IBM, Dell Announce $6 Billion Service Pact



IBM's Global Services unit will provide an estimated $6 billion worth of services to Dell Computer customers under a deal announced today. Under the agreement, starting early next year IBM will service Dell Computer customers in the corporate, government, and education markets over a seven-year period.

The deal, which extends a March agreement between the two companies under which IBM agreed to supply Dell Computer with $16 billion worth of components, covers Dell Computer's line of desktop and notebook PCs, network servers, and storage products. Included are installation and basic warranty services, extended-warranty services, and high-availability services. As part of the arrangement, Dell Computer will gain access to 22,000 IBM field technicians worldwide.

Dell Computer officials say the deal will not have an impact on their company's existing service and support pacts with Getronics' Wang unit, and Unisys. "We will be giving our customers more choice in selecting IT solutions," says Dell Computer vice chairman Kevin Rollins.

IBM's global services group posted 1998 revenues of about $29 billion and is the company's fastest growing unit. Dell Computer's revenues over the past four quarters totaled $21.7 billion.

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