Dell signs big desktop contract with Philips

Dell has won a large global contract from Dutch electronics giant Koninklijke Philips Electronics to provide hardware and managed desktop services.

Under the five-year contract, valued at around $700 million, Dell will manage desktop computers, printers, office networks and applications, as well as provide technical assistance for around 75,000 employees, a Dell spokesman said Thursday.

The goal is to standardize, integrate and optimize systems and processes across Philip’s desktop infrastructure in 60 countries, Dell said. For the project, the Round Rock, Texas, computer maker will collaborate with systems integrators Atos Origin SA and Getronics NV.

The deal with Philips continues Dell’s assault on the market for managed computer services, which consists of installing and maintaining networks of computers for a fixed monthly price.

Philips and Dell had close ties prior to the managed desktop services announcement. Early this year, the two companies launched a global technology alliance.

Under that deal, Philips supplies cathode-ray tube and flat-panel monitors, storage devices, connectivity solutions and other components to Dell for use in computer systems.

In turn, Dell is a preferred worldwide supplier to Philips for server and data-storage products, workstations and personal computers. The U.S. computer maker also agreed to market and sell a comprehensive range of Philips-brand computer peripherals and other related products.