CNET News.com: Dell to concentrate on supplying Net firms

“Dell Computer no longer wants to be thought of as a mere PC
maker, CEO Michael Dell proclaimed today, launching an array of
services and programs designed to reinvent the company as a
provider of Internet infrastructure. “

“Although Dell continues to rake in profits from PC sales, many
analysts and computer executives have predicted desktop profits
will plateau in the future, which could potentially stunt Dell’s
historically phenomenal growth. In any event, the rush among
businesses of all sizes to expand onto the Internet has prompted
Dell and other established computer companies to use their brand
names and customer relationships to expand into back-end hardware
and services.”

“Under the new strategy, for instance, Dell will more
strongly emphasize selling or providing services, a market where it
has deliberately limited activity before.”

“As previously reported, Dell announced the PowerApp appliance
server line, running on Red Hat Linux and Microsoft’s Windows 2000,
and designed for Web hosting and traffic management applications.
The servers start at $1,899.”

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