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Dell Buys SMB's Microsoft-Related IT Services Business

The PC maker also adds a $12 million stock investment in Allin, which includes installing interactive TV systems in cruise ships and resorts, educational institutions, and health care facilities.
Dell on Friday said it has bought Allin's Microsoft-related services and consulting business, the latest move in Dell's continuing expansion of its technology services unit.

The computer maker purchased $12 million worth of Allin stock to acquire the business, which is expected to boost Dell's expertise in computer systems running Microsoft software, particularly its core infrastructure and business management applications.

Dell will take over Allin's operations in Pittsburgh and Philadelphia, as well as San Jose and Walnut Creek, Calif. About 100 Allin employees will transfer to Dell.

In selling the unit, Allin chief executive and chairman Rich Talarico said the company would focus its remaining business on the vertical markets it serves. Allin's other businesses include deployment of interactive TV systems in cruise ships and resorts, educational institutions, and health care facilities.

The Allin unit is the latest in a string of acquisitions by Dell to beef up its IT services and consulting business. The computer maker has been focusing on those areas to meet companies' preference for technology providers than can supply hardware, software, and services expertise.

Dell, which has seen PC sales slow in the economic downturn, announced last month a massive reorganization that established three separate global units for selling to businesses and government agencies.

Announced about a month after Dell reported a drop in revenue and profits as a result of slowing sales for servers and PCs, the reorganization moved Dell away from its regional sales approach. Dell earlier launched a global strategy in its consumer business.