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Dell profits drop by 48% as IT hardware market suffers

Dell profits plummeted for the quarter, just a week after Hewlett-Packard also posted a loss. Read all about it, plus the latest from VMworld Europe, in our weekly news roundup.

Systems Channel News Roundup for Feb. 23-27, 2009.

Dell profits cut in half

Last week's news about Hewlett-Packard's profits was bad, but things in the IT hardware market got a whole lot worse yesterday, when Dell said its profits dropped by 48% compared to the year-ago quarter. Dell had previously announced plans to cut $3 billion in costs by 2011; the company added another $1 billion to that goal yesterday. HP last week reported a 13% decrease in quarterly profits.

Report: VMware hypervisor still tops

Despite increased competition from Citrix Systems and Microsoft, VMware is still the vendor to beat in the server virtualization market. That was the word this week from Burton Group senior analyst Chris Wolf, who reported the results of his hypervisor comparison study at VMworld Europe 2009 in Cannes, France, according to The study evaluated VMware Infrastructure 3, Citrix XenServer, Microsoft Hyper-V and Virtual Iron based on several criteria, including high availability, live migration, licensing and support.

Also at VMworld this week, VMware announced VMware Partner University, a new online training and education program for partners.

HP, Sun sign Solaris reseller deal

Hewlett-Packard and Sun Microsystems expanded their OEM agreement this week, allowing HP to resell Sun's Solaris 10 operating system on its HP ProLiant x86 systems, according to The deal does not extend to HP's Integrity servers, which run the company's own version of Unix, HP-UX, and ProLiant will continue to support Novell and Red Hat Linux distributions as well.

In other HP news, ProCurve channel chief Kevin Kabat spoke with this week about competition with Cisco Systems in the data center.

Check out last week's Systems Channel News Roundup.

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