Dell, Reliable IT Field-Services Deal Falls Through

Reliable IT dispatches the nationwide services of New York-based OnForce, which has more than 12,000 IT service providers on call. News of talks between Reliable IT and Dell emerged in April. The plan would have involved a Reliable IT portal that provided resources from OnForce and ServicePower, a Louisville, Ky.-based field logistics automation company, to Dell customers, said Scott Shaul, Reliable IT's president and CEO.

"Unfortunately, we didn't land that book of business," Shaul said about the Dell deal.

Shaul declined to quantify the size or potential long-term value of the Dell opportunity. He said Dell's interest in a deal with an IT field-services company validates the importance of offering such services. "Our model is an eye-opener," Shaul added.

Dell and OnForce couldn't be reached for comment. Calls to Chris Smith, CEO of ServicePower Field Service Solutions, weren't returned.

Dell officials have said they need to add services to offset declining revenue from the computer hardware maker's low-cost, direct-sales model. In April, a source familiar with Dell's plans said the Round Rock, Texas, company is "very serious" about finding a way to add new revenue through services and isn't ruling out any options.

As of April, negotiations for a deal between Dell and Springfield, Va.-based Reliable IT had taken significant steps forward, and Dell was planning to run field tests of a new services solution with Reliable IT, Shaul said at the time.

In May, Reliable IT announced a program for similar on-site IT services offered via the Ingram Micro Service Network. Shaul said the IMSN effort had nothing to do with the collapse of the Dell deal.