Dells Latest Challenge to HP
Right now, Dell is only providing companies with a few solutions. For the
most part, it's centered on its PC business. But with the help of offerings
provided by Perot Systems, all that can change. Dell will be everywhere in the
enterprise. It can sell companies on its PCs, it can offer them consulting
services and it can even help organizations manage data centers. Those
companies that Dell hasn't been able to partner with on the PC side can still
become partners on the Perot side.
Assuming Dell's employees do a good job and customers are happy with the services it provides, it's entirely possible that when it's time to buy new PCs, Dell will top the list. Many (but certainly not all) companies like to work with one company that can provide viable services across the board, rather than partner with several companies that provide just one service each. With any luck, Dell will be able to build strong relationships through either branch of its operation to benefit the other.
Looking ahead, that kind of ability is extremely dangerous for companies that Dell competes with. It's especially dangerous for HP, which has done a fine job over the past few years of rebuilding its relationship with the enterprise and capturing significant share in the space. Although HP provides several enterprise solutions, Dell is in the process of acquiring a company that enjoys billions of dollars of revenue and strong relationships with other companies.
With the acquisition of Perot Systems, Dell will have a strong position in the marketplace. Gone will be the days when the PC maker only offered computers to the enterprise. Soon, it will be delivering a full-fledged, end-to-end experience for companies that are looking for more than help getting the latest and greatest notebook into the hands of employees.
Although there is no guarantee that Dell will acquire approval for the deal, and there's still no way to tell if it will definitely help Dell's business, I think it will. Dell has made the right move by trying to expand its offerings to companies. It will help Dell sell more PCs. And, in the end, it could help Dell achieve more success in the enterprise space.
Perot is Dell's key to the future.