Executive Summary (This is a document excerpt)

While the proposed acquisition of Perot Systems by Dell does not come as a surprise — Dell has been orchestrating a more determined services strategy — it anchors the commitment. The deal, valued at $3.9 billion, will fill some of Dell's gaps in its IT services portfolio and help the company get closer to the needs of a broad range of technology customers. Even though it is a sizable acquisition for Dell, the deal alone will not be enough to immediately transform Dell's services business the way EDS changed HP. For Dell to make the acquisition work, it needs a concrete execution strategy to reconcile the vast strategic differences that exist between its traditional product focus and its expanding services business. Rather than attempting to shape Perot to fit Dell's services standardization strategy, Dell needs to use the acquisition to develop a new services value proposition, one that emphasizes and values the vertical market expertise, customization, and relationships that have traditionally been Perot's strengths. For vendor strategists, the acquisition lends further fuel to a rapidly changing — and consolidating — technology marketplace that will star vendors offering the full suite of technology across hardware, software, and services to business customers.

Buy Risk-Free

Download and print PDF immediately. Price: US $199

Our Money-Back Guarantee: If you are not completely satisfied, return it for a full refund within three weeks of your online purchase.

Already a Forrester Client?
Log in to read this document.