BNSF Selects Dell's Services - Analyst Blog

Round Rock Texas-based PC maker Dell Inc. (DELL) recently announced that BNSF Railway (BNSF) will be using its computing, field and managed services. Financial details of this five-year contract were not disclosed.
 
BNSF Railway, a wholly owned subsidiary of Burlington Northern Santa Fe Corp., is an American freight railroad company headquartered in Fort Worth, Texas.
 
Under the terms of the contract, Dell Services, the Plano-based IT and Consulting Services arm of Dell, will extend its information technology support through advanced processes and tools toward BNSF’s overall computing network. With the help of these support services, BNSF will draw maximum benefits from its computing, help-desk services, field and printing operations.
 
Dell’s Automated Service Management will enhance process flow through the efficient handling of software and hardware inventories. The company’s Service Desk offering will aid BNSF to ensure service quality through continuous customer support. BNSF’s fleet of printers will be managed by Dell’s Managed Print Services, a single point solution, which reduces printing time and cost.
 
We remain encouraged with Dell’s continuous efforts to expand its Services business, which has been particularly successful since the acquisition of Perot Systems Inc. in November 2009 for a whopping $3.9 billion. In June 2010, Dell Services announced a strategic partnership with Liquidware Labs, a desktop virtualization software vendor, to simplify and accelerate customer migrations to virtualized desktops within customer environments both on-site and in the cloud.
 
Dell’s decent second quarter fiscal 2011 results can largely be credited to its Service business and we believe that Dell’s Service business will be able to generate steady streams of revenues, going forward.
 
We currently have a short-term Hold rating on Dell shares, which equates to a Zacks # 3 Rank.