Feeds

Ericsson signs $1bn Compaq Alpha dev. deal

OK, it's for switches, but it's still a big thing for Alpha

  • alert
  • submit to reddit

Switches don't usually light The Register's candle, but we were intrigued when we learned the Compaq has won a major contract to supply Swedish comms company Ericsson with Alpha processors.

Ericsson plans to use the chips in its next-generation AXE wireless and wired phone switch. Both companies will co-operate on the development of the systems.

It marks the first time this desktop and server processor is being used in an embedded application, according to Terry Shannon of Shannon Knows Compaq.

The deal should bring between $500 million and $1 billion into Compaq's Alpha operation, each year over the next couple of years, reckons Shannon.

"The fact that switches have very long product lifecycles (say six or more years instead of two to three years as with a server) indicates Ericsson's confidence that Alpha will be around for a long time to come," he said. "Both the longevity factor and the incremental revenue are good news for Alpha." ®

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.