Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    Dell Ends Purchasing Deal With IBM

    By
    Jeff Burt
    -
    February 12, 2003
    Share
    Facebook
    Twitter
    Linkedin

      Dell Computer Corp. has ended a seven-year, $16 billion contract to buy hardware components from IBM, and is cutting back on a $6 billion services deal.

      The deals, struck in 1999, called for Dell to buy everything from disk drives and chips to flat-panel monitors. But over the past year, IBM has sold off several of the businesses that made these components. For example, the Armonk, N.Y., company last summer announced that it was selling off its hard-drive business to Hitachi Ltd. of Tokyo for $2.05 billion.

      In 2001, IBM sold its flat-panel business to Chi-Mei Corp., of Taiwan.

      Bruce Anderson, a Dell spokesman, said this wasnt a situation where the Round Rock, Texas, company flipped a switch and turned off the deal.

      “It was beginning to phase down when a lot of the businesses that IBM was in … were sold off,” Anderson said. “It was a supplier relationship, and we have many suppliers in these areas, so it was not a disruption of any kind to our supply chain.”

      As far as the services deal goes, Dell will no longer proactively offer IBM services, but will offer them at the request of a customer, he said.

      IBM spokesman Joseph Stunkard said Dells decision will have “very little impact. As far as a financial impact, it will not be material to IBM.”

      A report issued by Lehman Brothers on Dells decision concurred. Given that IBM exited the primary hardware markets, there will be little impact on IBMs revenue there, according to the report by analyst Dan Niles.

      IBM revenues from the services deal—which Niles called “largely break/fix, installation and parts”—was less than $200 million a year. “It has negligible impact going forward,” Niles said.

      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.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×