Is Dell (DELL) breathing down IBM's (IBM) neck?

The New York Times [registration] suggests that Dell Inc. (NASDAQ: DELL) plans a big push into computer services as part of its makeover. Its big scoop? Dell hopes to go from $5 billion to $20 billion in services revenue by 2015.

This is actually more of a change than it might appear. That's because CEO Michael Dell recruited Stephen F. Schuckenbrock last December from Electronic Data Systems Inc. (NYSE: EDS) to lead its services business, which currently gets most of its revenue from technical support and maintenance on Dell machines.

But to reach the $20 billion target, Schuckenbrock will need to build Dell into more of a computer services powerhouse. If Dell hits its target, that $20 billion will still represent 40% of International Business Machine's (NYSE: IBM) $50 billion in estimated 2007 services revenue. And the gross margins on services business, at 30% for IBM, could add a significant amount to Dell which earns a relatively paltry 18% gross margin.

If Dell can pull off this big rise in services revenue, it could make me want to look at something I have not thought about in years -- buying Dell stock.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the stocks mentioned.