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SJ Mercury/Reuters: Dell makes strategic shift to servers

“Dell Computer Corp. (DELL.O) on Thursday said its new line of
“back office” equipment and services would help it capture a
share of the business computing market and offset falling margins
in its personal computer business….”

“Dell said it would forsake the Sun-dominated market for
higher-cost 18 and 32 processor servers that run heavy operating
systems such as UNIX.”

“Instead, Dell said it would concentrate on gaining on rival
Compaq in the market for servers that run the Linux and Windows
2000 operating systems and are based on chips from Intel
Corp.


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