It’s getting bloody in the PC Server market since Dell Computer Corp launched its first Pentium Pro servers last month at an entry price of under $4,000 – about half the price of equivalent models from IBM Corp, Compaq Computer Corp and Hewlett-Packard Co (CI No 2,995). Compaq responded immediately by cutting prices on its ProSignia, and ProLiant lines, but held prices on its own Pentium Pro models. Now Dell has enticed Compaq’s vice president of marketing, Michael D Lambert to join it as senior vice president of the Server Group. He reports direct to CEO and chairman Michael Dell and to vice chairman Morton Topfer, and will focus server-related activities for the Dell PowerEdge line into a single group. Dell now has a dedicated server manufacturing facility and has boosted up its server support operations. Dell sells servers direct, as it has done with its desktop systems, and saw server revenues grow 115% in the second quarter of the year compared with the same period last year.
