Dell has unveiled a new storage device that targets small and medium sized businesses in an attempt to increase the firm's overall appeal in the segment.

Storage needs for the small business segment are underserved, Dell chief executive Michael Dell argued at a company event in San Francisco.

Such firms are forced to use consumer technologies such as DVDs, or are offered stripped down enterprise grade technology.

While the first option lacks the capacity that many businesses require, the latter is too complicated and expensive to small firms without a dedicated support staff.

"It either costs too much or does not do what you want it to do," said Dell.

The vendor's new MD3000i claims to close the gap between the low-end and high-end markets.

The device offers remote management technology to improve ease of use, and operates on the iSCSI protocol, rather than the more prevalent Fibre Channel, allowing it to operate over an Ethernet network.

"This is critical for SMBs which need advanced storage but do not see Fibre Channel as the way to go," said Dell, adding that iSCSI is less expensive.

To minimise down-time from maintenance and outages, the device offers redundant power supplies and cooling fans. Users can pool up to 16 of the servers in a network, allowing a maximum 18TB of storage capacity.

The device is available today starting at $7,000, with a fully configured system costing around $13,000.

Dell claims that it is undercutting systems from competitors such as HP and IBM on price. The fully configured MD3000i comes in at about 13 per cent less than the cheapest competitor, the company claimed.

Dell previously targeted only the enterprise storage space through a partnership with EMC. The MD3000i, however, was developed exclusively by Dell.

A single storage device does not make a great impact on the overall market, Dell admitted, but the executive argued that firms are typically seeking for a single vendor for all their technology.

"Products like these are often sold with x86 servers," he said.

• A video of Michael Dell launching the MD3000i is available on vnunet.com TV