Thursday, May 19, 2005

Nortel and IBM to Develop New Class of Telecom Blade Servers

Nortel and IBM announced a strategic alliance to support customized products across a range of market segments. The companies will establish a Nortel-IBM Joint Development Center in Research Triangle Park, NC to collaborate on the design and development of new products and services.

Initially, the companies plan to develop a new class of blade servers combining IBM's Server Technology and Nortel's carrier-grade communications expertise. Nortel also expects to utilize IBM engineering and technical services for a number of projects, all aimed at broadening its broadband, VoIP, multimedia services and applications and wireless broadband offerings.

"This agreement with IBM is a critical component of our strategy to partner for growth," said Bill Owens, Vice Chairman and Chief Executive Officer, Nortel. "Working with IBM, as one of their key partners, is a bold step forward in our efforts to transform our business by reaching an entirely new level of R&D collaboration while reducing our R&D costs, introducing products at a faster pace and serving a broad range of customers more rapidly."

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