Dell and Philips cancel service deal

Billion-dollar deal shelved. Elizabeth Montalbano reports

Dell has confirmed that it has lost a services deal with Philips that was valued at up to US$700 million (NZ$1.05 billion).

While Dell has worked with Philips for the past year to provide hardware and managed desktop services to employees at Philips “it was mutually agreed upon by both companies” to cancel the project, says Bob Kaufman, a Dell spokesman.

The companies say they did not foresee a successful completion of the deal.

Philips continues to be a Dell customer and the company looks forward to working with the company in the future, Kaufman says.

Dell had been awarded a five-year contract with Philips in December 2004. The contract had called for Dell to manage desktop computers, printers, office networks and applications, and to provide technical assistance for 75,000 Philips employees.

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