Dell Trumpets Q1 Server Gains, HP Disputes Data

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Ganthier maintained that partners have the ability to make more money selling a full HP solution than a Dell solution. He said the new HP PartnerOne program changes, which go into effect May 1, dramatically increase the ability for partners to make more money with a simplified "pay for performance" model that includes a lucrative backend rebate program and no cap on how much partners can make.

HP also has put in place a competitive program for partners competing against Dell that provides resources to match any Dell server competitive price. That program went into effect in April and runs until May 31.

"Depending on the deal size or the number of employees, we will match or beat [Dell] on any one of them," Ganthier said, noting that HP is providing "less than zero" percent financing to win deals. "You are hearing what I would call annoyance in the folks from Austin because the programs are working. The products are getting great reception. And we are executing and delivering on everything we said we would."

HP wasn't the only top vendor to see server market share declines during the quarter. No. 3 IBM dropped 14.4 percent to a 9.8 percent share, while No. 4 Fujitsu saw share drop15 percent to 3.2 percent, according to Gartner's preliminary data.

Aside from Dell, Cisco was the only other vendor in the top five to see market share gains. Cisco's market share grew 39.5 percent to 2.4 percent.

Haas said Dell has a big advantage with Dell Founder and CEO Michael Dell leading the company's transformation.

"Michael has been at the helm for 29 years. The only question is can we accelerate the investment of our transformation," he said. "Customers are extremely satisfied with where Dell is. We've made $16 billion in investments and acquisitions to fill out our portfolio over the last three years. Momentum is clearly in our favor."

STEVE BURKE contributed to this article.


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