete survey findings and conclusions are available at http://www.dell.com/conversations.>

About Dell

Dell Computer Corporation (Nasdaq:DELL) is the world's No. 1 computer systems company and is a premier provider of products and services required for customers to build their information-technology and Internet infrastructures. The company's revenue for the past four quarters totaled $32.6 billion. Dell ranks No. 48 on the Fortune 500, No. 122 on the Fortune Global 500 and No. 7 on the Fortune Global "most admired" lists of companies. Dell, through its direct business model, designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at www.dell.com.

NOTE TO EDITORS: Dell will host a media teleconference on the use of standards-based enterprise technology by businesses and institutions today at 1 p.m. (CST). The call, which features Randy Mott, Dell's chief information officer, and Damien Bean, vice president, corporate systems for Hilton Hotels, can be accessed by dialing 800/946-0712 (domestic) or 719/457-2641 (international), using the passcode "Dell Enterprise." A replay of the call will be available from 5:00 p.m. CST Thursday, Nov. 8, until 7:00 p.m. CST Friday, Nov. 9, by dialing 888/203-1112 (domestic) or 719/457-0820 (international), using the passcode "534121."