Google to sell Dell servers
The no.-1 PC maker said Google will re-sell its servers, bundled with Google software, to corporate customers.
NEW YORK (CNNMoney.com) - Dell announced today it is launching a revamped line of servers and has struck a deal with Google to sell some of the systems to Google's corporate customers.
The company said Google (up $3.05 to $393.04, Research), the number-one search firm, will ship Dell's (down $0.16 to $25.45, Research) new PowerEdge servers bundled with Google's search software to the search outfit's corporate customers. The bundled machines are meant to help companies search for and manage internal documents and databases.
The new servers, which are the ninth generation of products under Dell's PowerEdge brand, feature the latest Intel processors and are available today. Versions featuring Intel's newest server processor, code-named Woodcrest, will debut in the coming weeks.
Late last month, Google chief Eric Schmidt announced a deal that will have Dell factory-install a package of Google software on its systems, calling the move "the first of several" agreements with Dell that Google will announce, according to a Reuters report.
Dell said its new servers offer increased performance and better power consumption, an increasingly important issue to IT managers. The revamped server line is the latest in a series of steps that the Round Rock, Texas-based computer maker has taken to get the company back on track.
Shares of Dell have fallen 35 percent since last August, when the company began a streak of missing earnings and revenue expectations, as well as losing market share to its resurgent rival, Hewlett-Packard (up $0.40 to $31.30, Research).
Dell announced during its most recent quarterly update that it will introduce new AMD (down $0.06 to $28.89, Research) Opteron processors in its high-end multi-processor servers by the end of the year, a first for the company, which has previously only used Intel (Research) processors. Analysts say Dell made the move to become more competitive with HP, which uses both AMD and Intel processors, since AMD processors are perform better than some Intel processors.
The company also said it is accelerating plans to record $3 billion in cost improvements during the year, and is investing more than $100 million in its customer service operation, including hiring more than 2,000 new sales and support personnel in the U.S.
Google's Mr. Brin goes to Washington: Read more here.
Hewlett-Packard bumps up results: Click here.