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Issue Date: November 2007

AnalystWatch: Dell buys in services

November 2007
Ian Brown, senior analyst at Ovum

Dell has signed an agreement to acquire Everdream, a privately held, US-based provider of software-as-a-service for the remote management of desktop and laptop PCs. No terms have been disclosed and the purchase will not be final until all closing conditions are met.

Analyst view
Dell's buying spree continues unabated as it tries to fill gaps in its product and services strategies. Earlier this month it announced it was buying iSCSI storage-array vendor EqualLogic; now it has gone for Everdream's remote management technology and services.
Everdream's Management Platform is delivered over the web as software-as-a-service. It provides an integrated suite of on-demand services for a wide range of desktop management operations. This enables Everdream, its partners and customers to manage PCs irrespective of their location and provides clients with a range of compliance, uptime, and IT support services.
This is a good fit for Dell as it moves to improve its desktop managed services offering. The SaaS model complements its direct sales model and should enable Dell and its partners to offer competitively priced managed services for desktops and laptops without the upfront fees of traditional managed services. It also complements Dell's previous acquisition of Silverback Technologies. Although there is some overlap, Silverback is more focused on the data centre.
No acquisition slots immediately into place, of course. Dell now has two managed services consoles to integrate, two rather different approaches to monitoring (Everdream uses agents, Silverback does not), and offices and development teams to integrate. It is all part of Dell's evolution from box shifter to solutions provider. It has lagged behind other hardware vendors, particularly in terms of managed services. Now it is playing catch-up and so far the choice of acquisitions looks good. The next test is how well it handles the integration.
Source: Computergram


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