Johannesburg, 05 Mar 1999
IBM and Dell Computer Corporation today announced a strategic $16 billion technology pact, believed to be the largest agreement of its kind in the information technology industry.
As part of the contract, Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. In the future, the agreement is expected to include IBM`s copper, silicon-on-insulator, and other advanced technologies.
The arrangement, which spans seven years, also calls for broad patent cross-licensing between the two companies and collaboration on development of product technology.
Initially, Dell will have access to IBM`s high capacity disk drives, network adapter cards, flat panel displays, high performance static random access memory (SRAM) 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. "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."
"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 Dr. James T. 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."
IBM has identified services, software and the sale of its leadership technologies as key growth areas for the company. Last October IBM created a new organization, the IBM Technology Group, to pursue new growth opportunities and focus additional attention on the OEM marketplace.
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