Wednesday March 24, 6:35 am Eastern Time
IBM, EMC form 5-year, $3 bln technology alliance
ARMONK, N.Y., March 24 (Reuters) - Computer giant IBM Corp. (NYSE:IBM - news) and
EMC Corp. (NYSE:EMC - news), which supplies corporate data storage equipment, said on
Wednesday they had formed a five-year strategic technology and business alliance valued at $3
billion.
''Today, one of IBM's fiercest rivals in the storage systems business now becomes one of our best
customers for advanced technology,'' Jim Vanderslice, senior vice president and group executive of
IBM Technology Group, said in a statement.
Under terms of the pact, EMC, based in Hopkinton, Massachusetts, will continue to buy advanced IBM disk drives to be incorporated
into its Symmetrix Enterprise Storage systems. In the future, the agreement is likely to include other IBM technologies, such as
microprocessors and advanced custom chips, the companies said.
The alliance also provides for broad patent cross-licensing for storage and other technologies, and the two companies agreed to
collaborate to develop business opportunities further.
This move is the second result of an IBM initiative to pursue growth opportunities and focus additional attention on the
original-equipment-manufacturer marketplace. Earlier this month, IBM formed a $16 billion technology pact with Dell Computer Corp.
(Nasdaq:DELL - news) in the largest supply deal the industry has seen.
EMC's stock closed on Tuesday down $1.94 at $113.81 on the New York Stock Exchange, and IBM closed down $1.44 at
$165.75.
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