Two of the world's biggest high-tech giants, Intel and Compaq today announced a new licensing deal. Under the new deal, Compaq will license its Alpha chip technology to Intel as the personal computer giant looks to consolidate its operations to focus on software and computer services.
As well as gaining valuable intellectual property from Compaq for use in its chips, Intel will also gain a major customer for its Itanium processor. As part of the deal, Compaq will eventually transfer all of its server systems to use Itanium processors.
Terms of today's deal were not disclosed.
Compaq has agreed to move its entire line of 64-bit servers to Itanium microprocessors by 2004. The company is still going ahead with the release of its long-awaited next generation Alpha processor, EV7.
Compaq, which is trying to offset slow PC sales, said the new Intel deal would solidify the company's position in enterprise computing for the next decade and beyond.
Earlier this month, Michael Capellas, Compaq's Chief Executive, said the company was looking for a new strategy to transform its operations.
