Dell Banking on Major Server Refresh

Dell (NASDAQ: DELL) reported its fourth quarter and full year fiscal 2012 results late Tuesday, showing continued growth in the enterprise sector.

For the fourth quarter, Dell’s Net Revenue came in at $16 billion which is a two percent year-over-year increase. Net Income during the quarter, fell by 18 percent on a year-over-year basis to $764 million. Revenue for the 2012 fiscal year was $62.1 billion, a 1 percent increase. Net Income for the full year was $3.5 billion up by 33 percent over 2011.

Looking forward, Dell CEO and Founder Michael Dell, sees a bright future for servers in 2012.

“I think what we’re seeing is the replacement cycle actually accelerating a bit on servers,” Dell said during his company’s earnings call.

Among the reasons why the replacement cycle is accelerating are the gains in processor power as well as what’s going on with solid-state technology. Those gains will enable a new era of more intense virtualization loads. Dell plans to take full advantage of those gains in an upcoming server launch.

“So we’re super excited about our 12G server launch, which is coming in the first quarter,” Dell said. “Obviously, virtualization is a big deal and we’re simplifying systems management, really going after the bigger workloads and accelerating the movement of work from minicomputer and mainframe environments onto our 12G platforms.”

Read the full story at ServerWatch:
Dell Banking on Major Server Refresh

Sean Michael Kerner is a senior editor at, the news service of the IT Business Edge Network, the network for technology professionals. Follow him on Twitter @TechJournalist.

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