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As IBM's Business Model Shifts, Dell Pact Diminished
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Posted by: TotalRecall
Noting that times have changed, Dell Computer said it has pulled back from two major pacts with IBM.
In 1999, Dell signed two major deals with IBM. In March of that year, it signed an agreement to buy components such as disk drives and flat screens from Big Blue. In September, it announced a partnership to offer its customers computer-related services from IBM Global Services. Both deals were touted as multiyear initiatives, with the parts deal estimated to be worth $16 billion over seven years and the services pact pegged at $6 billion.
The components deal wound down as IBM stopped making many of the parts Dell once bought, such as flat-panel monitors and hard disk drives. On the services side, the two companies are working together on occasion, but not to the degree originally envisioned under the pact.
C|Net has the full story.
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