Storage is a bright spot for Dell, which is in the midst of a turnaround after sluggish sales and profit prompted founder Michael Dell to return to the chief executive's post almost a year ago. Storage is a key part of its strategy to boost growth. Dell last month said it would spend $1.4 billion for storage company EqualLogic to beef up its lineup.
"Storage is a fast-growing market segment; there is opportunity there," said Praveen Asthana, worldwide director of marketing for Dell. "It's a good area for us to focus on."
Storage sales rose 8% in Dell's most recent quarter, ended Nov. 2, which was the same as Dell's overall growth. But in the previous quarter storage revenue jumped 12%, to just 4% for the company overall.
Storage sales help Dell's lucrative server sales, says IDC analyst Brad Nisbet. Many corporate customers like to buy servers and storage from the same company.
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