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Dude! Dell Still Soaring in Storage: Page 2 of 2

“The size of the market didn’t go up, so Dell’s market share had to go up,” says Arun Taneja of the The Taneja Group. “I’m surprised at the 68 percent growth -- that’s phenomenal. It shows that even in a bad economy, if you have good product and you service the hell out of it, you can sell. They’re hurting everybody in the market.”

Schneider said Dell held firm on pricing of its storage products rather than give in to price pressure to increase sales.

“Our average selling price has held up very well, and it’s exactly what we want to focus on,” he said. “We want to stay away from the deals that just didn’t make any money. We’re really focused on revenues and profitability.”

Dell says it expects to continue its storage momentum in 2004, as it plans to offer new products to capitalize on Microsoft’s Windows Storage Server, which should revitalize the low-end NAS market (see Sands Shift Under NAS Market).

— Dave Raffo, Senior Editor, Byte and Switch