{"id":4737,"date":"2009-09-21T08:17:00","date_gmt":"2009-09-21T08:17:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/the-dell-finally-tolls-but-is-this-the-right-fit\/"},"modified":"2009-09-21T08:17:00","modified_gmt":"2009-09-21T08:17:00","slug":"the-dell-finally-tolls-but-is-this-the-right-fit","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/the-dell-finally-tolls-but-is-this-the-right-fit\/","title":{"rendered":"The Dell finally tolls – but is this the right fit?"},"content":{"rendered":"

So Dell finally made its major play into the IT services enterprise arena announcing a <\/em>$3.9bn deal<\/em><\/a> for the Texas-based Perot Systems.  Unlike the HP\/EDS mega-merger of last year, there is a lot less overlap between the merging entities, however, you have to assume this is more of a play by Dell to transform its commodity hardware business by refocusing its future strategy on services-led engagements.<\/em><\/p>\n

However, while there isn't much overlap, there also isn't a lot of synergy.  Why should Perot customers want to buy Dell equipment all of a sudden?  Most CIOs today are looking to move away from hardware-centric IT delivery models, and onto more on-demand cloud computing models<\/a>.  If anything, it's more of a play for Perot to push services onto Dell's customer-base.  It also opens up the lucrative healthcare IT market to the newly-merged entity.<\/p>\n

While I applaud a bold move by Dell to transform its business model, work has yet to be done to elevate Perot's IT\/BPO services business to the top echelon of service providers at a global level.  Namely, Perot hasn't  yet fully exploited its presence in healthcare to position leading edge IT\/BPO offerings in that space, especially with the market ripe for exploitation in light of the new government initiatives, namely ICD-10 compliance and digitization of patient records.  If Dell can quickly leverage this merger to make a further strategic acquisition in this space, then you can see a new player emerging.  However, if they spend a whole year trying to restructure these firms and take their eye off the ball with regards to broadening the service offerings, this could present a window for several of Perot's services competitors in the healthcare space to step in…<\/p>\n

You also have to wonder whether the largely US-dominated vendors are going to continue to consolidate in light of fierce competition from the Indian-dominated global providers.  ACS-CSC anyone?<\/p>\n","protected":false},"excerpt":{"rendered":"

So Dell finally made its major play into the IT services enterprise arena announcing a $3.9bn deal for the Texas-based…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,51,81],"tags":[],"organization":[],"ppma_author":[19],"class_list":["post-4737","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-cloud-computing","category-it-outsourcing-it-services"],"yoast_head":"\nThe Dell finally tolls - but is this the right fit? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/the-dell-finally-tolls-but-is-this-the-right-fit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Dell finally tolls - but is this the right fit? 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