Dell Buying Perot Systems For $3.9 Billion 92
alphadogg writes "Dell has agreed to buy Perot Systems for around $3.9 billion in cash, and intends to make the company its global services delivery division, the companies said Monday.The deal will allow Dell to expand its range of IT services, and potentially allow it to sell more hardware to existing Perot customers, it said. Dell's rival Hewlett-Packard expanded its own global services unit with the acquisition of EDS for $13.9 billion in May 2008. Over the last four quarters, Dell and Perot together had revenue of $16 billion from enterprise hardware and IT services, with $8 billion coming from enhanced services and support, Dell said. Perot's contribution to that is relatively small: In 2008, the company reported total revenue of $2.78 billion."
Hmm... (Score:3, Interesting)
If I only had .0256% of that deal!
It would have been more entertaining if Perot bought Dell, then maybe I'd like them. After all, he caused the world's largest jailbreak that appears in the Guinness Book.
Hmmm; this is REALLY Unhealthy (Score:5, Interesting)
Likewise, the Big 3 car companies were disasters because there was only three (that is why I have been arguing that we needed to break up GM and Chrysler).
Now, you have IBM, HP, Oracle and Dell all doing the same thing. That is they are exporting the jobs to Asia and there is really very little innovation (though in time, both China and India WILL be innovative) due to such few companies. What is needed is not to block this, but the West desperately needs to encourage small companies in all these industries. That means that if Obama, Brown, Sarkozy, Merkel, Harper, Rudd, etc want to bring back manufacturing to the west, they will need to start small companies, and buying from them.
From a former Perotista (Score:3, Interesting)
Please read up before commenting, (Score:2, Interesting)
Let's not forget he was the guy that attempted a Soldier of Fortune-type rescue of the Iranian hostages.
Delta Force "attempted" the rescue that was unsuccessful.
Ross's was the one that was successful.
For two employees.
Will your boss do that for you?
Re:I can just hear (Score:4, Interesting)
Good luck on that.
H Ross Perot Sr owned companies were already big on outsourcing before outsourcing was even popular - when EDS (also started by Perot - he was on the board of directors for part of the time I was there) bought a company I worked for the first thing they did was gut benefits and lay off 20% of the US workforce (and in the next two years layoffs were roughly 40%, even though the division I was in grew by 6x) and move those jobs to India - and that was in 2000. If anything Dell moves people from India to China where people are even cheaper to hire.
The best day of my life was leaving EDS - the constant fear of layoffs, the downward spiral of their stock, their stupid moves like selling profitable divisions and keeping unprofitable ones so their stock wouldn't go junk (what I call the Control Data spin, and yes, I worked for them, too, albeit briefly).
This deal is about health care (Score:4, Interesting)
Re:From a former Perotista (Score:4, Interesting)
Back when I worked at Dell, the department head of logistics or something emailed out copies of this article.
http://www.forbes.com/1999/04/21/feat2.html/ [forbes.com]
I think back to it now and then. Dell took all that was good in the company and sold it out to MBA's and exported the rest out of the country.
It was better when Dell didn't give a fuck who it employed as long as they did the damn job.