Kemble, Austrailia is buzzing over Dell/IBM.
Further IBM, Dell deals tipped
By Emma Connors, Senior IT writer
The $US22 billion ($34 billion) worth of business signed
between IBM Corp and Dell Computer Corp this year
could be followed by further co-operative deals in the
personal computer business following a new appointment
to the Dell board of directors.
Last week Dell Computer Corp announced that Dr
James Vanderslice, formerly senior vice-president at
IBM, had joined Dell as vice-chairman, reporting to the
chairman and chief executive officer, Mr Michael Dell.
The appointment was described as a blow for IBM by
some analysts, who regarded Dr Vanderslice, a 30-year
IBM veteran, as a key point man for IBM's chairman and
chief executive, Mr Louis Gerstner.
In the mid-1990s Dr Vanderslice managed to turn
around IBM's ailing disk storage business.
Earlier this year he helped mastermind the cross-licensing
agreement which will see Dell Computer source $US16
billion ($25billion) worth of IBM storage products,
semiconductors, networking equipment and display
technology during the next seven years.
In September the companies cemented their alliance with
a services-based deal that could be worth as much as
$US6 billion over seven years.
The agreement will see IBM Global Services supply a
range of installation and warranty services to Dell
customers.
In Australia the deal is likely to see some of the 6,000
employees of the IBM/Lend Lease/Telstra joint venture,
IBM GSA, doing work for Dell's corporate customers.
Those who have observed Dr Vanderslice's close
partnership with IBM chairman Mr Gerstner believe the
former's move to Compaq Computer is likely to enhance
the relationship between the companies.
Dell Computer has advanced its hold on the personal
computer market this year, and looks set to claim the
No1 spot from Compaq Computer.
IBM Corp, which once owned the category, is now
rated third.
IBM's PC business has not been profitable for the past
four years. Last year the division lost almost $US1 billion
and so far this year the business has cost the company
$US311 million.
IBM's recently announced decision to pull its PCs from
US stores and sell only on the internet has fuelled
speculation the company will choose to get out the PC
business altogether in order to concentrate on services,
software and more profitable hardware products.
However, IBM has so far refuted any such suggestions. |
