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    Perot Systems Becomes Dell Services

    By
    Jeff Burt
    -
    November 3, 2009
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      Dell has completed its $3.9 billion offer to buy Perot Systems, a move that will give the PC maker a significantly larger services business.

      Perot will now become Dell Services, which will be headed by former Perot CEO Peter Altabef. Altabef will be president of Dell Services and will report to CEO Michael Dell.

      Dell announced the completion of the deal Nov. 3.

      “Customers around the world want flexible, scalable solutions to reduce complexity and drive even greater benefit from IT,” Michael Dell said in a statement. “The Dell Services business-formed out of the powerful combination of Dell and Perot Systems-is an exciting step forward in our ongoing commitment to develop and provide best-value IT solutions.”

      Dell officials announced Sept. 21 that Dell was buying Perot to bulk up its services business, a key part of the strategy under Michael Dell to lessen his namesake company’s reliance on its traditional PC business and expand its capabilities.

      The hope within Dell is that bringing in Perot Systems will enable it to build a services business that could rival those of IBM and Hewlett-Packard.

      Acquiring Perot Systems expands Dell’s services reach into such areas as hosting, consulting, applications and business-process outsourcing, according to the company. It also adds to Dell’s existing managed and modular services.

      With Perot in hand, Dell not only increases its customer base, but also will have more than 41,000 services employees and annual services revenue of about $8 billion.

      Dell officials said the company now owns more than 90 percent of Perot stock, and expects to get the remaining shares “promptly.”

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

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