Philips and Dell walk away from £400m services deal

A $700m (£400m) IT services contract between electronics giant Philips and Dell has been cancelled 14 months into a five-year deal.

A $700m (£400m) IT services contract between electronics giant Philips and Dell has been cancelled 14 months into a five-year deal.

The five-year global contract to provide hardware and managed desktop services to around 75,000 Philips employees was signed in December 2004.

In a statement, Dell said the two companies had been working together on development activity linked to the GLOW (Global Workplace) programme for a year, during which they have “consistently reviewed how to best support Philips end user requirements and its relevance to Philips’ and Dell's business priorities.

“Both parties have now concluded that the programme in its current format does not sufficiently guarantee successful completion and therefore Philips and Dell mutually agreed to cease this development activity.”

The two companies have “significant mutually beneficial relationships” that would not be affected by the cancellation of the contract, the statement said.

The GLOW project aimed to standardise, integrate and optimise systems across Philip's desktop infrastructure in 60 countries.

The cancelled contract also involved collaboration with systems integrators Atos Origin and Getronics.

The news comes just days after Dell posted record revenues of $15.2bn in its fourth quarter results, marking a turnaround for the company after a weaker than expected third quarter performance.

Read more on IT legislation and regulation

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close