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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.

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