Dive Brief:
- Dell Technologies announced a multi-year partnership with General Electric (GE), becoming the primary source of GE’s IT infrastructure, Dell Technologies announced Thursday.
- GE plans to integrate hardware and services from Dell EMC, including servers, redundancy services and end-user computing for GE employees around the world.
- GE already sources products from Dell after previously working with VMWare, an asset of Dell for GE’s Predix IoT platform. GE Digital is also a Dell IoT Solutions Partner for the exploration of projects in industrial IoT.
Dive Insight:
The partnership with GE, a legacy company with about 295,000 employees, is seen as another milestone for Dell Technologies. The commitment follows the one-year anniversary of the historic $62 billion merger between Dell and EMC Corporation, which became Dell Technologies, emerging as one of the largest privately held companies in the world.
Dell also released its financial results finding a 16% year-over-year increase in Dell EMC's — Dell Technologies’ Infrastructure Solution Group — server and network revenue. In fact, Dell Technologies’ is helping it solidify its industry domination. Currently it provides technology for 98% of Fortune 500 companies.
While promising, long-term vendor partnerships can have a direct impact on a company's bottom line. If deals were to fall through, it would reflect on quarterly earning reports. Hewlett Packard Enterprise felt such an impact after having decreased sales from a "tier one" customer earlier this year, a customer the company heavily relied on.
