Dell's New Marketing Strategy - Google, Servers & Storage Systems

It seems that Dell is trying to take back its market share, and it also struggles to boast revenues, as challengers such as Hewlett-Packard and Lenovo have adopted a profitable approach, cutting prices on PCs and servers, according to Information Week.


The manufacturer already released a new generation of servers and storage systems, and it is expected to cut prices and add 2,000 customer service representatives. But the main achievement was the agreement signed with Google, the leader in Web search and advertising.

Dell representatives said in a statement that Google will install its Google Desktop and Google Toolbar software on future to come Dell PCs, and then the same Google is expected to resell the brand new Dell PowerEdge servers as its search appliance. No details regarding the sums involved in this new partnership were revealed up until now.

It seems like Dell has hit the jackpot when signing this agreement with Google, but the company's 'coming back strategy' is much more complex. As a result, the company's latest products are believed to be the core of this plan.

Neil Hand, vice president of worldwide enterprise marketing, stated for Information Week that: "Dell's new servers will increase performance by 150% or better over existing Dell servers and reduce power consumption by 25%. That isn't all driven by Intel's new designs but by a lot of effort Dell has put behind these platforms to look at them holistically."

According to the manufacturer's reports, Dell's server and networking sales increased only 11% in fiscal 2006 and dropped 7% in the first quarter of fiscal year 2007, and, in the same time, the sales of storage line augmented 38% in fiscal year 2006, but, unfortunately, fell 16% in the first quarter of 2007.