Back in July of this year, I wrote an entry titled “Dell Hits the Services Chasm.”
The article calls out the fact that Dell was thrashing in a place called “The Services Chasm” where product and service strategy are not effectively aligned to meet market requirements. Today, Dell announced a very bold move to break out of the services chasm:
- Dell to Acquire Perot Systems for $3.9 Billion, Creating Comprehensive, Customer-Focused IT-Solutions Company
This move is a SIGNIFICANT milestone in the technology industry. In 1999, IBM was the sole enterprise technology company that aggressively invested in true system integration service capabilities. Today, the ranks are growing larger. EMC first leased (from Accenture) and then purchased a technology consulting capability which continues to grow. I have previously documented the growing importance of service revenues to EMC:
In 2008, HP bought EDS. I have written several articles observing the positive impact of that acquisition for HP:
Now, today, Dell takes an aggressive plunge into services. I truly believe this move by Dell marks a definitive shift in the relationship between product providers and system integrators as well as a clear acknowledgement that advanced services have become a table stakes capability for all product companies.
All eyes will now turn to companies like Cisco, Oracle, and even Microsoft. Suddenly, the stakes associated with pursuing the correct services strategy have never been higher.