Philips and Dell end services deal

A £400m five-year IT services contract between electronics giant Philips and Dell has been cancelled after 14 months.

A £400m five-year IT services contract between electronics giant Philips and Dell has been cancelled after 14 months.

The Global Workplace (Glow) project provided hardware and managed desktop services to 75,000 Philips employees in 60 countries. It aimed to standardise, integrate and optimise systems across Philips' desktop infrastructure. It also involved collaboration with Atos Origin and Getronics.

A Dell spokesman said, "Philips and Dell have been working together on the development activity associated with the Glow programme for the last 12 months.

"During this time it has been 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, said Dell.

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