Acer Targets Corporate Market With More Server Offerings

Taiwan based Acer, the world's second largest PC vendor, has revealed that it will become a more aggresive player in the global x86 server market which is dominated by the likes of Hewlett-Packard and Dell.

The company has successfully managed to displaced Dell as the main contender to HP's domination by releasing a number of low priced netbooks and desktop computers which have flooded the market and made of Acer, a quasi-household name.

In an interview to Bloomberg on Friday, Gianfranco Lanci, the CEO and President of Acer, said that “You can’t be a PC player just on consumer, we need to be a PC player in all segments," before adding that “This year, you’ll see a big effort from our side on commercial.”

And Acer's progression in the server segment is likely to be spectacular in 2010 if they can replicate their meteoric rise in the consumer market.

Acer plans to derive 4 percent of its total revenues from servers & storage in 2010 with twice the profit margins - between 15 and 20 percent - compared to its consumer range.

By comparison HP and Dell get up to 13 percent of their revenues from the server and storage divisions with the overall gross margin likely to be hovering around 25 percent, aided by value added services.

Unlike Dell or HP, Acer doesn't sell its corporate gear online, only through third party resellers which not only adds to the price but also makes it more difficult to get the latest technology to the market fast and at a competitive price.

Acer's Altos range of servers - which are all x86 models - will face some very tough competition from Dell's beefed-up Poweredge range and HP's Proliant and Integrity solutions.

Acer's top of the range current SME server in the UK, the Acer Altos G5450, costs £1039+VAT at WStore and comes with a single Dual Core Opteron 2212 processor, two 500GB hard disk drives and 2GB DDR2 memory.

As a comparison, the Dell PowerEdge T410 comes with two Dual Core Intel Xeon E5502 processors, 4GB DDR3 RAM and two 500GB HDD plus three-year warranty for £1078+VAT.