Dell Details Agreement that Fuels Mobil Corporation Desktop I/T Savings of 25 Percent
Three-Year Global Contract Establishes Dell as Standard
Round Rock, Texas, November 24, 1998
Dell Computer Corporation announced today that Mobil Corporation, the fourth largest publicly held oil company in the world, has agreed to a new three-year deal worth an estimated $75 million establishing Dell as Mobil's standard for desktops, notebooks and servers worldwide. Mobil estimates the relationship with Dell should enable the company to reduce its corporate desktop Information Technology (IT) costs by 25 percent over the course of the contract.
Like many global organizations, Mobil's computing goals include achieving Year 2000 compliance and reducing the company's total cost of ownership (TCO). Establishing Dell as a desktop IT standard will help Mobil accomplish both goals.
"Mobil is pleased to announce our partnership with Dell, which is part of our long-term plan to optimize our desktop TCO efforts," said G. (Jerry) L. Kohlenberger, CIO of Mobil Corporation.
Mobil initiated its TCO strategy through standardization, going from three computer system suppliers to one worldwide. Industry analysts at Gartner Group have long documented how standardization helps lower IT support and maintenance costs.
"Dell's customized strategy will enable Mobil to quickly achieve its goal of single sourcing for desktops, notebooks and NT servers," said Brian Wood, vice president and general manager of Dell Computer Corporation's Enterprise segment. "At the same time, leveraging the capabilities of Dell's direct business model will help save Mobil an estimated 25 percent on this segment of its IT needs."
To achieve the estimated 25 percent savings, Mobil will take advantage of the following Dell (Nasdaq:DELL) benefits:
A single point of contact for Mobil's global needsThe ability to buy direct from Dell, the world's leading direct computer systems company and eliminate the expense and longer delivery times of many indirect suppliersVirtual integration of Mobil and Dell IT management processes to increase efficiency and reduce costsEfficient, cost-effective migration to new quality technologyLower support and maintenance costs due to standardization and system reliabilityWeb-based ordering, order tracking and Employee Purchase Program
The Mobil relationship is the second global contract announced by Dell in as many months. In October, Sara Lee signed a worldwide agreement with Dell worth an estimated $60 million. The Mobil relationship is one of 250 Dell global accounts. Dell's global customers include Ford, Procter & Gamble, Dupont, Boeing, Nortel, Pillsbury, and Bayer.
Ranked No. 125 among the Fortune 500 companies and No. 363 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $16.8 billion for the past four quarters. Dell designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of software and peripherals. Information on Dell, its products, and a complete listing of services can be obtained through its toll-free number 1-800-388-8542 or by accessing the Dell World Wide Web site at www.dell.com.
