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Stratus, NEC ink 10-year joint product development

Posted: 30 Nov 2005 ?? ?Print Version ?Bookmark and Share

Keywords:Stratus Technologies? NEC? product development alliance?

Stratus Technologies and NEC Corp. announced that they have signed two 10-year agreements establishing a joint product development alliance and a long-term hardware purchasing arrangement. NEC also has committed to increase its equity position in Stratus with a $9 million cash investment.

Under the agreement, the two companies will cross-license technologies, collaborate closely on the development of future fault-tolerant computer servers, and provide core fault-tolerant technology. Stratus will provide high-availability software that enables continuous server operation, while NEC will primarily be responsibility for hardware design and for manufacturing a common hardware platform, which Stratus will purchase from NEC.

By sharing R&D expenses with NEC, Stratus expects to reduce costs and headcount, while reallocating investment dollars to software development and enterprise consulting services. "Our agreements with NEC enable us to increase our focus on high-value, high-availability solutions services for the enterprise, increase investments in fault-tolerant software development, and continue providing industry-leading, fault-tolerant servers to customers and partners," said David J. Laurello, president and CEO of Stratus.

According to the press release, the partnership will yield servers designed to support business- and mission-critical operations, such as carrier and enterprise telephony services, funds transfer, securities trading, credit card processing, highly regulated manufacturing, E-911 computer-aided dispatch, security, and call centers. NEC and Stratus have collaborated on hardware and software engineering projects since 1999, and NEC currently sells Stratus-produced fault-tolerant servers in the United States and Japan under the NEC Express brand.

NEC increases investment in Stratus
NEC's investment of $9 million will raise its ownership interest in Stratus to approximately 3 percent. Principal investors in the company include Investcorp, MidOcean Partners and Intel Capital, as well as the management and employees of Stratus.

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