Word: intel
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Dates: during 2000-2009
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Hewlett, on the other hand, has his elephant gun aimed squarely at those big beige bundles of Intel chips and Microsoft software. It doesn't make sense to him--or to some industry analysts--to spend so much money on other people's technology, especially now that Dell seems to have the PC direct-sales market sewn up. "Strapping together boxes and selling them is not an area where HP is doing well," Hewlett points out. "Why get further into that business...
...unusual in the technology world in that they are basically commodity products—with Intel and Microsoft controlling the technological innovation, the “box makers” like Compaq and Dell have little basis on which to differentiate their products. In a sagging economy, conditions are ripe for a devastating price war and a consolidation of the industry, which we have in fact seen in the last year. Two of the major players—Hewlett Packard and Compaq—are doing everything wrong in response to this situation, while two of the others?...
...leverage its manufacturing and marketing talent to enable it to deliver the kind of out-of-the-box, high-volume operation that made it dominant in PCs. Its partnerships with database king Oracle and Linux maven Red Hat (Linux is an increasingly popular--and open--alternative to Windows for Intel-based servers) give customers access to powerful options. And in November Dell announced a co-branding arrangement with data-storage king EMC. Although Dell operates mostly at the low end of the market, the idea is to climb steadily toward faster and more expensive machines as the technology arrives...
Dell's big drawback: it's still a box company. The Texas titan relies almost completely on Intel and Microsoft for its technology, whereas all its competitors have hefty research facilities of their...
Dell Computer, based in Round Rock, Texas, near Austin, builds its servers around standard Intel chips and Windows software--a standard that smothers innovation, according to competitors of those companies. Michael Dell retorts that "what standards do is drive out inefficiencies. Dell is in the business of productivity, and that's a good business." He adds that "there's plenty of innovation within the standards." Even if his idea of a snazzy innovation is chopping a foot off the height of his servers so that they fit more easily through customers' doors...