The Valley's view of the Dell-VA deal

The Department of Veterans Affairs yesterday signed on Dell as the exclusive provider of PCs for the agency, a three-year deal worth $248 million covering PCs and support for more than 200,000 people.

Here is how the San Jose Mercury News' business round-up covered the story:

Dell is turning to the U.S. government in its efforts to overtake Hewlett-Packard as the world's largest personal-computer maker. Try-harder No. 2 Dell will be the exclusive provider of desktop computers to the U.S. Veterans Affairs Department in a contract valued at more than $248 million.

Dell will lease at least 249,000 computers to the department over three years, the Round Rock, Texas-based company said in a statement. Dell will also install and manage the machines for the agency's more than 200,000 employees. The contract bolsters Dell's desktop business,
which accounted for 33 percent of sales in the first quarter ended May 4. Desktop-computer sales fell 6 percent from a year earlier as more customers bought notebook PCs. The deal also helps lift Dell's services business, one of its fastest-growing units.

Chief Executive Michael Dell is aiming to retake the lead in the PC market after losing the top position to Hewlett-Packard last year. Dell has bought three companies in the past month after sales growth fell to its slowest pace in five years.