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To: ChrisJP who wrote (5781)7/16/2001 1:00:23 AM
From: 2MAR$  Respond to of 208838
 
SUNW, EDS strike partnership, see $3 bln over five yrs

SAN FRANCISCO, July 16 (Reuters) - Network computer maker
Sun Microsystems Inc. <SUNW.O> and consulting firm Electronic
Data Systems Corp. <EDS.N> said on Monday they had struck a
nonexclusive partnership that they expect to bring them an
additional combined $3 billion in revenues over five years.
The two companies have had a strategic alliance for a year
and a half and worked together longer, and executives in a
telephone interview declined to say what sort of increase the
closer relationship would bring and how the revenue would be
broken down between firms.
Palo Alto, California-based Sun and Plano, Texas-based EDS
said the $3 billion over five years would be in addition to
sales generated from current cooperation.
They aim to build and even operate technology systems for
mid-sized and major customers. As part of the cooperative deal,
Sun will provide hardware and software and EDS consulting and
outsourcing.
The specialist companies are competing against firms like
International Business Machines Corp. <IBM.N> and
Hewlett-Packard Co. <HWP.N> that offer both consulting services
and computer hardware and software.
"We have common competitors in the marketplace," John
Wilkerson, EDS vice president of global alliances, said in an
interview ahead of the announcement.
Wilkerson said the firms had already proven they worked
well together, and he argued that their nonexclusive
arrangement will allow them to serve customers better than IBM
or H-P, which are more bound to relying on their own wares.
((-- Peter Henderson, San Francisco Bureau 415 677-2578
peter.henderson@reuters.com))
REUTERS
*** end of story ***