Dell to Acquire MSP Platform Provider SilverBackBy Jessica Davis | Posted 2007-07-18 Email Print
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The acquisition will position Dell as a managed services platform provider.Dell plans to acquire SilverBack Technologies, one of a handful of leading managed service platform companies offering IT monitoring and management services through resellers, the company announced today.
The move comes two months after the Round Rock, Texas-based PC maker, which built its business on direct sales of PCs to customers, announced that it would create a formal channel program. The channel program announcement followed declining market share for the company as well as rampant reports of poor customer service and support.
To counter its slide, Dell made significant moves early this year starting with the reinstatement of its founder Michael Dell as CEO. Since then the company has reshuffled executives, said direct sales were not a religion, and started selling its PCs in Wal-Mart.
Bill Stewart, vice president of marketing at N-able Technologies, one of Silverback's competitors, wondered if Dell purchased SilverBack to entice partners still searching for an MSP solution.
"What will be interesting is to see if Dell will use SilverBack as part of [its] own solution in competition with the MSP channel, like [its] recent Vostro announcement, or [if it] will they use SilverBack as way of wooing the channel." Stewart said.
SilverBack, based in Billerica, Mass., announced a distribution partnership with San Jose, Calif.-based Bell Micro last fall.
Dell has not released financial statements in more than a year due to both internal and external investigations of accounting irregularities within the company. In a deal struck last week, Dell narrowly avoided delisting from the NASDAQ stock exchange due to its failure to file its reports.