03/04 11:09 IBM, Dell Unveil $16 Billion Pact
Mar 04, 1999 (Tech Web - CMP via COMTEX) -- IBM Corp. and Dell
Computer Corp. unveiled a $16 billion agreement this morning that calls
for Dell to buy storage, microelectronics, networking and display
technology from IBM for integration into Dell systems.
In the future, the agreement is expected to include IBM's copper,
silicon-on-insulator and other advanced technologies, the companies
said.
The agreement is being formally outlined at a news conference this
morning in New York. The seven-year arrangement also calls for broad
patent cross-licensing between the companies and collaboration on
development of product technology. IBM officials said the deal does not
involve services.
Initially, Round Rock, Texas-based Dell will have access to IBM's
high-capacity disk drives, network adapter cards, flat panel displays,
high-performance static random access memory and custom chips.
"The body of Dell-developed product technology, particularly in
servers, storage products and notebook PCs, is expanding rapidly," said
Mike Lambert, senior vice president, Dell Enterprise Systems Group, in
a statement. "By more extensively pairing IBM's world-class technology
with our own, in systems brought to market through our efficient direct
business model, we intend to enhance Dell's competitiveness in the
global computer systems industry."
Dell would be alligning itself with IBM's $30 billion global services
business and a $40 billion backlog of contracts, the biggest in the
industry.
IBM's role as a supplier of advanced technology has grown significantly
in recent years, and this agreement is a recognition of the value of
IBM's technology leadership in the marketplace," said James
Vanderslice, senior vice president and group executive, IBM Technology
Group. "It's also further evidence of our commitment to bringing
IBM-developed technology to market quickly through a variety of
channels and to a wide range of customers."
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