This sound like a win-win deal for both companies. Each gets to do what it does best, and in Dell's case that remains sell, assemble and distribute. And that's just the kind of kick-start that IBM needs to get its top line rolling. If you read that article I told you about in the Harvard Business Review this deal should not be that surprising to anyone (although the exclusive nature is something of a departure). It is really just a continuation of the "other person's technology" theory that MSD follows. And here you can see synergy in pristine form. Each company should benefit substantially from the deal. IMO we are looking at a de facto merger.
Here are the salient features from the full article:
biz.yahoo.com
As part of the contract, Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM's copper, silicon-on-insulator, and other advanced technologies.
The arrangement, which spans seven years, also calls for broad patent cross-licensing between the two companies and collaboration on the development of future product technology.
Initially, Dell will have access to IBM's high capacity disk drives, network adapter cards, flat panel displays, high performance static random access memory (SRAM) and custom chips.
TTFN,
CTC
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