Dell and Microsoft Join Forces to Develop Network Storage Products

ROUND ROCK, Texas, and REDMOND, Wash., Oct. 23, 2000 — Dell, a world leader in Internet commerce and infrastructure computing, and Microsoft Corp. today announced a strategic alliance to develop network attached storage (NAS) systems powered by Dell’s PowerVault™ storage platform and Microsoft® Windows® 2000 technology.

Dell and Microsoft will create new technologies for providing enterprise-class customers with high-performance, multiplatform storage that leverages existing network investments. Pricing and specific availability dates of the new systems were not disclosed, but the companies plan to make the first products available early next year.

This alliance continues Dell’s aggressive moves in the storage industry by enhancing its NAS offerings to address the file sharing needs of both mid- and large-sized enterprises. With its PowerVault line of storage solutions, Dell is currently the sixth largest storage products provider worldwide 1 . Dell achieved 70 percent growth in year-over-year sales of external storage products in the second quarter of this year and reported overall storage sales approaching $1 billion annually. The NAS industry will experience a compound annual growth rate (CAGR) of 66 percent, growing from $850 million in 1999 to $6.57 billion by 2003, according to industry analyst firm International Data Corp. 2

“We are pleased to partner with Microsoft to deliver economic breakthroughs in network storage that combine the power of Windows 2000 with the scalability and reliability of our storage systems,”
said Russell L. Holt, vice president and general manager for Storage Systems at Dell.
“Dell’s new NAS systems will offer our customers fast, anytime network access to information across heterogeneous environments, reinforcing our commitment to providing technology optimized for price, performance, and today’s Internet-dependent economy.”

“We’re excited that Dell has chosen to base its new PowerVault NAS appliances on Windows 2000,”
said Bill Veghte, vice president of the Embedded and Appliance Platforms Group at Microsoft.
“Windows 2000 is a high-performance, reliable, scalable and manageable platform that enables great storage appliance solutions.”

Based on Microsoft Windows 2000, Dell PowerVault NAS appliances will enable easier setup, deployment and management, allowing customers to get their storage system up and running quickly. In addition, Windows 2000 core technologies enable a higher level of interoperability, scalability and reliability required by enterprise customers needing to manage heterogeneous environments.

For more information on Dell’s PowerVault storage products, go to .

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

About Dell

Dell Computer Corporation (Nasdaq: DELL) is the world’s leading direct computer systems company, based on revenues of $28.5 billion for the past four quarters, and is a premier provider of products and services required for customers to build their Internet infrastructures. The company ranks No. 56 on the Fortune 500, No. 154 on the Fortune Global 500 and No. 3 on the Fortune
“most admired”
lists of companies. Dell designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained on the World Wide Web at .

Dell and PowerVault are trademarks of Dell Computer Corporation.

Dell is a trademark of Dell Computer Corporation.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Fortune 500 is a registered trademark of Time Inc.

Dell disclaims any proprietary interest in the marks and names of others.

1 Source: IDC 1999 Worldwide Disk Systems Market Forecast and Review. Report #W21352, Dec. 1999.

2 Source: IDC 1999 Worldwide Disk Systems Market Forecast and Review, Dec. 1999.

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