PC Makers’ Unrequited Love Tue 29 Sep 09
Why Dell and Xerox are going after services companies.
Recently hardware firms Dell, HP and Xerox made a flurry of announcements about combining selling hardware and providing technology consulting services. Dell said it would acquire Perot Systems for $3.9 billion. HP's announced it will re-brand consulting firm Electronic Data Systems as HP Enterprise Services. Not to be outdone, Xerox said this week that it’s buying Affiliated Computer Services (ACS) for $6.4 billion.
There may be some sound logic behind the Dell and HP moves, but frankly I just don't see it. Judging from how the stock market reacted to Dell's announcement, I may not be alone. Xerox's move does however present an interesting opportunity.