The Channel logo

News

By | John Oates 6th June 2007 09:14

Dell eyes up service companies

Scottish buy just the beginning

Michael Dell says his company needs to buy service companies to improve on growth.

The direct seller has already said it needs to make big changes in strategy, and has started talking about increasing indirect sales through the channel. Adding services is another Damascene conversion.

Talking to the Financial Times, Dell said future growth would come from acquiring services companies as well as organic growth.

Dell said: "We made a small acquisition in Scotland, which has worked out quite well, and I think you will see more acquisitions to add capability to our services team."

He added that services revenue is growing faster than hardware sales and represents a huge opportunity.

Dell bought Scottish reseller ACS in late 2006. Observers said at the time part of the reason for the buy was to get hold of services consultants who would otherwise be hard to recruit to a hardware company.

In December 2006, Dell hired former EDS chief operating officer Steve Schuckenbrock to beef up its services business.

Services is a business most other hardware vendors got into some time ago - HP bought PriceWaterHouseCoopers's consultancy arm back in 2000*.

More from the FT here. ®

*See comments page.

comment icon Read 1 comment on this article alert Send corrections

Opinion

Lightning

Jack Clark

Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on