Feeds

Update 2: Big Blue to team up with Dell

Technology partnership to last seven years, worth $16 billion

  • alert
  • submit to reddit

New hybrid storage solutions

Dell and IBM have signed a $16 billion, seven year technology cross-licencing, deal which will see the direct seller using Big Blue products to bolster its high-end weakspots. It is thought to be the largest deal of its kind in the IT industry. Details of the deal came through at 3pm GMT (10am EST) after news about the tie-up began to leak earlier today. The BBC Web site's news service was one of the first sites to carry the news. Dell will use IBM high-capacity disk drives, network cards, flat panel screens, and SRam. It is also thought that the deal will extend to microelectronics, such as IBM's copper chip initiative - a move which could put Dell at odds with long-time partner Intel. Brian McBride, vice president Dell UK & Ireland, said: "Our rivals will find it hard to compete, if we're spending $16 billion with IBM you can imagine we're getting keen prices. I think Compaq will be quite worried - we're the nimblest player in the market." He stressed that any development involving IBM copper chip technology would not jeopardise Dell's relationship with Intel. "This is a future technology, we're keeping our options open. I don't think you'll be seeing Dell PCs based on anything other than Intel." Dell has enjoyed runaway success in the PC and low-end PC server markets but has a lot of ground to make up before major corporate customers will consider using it at the high end. This tie-up with IBM will, Dell hopes, plug those gaps. James Vanderslice, senior vice president and group executive of the recently formed IBM Technology Group, described the deal as: "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." It has been a long time since IBM was a big noise in the PC market and the company is focussing on software, services and high-end product technology as its best hope for sustained future growth. Both were caught short by last year's Compaq/Digital merger. Dell lost one of its key service partners and IBM found itself with an unexpected rival in the high-end arena. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.