Dell extends Boeing deal, part of corporate surge |
June 27, 1999 12:36 PM EDT
NEW YORK (Reuters) - Dell Computer Corp., the world's No. 2 personal computer maker, said it plans Monday to announce that Boeing Co., one of Dell's five largest customers, will extend its existing purchasing contract to cover all of the aircraft maker's sites worldwide.
Terms of the new and existing deals were not disclosed.
But executives of the Round Rock, Texas computer maker said the expanded contract at Boeing marks the latest in a streak of big corporate sales wins for Dell that is part of a surge in both renewal and new customer contracts.
A Dell spokesman said that 63 percent of contracts Dell has bid on in the past two quarters it has clinched, up from win rates of 40 percent to 50 percent in prior years.
This reflects what Michael Dell, the company's founder and chairman said in interview last week was a surge in the company's market share, aided in recent quarters by the turmoil at Compaq Computer Corp., the No. 1 PC maker.
PC sales to corporate customers are the mainstay of Dell's $19 billion-a-year business. Roughly 70 percent of its revenues come from medium or large companies. The remainder is split between consumer and small business sales.
Under the new deal, Dell will become the aircraft maker's worldwide corporate standard for desktop and notebook personal computers, related PC peripherals like monitors and printers and selected services for the next three years.
Dell previously was the standard supplier of desktop and notebook computers to Boeing largely at its Puget Sound, Wash., Wichita, Kan., Philadelphia, and international locations.
The contract is now extended to cover all of Boeing's employees, including major operations in the Seattle-Puget Sound area; Southern California; Wichita, and St. Louis, Mo.
Dell will also provide Boeing with a suite of computer services associated with delivery, including asset tagging, custom software loading, warranty and technical support, and installation services at selected Boeing locations.
The three-year agreement also allows Boeing to evaluate and incorporate additional Dell products and services on an ongoing basis, Dell said.
Under terms of the expanded contract, Dell will provide Boeing with an open quantity of personal computers, as required by Boeing, over the next three years. Boeing currently has an installed base of about 175,000 personal computers.