Dell Computer Corp. cut prices Wednesday by up to 16.8 percent on its midrange and high-end PowerEdge servers.
The price reductions, affecting Dell's dual-processor PowerEdge 4100 and quad-processor PowerEdge 6100, are the result of industry component cost reductions, officials from the Round Rock, Texas, company said.
Dell's price slashing is the latest move by the direct marketer to gain share from more seasoned PC server manufacturers such as Compaq Computer Corp., Hewlett-Packard Co. and IBM.
"Dell is very aggressive," said Peter Lowber, senior analyst with Datapro Information Services Group in Lexington, Mass. "They are putting a lot of pressure on Compaq and some of the other big vendors, some of which also have Unix markets to watch as well. It is a real dog-eat-dog marketplace."
Sample configurations of Dell's price cuts include the following:
*the PowerEdge 4100, with a 200MHz Pentium Pro processor, 256MB RAM, three 9GB hard drives and RAID, is now $14,008, down from $16,839, a 16.8 percent reduction.
*the PowerEdge 4100, with a 200MHz Pentium Pro, 64MB RAM and a 4GB hard drive, is now $6,549, down from $6,895, a 5 percent drop.
*the PowerEdge 6100, with a 200MHz Pentium Pro, 256MB RAM, and a 9GB hard drive, is now $12,494, down from $14,094, an 11.4 percent decrease.
Dell can be reached at www.dell.com.