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

To: Mohan Marette who wrote (107793)	3/6/1999 9:25:00 AM
From: TechMkt	Respond to of 176387

Interesting note about developing UNIX systems. That and the AS400 deals would skyrocket DELL revenues if they become the manufacturer for IBM systems Fez _____________________ INFORMATION WEEK March 08, 1999, Issue: 724 Section: Top Of The Week ------------------------------------- Dell, IBM Join Forces - Technology Pact Worth $16 Billion Mary Hayes Dell Computer and IBM joined forces last week in a technology pact worth $16 billion. The deal is meant to help Dell increase its enterprise business, while providing IBM with access to Dell's manufacturing and distribution expertise. The agreement covers cross-licensing and joint product development, and it lets Dell use technologies developed by IBM's massive research and development operation. Dell officials say their company is interested in high-end server technologies, including those in IBM's AS/400 and RS/6000 systems that IBM is working to make available for Microsoft's Windows platform, as well as IBM's Fibre Channel disk-storage technology. In exchange, Dell expects to buy $16 billion in IBM products over the next seven years for resale and use in Dell's own product lines. Dell says it may work with IBM to develop Unix servers based on an operating system that merges AIX and SCO UnixWare for Intel's forthcoming IA-64 architecture. Dell needs a strong partner to help foster its budding enterprise server and storage business. "This industry is running away from us faster than we can run to keep up with it," says Mike Lambert, senior VP of Dell's Enterprise Systems Group. IBM stands to benefit by getting access to Dell's build-to-order process and direct distribution model as IBM ramps up its own direct-sales and custom-build plans. Dell will also offer IBM products through Gigabuys.com, an online store launched last week.