House passes Biden's $1.9 trillion stimulus package Johnson & Johnson vaccine Pokemon Diamond and Pearl remakes PS5, Xbox Series X stock WandaVision episode 8 T-Mobile's $50 unlimited home internet

Dell taps Unisys in server, services deal

Continuing to push beyond its traditional PC markets, Dell signs a billion-dollar agreement focused on the sale of servers, desktop and notebook PCs, and consulting services.

Continuing to push beyond the bounds of its traditional PC markets, Dell Computer on Wednesday signed a billion-dollar agreement with Unisys focused on the sale of servers, desktop and notebook PCs, and consulting services.

Initially announced last month, the deal calls for the companies to re-brand and sell each other's Intel chip-based servers. It also includes selling Dell's desktop and notebook computers to Unisys customers, and providing consulting and services from Unisys to Dell enterprise customers, the companies said in a statement.

The companies say the agreement will be worth about $1 billion in revenue over the next three years.

As part of the agreement, computing giant Dell will resell 16- and 32-processor servers based on the Unisys CMP (cellular multiprocessing) architecture under the Dell brand. The Austin, Texas-based company will handle customer services and will team with Unisys to maintain the servers.

By reselling the CMP-based servers, Dell gives its customers a technology growth path to transaction-intensive e-business computing, Lawrence Weinbach, Unisys' CEO, said in a statement.

In addition, computer maker and IT services specialist Unisys is tapping Dell as its partner for midrange Intel-based servers. Unisys plans to acquire and sell Dell's two-, four- and eight-processor PowerEdge servers under its own brand name. The Blue Bell, Pa.-based company said it will provide support and services to customers buying these servers.

The deal also calls for Unisys to provide installation, warranty, support, network and systems-integration services for certain Dell products, with additional consulting services to be announced later this year.

The company also will provide Dell's OptiPlex desktop and Latitude notebook PC lines and single-processor PowerEdge servers to select Unisys services customers.

Dell has been criticized by analysts for being too focused on the PC, without a broad enough product line to embrace the computing needs of large or expanding companies. Wednesday's deal is meant to allay some of those concerns.

"This agreement expands our relationship from a services agreement to now include products as well," Neel Sarkar, director of Dell's business development for enterprise business, said. "Dell obviously views enterprise computing as an area of growth. (The deal) is strategic for us to address the needs of a lot of Dell customers in this space."

Last year, Unisys signed a server deal with Compaq Computer. The new agreement with Dell differs from that arrangement in the exclusivity of the PC portion, a Unisys executive said.

"We are not in the PC business any longer, but we will now have a way to source Dell (PC) products to selected customers under the Unisys umbrella," said Don Scoggin, vice president of business development and strategy at Unisys. No other PC makers have a similar deal with the company.

"Unisys customers benefit because we now provide midrange servers, under our brand name, that are complementary to our high-end server product lines," Scoggin said.

The deal between Dell and Unisys expands an existing services relationship that began in 1998.