Dell insisted that it can still claw back market share in the server market as it released new servers designed for large cloud computing environments.

Steve Schuckenbrock, president of Dell's large enterprise business, said Dell was banking the farm that people would move to x86 servers. Of course we have not heard of this strategy before, it is just a feature of almost every hardware company out there, even Sun/Oracle. Schuckenbrock told Rueters that customers are moving to x86 infrastructure and Dell would continue to take advantage of that.

The fact is that Dell only makes x86 servers for the low to midrange market. However, x86 is only seen as being viable for the low to midrange market. Dell does well in this market it is the world's Number 3 server vendor by revenue, with an 11.5 percent market share in the fourth quarter of 2009, according to IDC. While it is far behind IBM and HP server market, Dell gained share in the October-December period by growing sales 4.5 percent.

However a lot of this was at the expense of Sun Microsystems and the fact it was bought out by oracle and might be a one off. Dell showed off its PowerEdge C-series servers, which are targeted at dense, complex cloud computing environments such as Web service providers, social networking firms like Facebook, and those building "private clouds" that are used internally by individual companies. No word on pricing.