Entry into Servers
Dell entered the market for low-end PC servers (those priced under $25,000) in the second half of 1996. The company had opened a 23,000-square-foot plant dedicated to server production, trained 1,300 telemarketers to sell servers, assigned 160 sales reps with systems know-how to big customer accounts, and recruited a staff of systems experts to help the sales reps. It had contracted with companies such as Electronic Data Systems, which had in-depth systems and networking expertise, to help provide service to large customers with extensive server networks. Dell's server plant used "cell" manufacturing instead of an assembly line to permit faster product updates and keep costs low; there were 30 cells at the plant, each with a self-contained work team that performed the entire assembly process from a kit of components and a customized motherboard.