IBM will sell Dell $16 billion of parts; seven-year accord boosts reputation of Big Blue, blurs lines in industry

Article Abstract:

Dell Computer Corp., one of the fastest growing computer firms, has a seven-year pact with IBM to buy $16 billion in parts. That ups the $350 million per year currently spent on IBM components to $2.3 billion annually. It gives Dell access to IBM's R&D and possibly a discount on current licensing fees. All this could make competition fiercer for companies like H-P and Compaq. The deal does not preclude Dell from buying parts from other suppliers. The IBM hardware unit isn't a big fan of the arrangement.

Comment:

Company signs history-making deal with competitor Dell

New orders received, Use of materials & supplies, Computer Storage Device Manufacturing, Computer storage devices, Rigid Disk Drives, Equipment and supplies, International Business Machines Corp., IBM, Contracts, Dell Inc., DELL, Hard disk drives

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BMC Software's latest deal rocks industry's big boats

Article Abstract:

Houston-based BMC Software recently announced that it will acquire Boole & Babbage Inc. and that will put BMC into a niche where it can compete with IBM's Tivoli Systems and Computer Associates. In fact, it will make BMC the third-largest supplier of computer management software. But Platinum Technology Inc. of Wheaton Ill., has filed a suit to try to block the deal saying the acquisition would breach a contract it had with Boole.

Prepackaged software, Strategy & planning, Planning, Computer software industry, Software industry, Cases, Acquisitions and mergers, Business management software, Information management software, BMC Software Inc., BMCS

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Compaq cuts executives' stock options after operating profit fell 71% in 1998

Article Abstract:

Compaq Computer Corp. rewarded its CEO, Eckhard Pfeiffer, with a 1998 salary and bonus of $4.48 million, down only slightly from 1997, despite the firm's 71% plunge in operating profit. It was the stock options that were halved. Other top executives found about the same thing happen to their salaries, bonuses and options.

Electronic computers, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Management development, Compaq Computer Corp., CPQ, Compensation and benefits

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