Dell ramps up services division

Following the news that Dell may be expanding its business model to include indirect selling, CEO Michael Dell has told the Financial Times that he is planning a number of acquisitions to expand the firm’s service offering.

He claimed that the company’s services business was growing faster than sales of computer equipment, bringing in $6 billion a year and representing a “huge opportunity”.

“That growth will come not just from organic growth but also partnerships and acquisitions,” he said. “We made a small acquisition in Scotland, which has worked out quite well, and I think you will see some more acquisitions to add capability to our services team.”

Other computing giants such as Hewlett-Packard and IBM have been ramping up their services businesses recently due to the fact they are often more profitable than hardware sales – something independents have known for some time.