Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (107049)	3/4/1999 12:27:00 PM
From: Jeter C. Hall	Read Replies (1) \| Respond to of 176387

Thursday March 4 12:11 PM ET IBM, Dell In $16 Billion Pact, Industry's Largest NEW YORK (Reuters) - Dell Computer Corp. (Nasdaq:DELL - news) said its deal to buy $16 billion worth of components from IBM in the industry's largest supply partnership could lead to further partnerships. ''Our expectation is that this is just really the beginning,'' Michael Lambert, head of Dell's corporate Computer Systems Group, said at a press conference in New York Thursday. ''We could expand on this,'' he said. ''It could be an even bigger partnership.'' International Business Machines Corp. (NYSE:IBM - news) and Dell officials stressed that their agreement was a nonexclusive supply relationship and did not cover any arrangement related to computer services or IBM's own personal computer business, as earlier reports had speculated. They also said Dell was not replacing existing suppliers, but would use supplies from IBM to produce equipment for expected future growth. The deal between IBM, the largest computer maker with Dell, the fastest-growing, illustrates the high-tech sector's widespread practice in which rivals both compete in broad areas and cooperate in selected businesses. ''No one company can do it alone,'' said James Vanderslice, a top IBM executive who oversees the company's technology component supply business. ''Our company talks about a lot of things with Dell and vice versa. This agreement has nothing to do with services,'' Vanderslice said. The seven-year agreement boosts IBM's component-supply business, which has been growing 44 percent a year since it formed in 1993, and generated $6.6 billion in revenues last year. Dell will purchase IBM data storage, computer chips, network equipment and computer monitors. The two companies will also cross-license technology patents for engineers from both computer makers to use in developing future products. Dell plans to quickly use IBM's high-capacity data storage disk drives, a spokesman said, adding that Dell was looking forward to incorporating IBM storage technology in future high-speed network storage and storage sub-system products. Dell, the leading direct supplier of personal computers, also plans to install in its computers IBM network adapter cards, which are used to hook PCs to corporate networks. This marks the first time Dell has used such IBM products. Dell currently relies on network adapters from 3Com Corp, Intel Corp (Nasdaq:INTC - news) and Cisco Systems Inc (Nasdaq:CSCO - news) . Dell shares were up almost $2.50 to $83.50 in late-morning Nasdaq trading. On the New York Stock Exchange, IBM shares were trading at $175, up $8.25 from yesterday's close