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NEC, Stratus ink 10-year development deal

NEC, Stratus ink 10-year development deal

NEC and Stratus are extending their relationship with a 10-year fault-tolerant server joint-design deal, they said Friday.

Japan's NEC and Massachusetts-based high-availability server developer, Stratus Technologies, have struck 10-year joint-development and technology cross-licensing deal. NEC will also increase its stake in Stratus with a $US9 million investment.

The deal, which was signed last Friday, will see the two companies develop high-availability servers. NEC and Stratus have worked together on fault-tolerant server design and sales since 1999 and the new deal will increase their co-operation.

NEC is developing a new large scale integrated circuit (LSI) chip that would form part of the heart of future fault tolerant computer systems that would be jointly developed by the two companies, a spokesperson for NEC, Yasuhito Jochi, said.

The servers will be built by NEC at a factory west of Tokyo and sold by Stratus in the U.S. and by NEC in Japan.

The first machine jointly developed under the deal and equipped with the new LSI was expected in late 2006, they said.

NEC has owned a small stake in Stratus since 1999 and its additional $US9 million investment will increase its overall stake in the company to 5.4 per cent. Other shareholders in the company include venture capital firms Investcorp, Intel Capital and Mid Ocean Partners.


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