Dell Computer Corp. Tuesday tapped MSN
Internet Services and AT&T Corp. to
provide Internet access to different segments of its consumer-based and
small business initiatives.
Dell aligned with Microsoft Corp.’s
MSN Internet network to offer co-branded Dellnet by MSN Internet services
to home-based users.
The AT&T strategic relationship is designed to provide
Internet access for Dell’s U.S. small business customers. Dubbed, DellEPro,
Dell and AT&T plan to work together to bring other small business offerings
to market later this fall.
Both deals are efforts by Dell to offset diminishing margins on its
computer hardware lineup. Each provides the means for Dell to stay
connected with customers at the point of purchase.
Dell customers would still be able to opt for America Online Inc. or
other Internet service providers, but AT&T and MSN are Dell’s preferred
partners for Internet access.
The Dell, MSN collaboration is designed to advance anywhere, anytime access
to the Internet for the consumer market segment. Dellnet by MSN is
scheduled to be a feature on Dell’s U.S. computers this fall.
Dell and Microsoft plan to offer consumers the ability to purchase a new
Dell computer and sign up for Dellnet by MSN services, all at the same time.
Frank Muehleman, Dell’s worldwide home and small business group senior vice
president, said when the new computer arrives consumers need only to plug
it in to connect to the Internet.
“We feel that by working with MSN, we can build and offer Dell consumers an
industry-leading Internet experience,” Muehleman said. “Dellnet by MSN will
also provide consumers one of the easiest ways to get to the Internet
within minutes of setting up their new computer.”
The two companies plan to investigate develop new devices and services that
extend the reach of the Internet computing experience in the home and
personal environment.
Brad Chase, Microsoft senior vice president of the consumer group, said the
software giant was very excited about working with Dell.
“Our alliance with Dell will make unique MSN-based content and services
easily available through one of the world’s premier direct suppliers of
Internet products and services for consumers,” Chase said. “Through this
alliance, Dell and MSN plan to jointly develop next generation Web-based
products and services.”
DellEPro will be available later this summer on Dell notebooks and desktop
personal computers. It will also available through employee purchase
programs of Dell’s corporate customers.
Dell is already working with AT&T to provide DellEPro services to more than
100,000 employees of American Airlines.
Kathleen Earley, AT&T data and Internet services president, said the two
companies intend to tap into the small business market segment by
developing private label IP services.
“Analyst forecasts show that small businesses will spend roughly $28
billion on Internet services this year,” Earley said. “AT&T recognizes this
and is committed to helping these companies transform themselves through
innovative services such as DellEPro.’
Dell’s e-business Web site already features new Internet-based business
services for procurement, marketing, accounting and financial management.
To make these online services available to small business customers, Dell
has teamed with a variety of application service providers including Works.com, Eletter.com, among others.
Dell’s Muehleman noted that Internet-based companies continue to view Dell
as a former small business that
successfully grew its operations on the Web
to $40 million a day in sales.
“With DellEWorks we’re providing small business customers with expertise
and Internet tools needed to start or run their businesses over the
Internet,” Muehleman said.
Dell’s e-business Web site was first launched in February when the company
began offering Web hosting services. Since then, more than 8,000 business
customers have signed up for DellEWorks services.
