Dell looks for synergies

Dell Inc.'s acquisition of Perot Systems opens a broader range of services to take on health, cloud computing, outsourcing and data centers in the government market.

Not known as an acquirer, Dell Inc. made a big splash in the market with the largest acquisition in its history when it picked up Perot Systems.

In a deal worth $3.9 billion, Dell bought Perot which will let the company more aggressively pursue opportunities in health information technology, cloud computing, IT outsourcing and data center virtualization and optimization, said Frank Muehleman, vice president and general manager of Dell’s North American Public Business Group.

Now sometimes referred to as Dell Perot Systems or still simply as Dell, the company enjoyed particularly strong success in the federal market in 2009, leapfrogging four slots from No. 15 to No. 11 on the 2010 Top 100 list, as it grew its prime contracting revenue from $1.9 billion to $2.7 billion in one year.

Muehleman said the addition of Perot Systems’ strong capabilities in applications, technology, infrastructure, business processes and consulting will complement Dell’s ability to deliver integrated IT solutions that help agencies focus on their mission and make the most cost-effective use of limited IT budgets.

The companies share synergies that could enable them to be a real powerhouse, particularly in the burgeoning health IT market, said Ray Bjorklund, senior vice president and chief knowledge officer of FedSources. “You take a Dell and Perot combination, where they’re leveraging domain expertise and an ability to deliver sophisticated services along with all the IT infrastructure, and that could be a pretty strong play in a niche market like health IT,” he said.

However, the new Dell will need to work to prove that its solutions will be platform-agnostic and use best-of-breed components, not just Dell hardware. It’s a message that HP, Xerox and IBM — all of which have acquired major IT services and solutions firms — also must prove in the public sector.

“That’s very, very important because if you’re going to expand a services business to hopefully bring on more revenue, you can’t have that services business perceived as being prejudicial to one platform versus another,” Bjorklund said.

Muehleman noted that Dell excelled in 2009 by recognizing and addressing the changing needs of its federal clients. He cited the push of the company’s federal team last year into new areas by providing digital forensics and multilevel security solutions to public-sector clients.

“The need to balance innovation with the requirement of optimizing IT expenditures, cutting costs and achieving energy savings remains top of mind for our customers,” Muehleman said, noting that Dell is also supporting agencies as they adapt to a more virtual and mobile computing environment.

Moving into 2010, Dell is focused on providing thought leadership in cybersecurity, data center efficiency, rugged solutions and health care information exchanges.

In a key win this year, Dell was awarded a $120 million outsourcing contract to process citizenship and immigration applications for the Homeland Security Department. Dell was also selected to serve as the Army Corps of Engineers’ Knowledge Online Service Desk provider and had its contract with the Rock Island Arsenal renewed for another five years after successfully accomplishing several IT consolidation and migration initiatives.

In another significant development, Muehleman said, Dell announced an alliance earlier this year with Integrity Global Security to provide a secure, consolidated client solution through which “government employees can access data of varying security levels on a single Dell system."

 

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.