In a cost cutting move, Dell Computer Corp. has canceled plans to sell Unisys Corp. computer servers under the Dell brand name.
Susan Blount, a Dell marketing manager, said the recession prompted the decision. Rebranding and marketing the Unisys servers would be "an expensive thing to do," she said.
Instead, Dell has agreed to refer customers to Unisys, she said.
Unisys, of Blue Bell, and Dell, of Austin, Texas, signed an agreement in December 2000 to resell and promote each others' products.
At the time, the companies estimated that the agreement could generate $1 billion in shared revenue over three years.
Marty Krempasky, a Unisys spokesman, said yesterday that the two companies had been trying to renegotiate the deal for the last several months. He said a new agreement minus the rebranding plan could be signed within days. Dell, however, said it could take several more weeks.
Unisys has been hit hard by the slowdown in tech spending, and it has seen its revenue decline from $7.5 billion in 1999 to $6 billion in 2001. The company had hoped that agreements with Dell and other computer companies would help reverse the decline.
Unisys had similar resale and referral agreements with Compaq Computer Corp. and HewlettPackard Co. over the last few years, but those deals were ended last spring.
None of the agreements contributed substantially to Unisys' revenue, the company said.
By Wendy Tanaka To see more of The Philadelphia Inquirer, or to subscribe to the newspaper, go to philly.com
Mar 13, 2002 (The Philadelphia Inquirer Knight Ridder/Tribune Business News via COMTEX) |
