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Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

February 24, 2010 at 10:28 AM

GSC: Box company Dell wants to do more “solutioning”

SAN FRANCISCO — Computer maker Dell wants to be more than a box company, and it spent its time at the Goldman Sachs technology conference pitching Dell Services as an IT solutions provider, like Hewlett-Packard and IBM.

Dell acquired Perot Systems last year to build up its business as a provider of IT services.

“Dell Service today is one of the 15 largest IT service organizations in the world,” said Peter Altadef, president of Dell Services. “It’s a market that’s pretty wide open.”

Altadef said Dell recently helped a client convert from mainframe to a Windows-based system. He said the system saved the client $6 million in annual licensing and operating costs a year.

“Eighty percent of a typical CIO budget is spent on maintaining their existing infrastructure. They only have 20 percent to spend on new projects,” he said. A CIO could take the savings and put more money in new projects intead.

Or the savings could go toward greater profit margins. Dell’s profit margins showed some erosion in the fourth quarter. Here is a story on Dell’s earnings report earlier this month.

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