DELL lands another big one. DELL has been supplying First Union for a while, but this takes their relationship to a new level. Other will undoubtedly follow. Looks like Inacom, and other resellers, can read the writing on the wall.
Fez
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Monday November 8, 12:00 am Eastern Time
Dell in three-year $100 mln pact with First Union
By Ilaina Jonas
NEW YORK, Nov 8 (Reuters) - Dell Computer Corp. (NasdaqNM:DELL - news) on Monday will unveil a contract worth up to $100 million to be the exclusive supplier of personal computers to First Union Corp. (NYSE:FTU - news), the nation's No. 6 largest bank, the latest in a string of such corporate contracts for Dell.
The three-year deal calls for the the world's No. 2 personal computer maker to replace First Union's 65,000 computers with a standard set of Dell's desktop, deskside or notebook computers.
Dell, which recently moved up to become the No. 1 seller of PCs in the United States due in part to a surge in corporate contracts, will replace computer reseller Inacom Corp. (NYSE:ICO - news) as First Union's previous computer supplier, the bank said.
First Union may extend the contract to include Dell's servers, the most powerful category of personal computers, which typically are used to manage networks of other PCs, once these Dell machines are certified to handle the banking company's requirements, a First Union executive said.
Ann Przygocki, First Union, vice president and manager of its desktop services group said the contract began Aug. 9, but the company did not want to publicize it until it was ready to begin ordering Dell systems in volume.
The contract with First Union is one of about 10 the Round Rock, Texas-based computer maker has scored within the past year with a major company seeking to standardize their computers, Dell spokesman Andy North said. Others deals include Boeing Co. (NYSE:BA - news), Motorola Inc. (NYSE:MOT - news), and Ford.
By standardizing on Dell PCs, the Charlotte, N.C.-based banking and brokerage company said it expects to save about 30 percent over the life of the contract |
