Nortel and IBM To Establish Joint Development Center
Initial Focus on Business Transformation, Focused Research, and Collaborative Innovation
ARMONK, N.Y. & TORONTO -/20 May, 2005 - Wi-Fi Technology Forum/- Nortel [NYSE/TSX: NT] and IBM [NYSE: IBM] today announced the signing of an agreement designed to support customized products across a range of market segments. As the first step in this technology, research and services relationship, 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.
?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.?
At the Nortel-IBM Joint Development Center, personnel from both companies will:
? work together to enhance and extend current products, drawing from various divisions within Nortel and IBM, to drive new revenue growth while reducing R&D costs
? collaborate on focused research on a project-by-project basis, enabling a new level of product creation by tapping the deep skills of each firm to introduce solutions more rapidly
? work together on technology, initially, a new class of blade servers ? bringing together IBM?s Server Technology and Nortel?s carrier-grade communications expertise ? that would meet the specific and demanding data flow, reliability and security needs required by the network equipment marketplace embracing next generation network solutions.
Nortel expects to utilize IBM engineering and technical services, for a number of projects, all aimed at broadening Nortel end-to-end broadband, Voice over IP, multimedia services and applications and wireless broadband offerings.
?Nortel is a company with a strong history of innovation. Together, we are working to reduce complexity and cost of service delivery while enabling innovation for a new set of on-demand services. This is at the core of what we do,? said Bill Zeitler, Senior Vice President and Group Executive, IBM Systems and Technology Group.
Mr. Zeitler said this agreement reinforces IBM?s strength and ability to address the Business Performance Transformation Services market opportunity on a wide range of business services across many industries, areas that IBM can address based on its unique portfolio of technology design, system, software and consulting capabilities.
About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world?s most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world?s greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at http://www.nortel.com.
About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key IBM Business Partners, IBM offers a wide range of services, solutions and technologies that enable clients, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit http://www.ibm.com.
Use of the terms ?partner? and ?partnership? does not imply a legal partnership between Nortel and any other party.
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