By Ben Phillpott, KUT News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-861666.mp3
Dallas, TX –
Round Rock-based computer manufacturer Dell Inc has agreed to purchase Plano-based IT company Perot Systems for just under 4-billion dollars. KUT's Ben Philpott reports the move gives the company the pieces it needed to compete against its U.S. counterparts.
The announcement was not surprising to industry analysts who had been waiting for the acquisition shoe to drop after rival Hewlett-Packard purchased Plano-based EDS - a global IT systems company. After that 2008 acquisition - Dell was the last large computer manufacturer left without a larger business systems component. Dell spokesman David Frink.
Frink: "In addition to our leadership in industry standard servers, storage and desktop and notebook computers in the United States and worldwide this gives us a much more robust enterprise IT solutions services capability."
John Doggett says diversification was a do-or-die proposition for Dell. Doggett is with the McCombs School of Business at the University of Texas at Austin.
Doggett: "Dell rose to prominence as the most efficient manufacturer and configure-er of PC's on the planet. That game is over. They now have one of the most expensive manufacturing facilities in the United States because they're the only American based PC company that still makes their own boxes. Everybody else has their boxes outsourced."
Beyond an overall boost to the company - Doggett thinks the move will also be very beneficial to Central Texas. That's because the kind of on-site business services Perot Corp brings to Dell can't be outsourced to other countries.
Doggett: "So I think this is going to slow the erosion of jobs from Dell Round Rock oversees."
Doggett thinks Dell's next step will be to jump into the alternative and green energy systems. Which again could be a good job creator for Central Texas. Dell hopes to complete the sale and merger by the end of the year.