Feeds

Dell buys Windows consultancy chunks

Services play

Boost IT visibility and business value

Dell is shelling out $12m to acquire the Microsoft-related business of Allin Corporation, a small consultancy located in Pittsburgh, Pennsylvania.

The PC maker is picking up approximately 100 employees and the book of business from Allin's offices in Pittsburgh and Philadelphia, Pennsylvania and in San Jose and Walnut Creek, California. The Microsoft IT consulting and solutions business at Allin will be tucked into Dell's Global Infrastructure Consulting Services group. Allin's Microsoft unit implemented Microsoft ERP systems as well as SharePoint services (including hosting) on behalf of its clients and also did network and application architecture and design as well as security for them.

Allin has a total of 180 employees (including those moving over to Dell) and says that its remaining people will focus on vertical solutions pegged to specific industries and will be working with Dell for the basic platform stuff. Allin is publicly traded on the Over The Counter Bulletin Board market, and for the nine months ended in September 2008, the company had sales of $22m, up 18.3 per cent. However, in the third quarter, when sales rose by only 3.5 per cent to $5.9m, Allin booked a $725,000 loss, or 9 cents per share, compared to a profit of $838,000 in the prior year's third quarter.

Revenues were up 17 per cent in the second quarter, but costs rose faster. The company was banking on an uptick in server virtualization and unified communications on the Windows platform to help it ride out the economy. But the big swing to a loss in the third quarter was enough to compel Allin to sell its Microsoft practice to Dell, which you might think has many more competitors and lower margins than the vertical businesses that Allin will focus on going forward.

However, this may not be the case. One of the big verticals that Allin plays in is financial services, and the company said in November, when it reported its third quarter 2008 results, that services sales among its financial clients was weakening. The company also has a big concentration in the travel and leisure verticals - not necessarily where you would choose to be in a down economy. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.