Strategic Partnership Between Dell and IBM

Dell and IBM, two industry giants, have announced a significant strategic partnership aimed at enhancing the capabilities of computer-related services for Dell customers. The agreement, worth potentially $6 billion over seven years, solidifies the complementary strengths of both companies and marks an expansion of their existing services relationship. This partnership is expected to benefit Dell's customers by providing a broader range of IT solutions, including installation and onsite warranty services for various Dell products.

Key Takeaways:

• The partnership involves IBM Global Services being a strategic provider of computer-related services to Dell customers, with a potential value of $6 billion over seven years.
• The agreement pairs Dell's direct computer systems capabilities with IBM's leading IT services, creating a comprehensive value proposition for Dell customers.
• The arrangement enhances Dell's global services reach and offers customers more choice in selecting IT solutions.
• The partnership is expected to benefit Dell's customers by providing installation and onsite warranty services for its desktops, notebooks, workstations, network servers, and data-storage products.
• The agreement builds on the $16-billion strategic technology agreement announced by IBM and Dell last March.
• The partnership is believed to be the largest of its kind in the IT industry, with IBM's services portfolio complementing Dell's global services network.
• Kevin Rollins, Dell vice chairman, praised IBM's services portfolio and scale, stating that the combination of both companies' strengths creates an extraordinary value proposition for Dell customers.
• Samuel J. Palmisano, senior vice president and group executive, IBM Global Services, emphasized the importance of IT in modern businesses, highlighting the agreement's potential to ensure Dell's customers' products operate at peak efficiency.

Statistics:

• $6 billion: potential value of the partnership over seven years
• $21.7 billion: Dell Computer Corporation's revenues for the past four quarters, ranking it No. 78 among Fortune 500 companies and No. 210 in Fortune Global 500
• $29 billion: IBM Global Services' 1998 revenues, making it the world's largest information technology services provider
• 130,000: number of professionals serving customers in 160 countries through IBM Global Services
• 78: ranking of Dell Computer Corporation in the Fortune 500
• 210: ranking of Dell Computer Corporation in the Fortune Global 500

Sources:

• Dell Computer Corporation's press release (1999)
• IBM press conference (1999)
• Fortune Magazine rankings (1999)
• IBM Global Services website (1999)
• Business Wire (Sept. 27, 1999)