Dell - Wikipedia
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Dell's new PowerEdge servers did not require a major investment in proprietary technologies, as they ran Microsoft Windows NT on Intel chips, and could be built cheaper than its competitors.
Three years later, Dell passed Compaq as the top provider of Intel-based servers, with 31 percent of the market. Dell's price advantage was tied to its ultra-lean manufacturing for desktop PCs,  but this became less important as savings became harder to find inside the company's supply chain, and as competitors such as Hewlett-Packard and Acer made their PC manufacturing operations more efficient to match Dell, weakening Dell's traditional price differentiation.
As a result, the company was selling a greater proportion of inexpensive PCs than before, which eroded profit margins.
Servers built for today's most demanding workloads. And tomorrow's.
The last cycle started aroundthree or so years after companies started buying PCs ahead of the perceived Y2K problems, and corporate clients were not expected to upgrade again until extensive testing of Microsoft's Windows Vista expected in earlyputting the next upgrade cycle around Consumers had become the main drivers of PC sales in recent years,  yet there had a decline in consumers purchasing PCs through the Web or on the phone, as increasing numbers were visiting consumer electronics retail stores to try out the devices first.
Dell's rivals in the PC industry, HP, Gateway and Acer, had a long retail presence and so were well poised to take advantage of the consumer shift. The original Dell model was known for high customer satisfaction when PCs sold for thousands but by the s, the company could not justify that level of service when computers in the same lineup sold for hundreds. Hunter, who noted that Dell's DNA of cost-cutting "got in the way," aimed to reduce call transfer times and have call center representatives resolve inquiries in one call.
With the return of Michael Dell as CEO, the company saw immediate changes in operations, the exodus of many senior vice-presidents and new personnel brought in from outside the company.
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These include elimination of bonuses for employees with some discretionary awards, reduction in the number of managers reporting directly to Michael Dell from 20 to 12, and reduction of " bureaucracy ".
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