SAN FRANCISCO -(Dow Jones)- Dell Inc. (DELL) said Thursday that it is combining its business units focused on serving the public sector and large businesses--its two largest segments by revenue--in order to streamline the company's operations.
The move led to a series of management changes at the technology company, including the pending departure of the former chief executive of Perot Systems, which Dell bought to bolster its services business for $3.9 billion in 2009.
Dell, based in Round Rock, Texas, has benefited from strong corporate demand lately, reporting in November that its fiscal third-quarter profit more than doubled. Revenue at Dell's public segment rose 20% to $4.44 billion, while its large enterprise segment jumped 27% to $4.33 billion. The company's overall revenue grew 19% to $15.39 billion.
Paul Bell, who used to run the company's public-sector business will head up the newly combined unit. Additionally, Steve Schuckenbrock, who used to run Dell's large enterprise business, will replace Peter Altabef as head of Dell Services.
Altabef, who will depart in March, was formerly the chief executive of Perot Systems.
To find new and robust streams of revenue--and to help combat a slowdown in its core computer business--Dell dramatically expanded its services business by acquiring Perot Systems, which was considered a top provider of healthcare information technology services.
Dell shares recently slid 1.8% to $14.13. The company's stock has gained about 12% over the past year.
(Matt Jarzemsky contributed to this report.)
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