Dell’s Services Play – Quickly Integrated

My previous post consisted of my feeling that the acquisition of Perot Systems by Dell would not work and that the move into services is a big stretch for Dell.  With that said, I must say that I am very impressed with the speed and totality that Dell as integrated this acquisition into their on-line branding and over-all business persona.  

However, a key item that bolsters my opinion that this is a sunk cost can be easily realized by the fact that Dell has decided to keep the branding of Perot Systems. 

This fact, to me, is a big misstep similar to the one Cisco decided on when it acquired Linksys years ago. Cisco decided to keep the Linksys brand in its entirety until recently. Cisco did not have any integration with Linksys whatsoever until years after the fact. Dell’s saving grace on this point is that they still have their name present (Dell Perot Systems) and a nice and informative tag-line under their logo (Dell perotsystems.)  I think Dell may have learned volumes here… 

These facts do not dispel my thoughts that the acquisition is a bust, but more that the acquisition was well thought out and planned. 

Execution is ALWAYS key.

Dell, and their new-found (re:paid for) IT Services division would be better served if they took Perot’s client base, contracts, prior methodologies, and customer feedback and acted accordingly. This act would also entail the dumping of the Perot Systems brand.

 I stand by my earlier post. Good luck Dell.

Todd