Dell to buy $16 Billion worth of IBM technology

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Dell to buy $16 Billion worth of IBM technology

IBM and Dell Computer Corp. announced a strategic $16 billion technology pact, believed to be the largest agreement of its kind in the information technology industry.

Dell will purchase storage, microelectronics, networking, and display technology from IBM for integration into Dell computer systems. The 7-year deal also gives Dell access to IBM’s copper, silicon-on-insulator, and other advanced technologies.

The arrangement also calls for broad patent cross-licensing between the two companies, which IBM says will give it access to Dell’s coveted build-to-order PC distribution techniques.

More information on the pact is available from or