Compaq, API, and Samsung set Long-Term Growth Strategy for Alpha
Collaboration and Investment of $500 Million to Propel
Next-generation Alpha Solutions into Emerging Markets
Houston, Dec. 13, 1999 –
Compaq Computer Corporation (NYSE: CPQ), Alpha Processor, Inc., (API), and
Samsung Electronics Co., Ltd. today announced the expansion of their
relationship with the signing of a memorandum of understanding will result in a
$500 million combined investment to advance Alpha market opportunities and
technologies. Building upon recent announcements illustrating each
company’s commitment to Alpha, the companies are making unique and joint
technology contributions as well as development and marketing investments to
expand opportunities in growing and emerging markets for Alpha.
The investment commitment by Compaq,
API, and Samsung will extend Alpha’s leadership in enterprise environments
including a significant focus on NonStoptm eBusiness solutions. Through
the technology and product expertise of the three organizations, this agreement
helps expand Alpha into new growth markets such as fixed-function servers,
network appliances, and Internet network infrastructure.
“API, Compaq, and Samsung recognize
the business growth potential for Alpha and will leverage next-generation Alpha
performance solutions to make technology advances that ensure its leadership
position,” said Dr. Daeje Chin, executive vice president and chief technology
officer at Samsung Electronics and chairman and chief executive officer at API.
“Over the next decade this collaboration will continue to expand and thrive.
For example, we believe this agreement will lead to additional investments by
these three companies exceeding $1.5 billion during the next five years.”
“Compaq continues to build its
worldwide Internet infrastructure leadership and Alpha technology is a strategic
element in that effort,” said Michael Capellas, Compaq President and CEO.
“As the industry’s most powerful 64-bit processor, Alpha is one of the key
technologies for high-performance computing and NonStoptm eBusiness. With
API and Samsung, we are jointly reinforcing our long-term commitment to Alpha
and we are committed to expanding Alpha in target markets.”
Areas of focus aimed at expanding the
Alpha market include:
- Investment by Samsung in semiconductor
manufacturing process advancements such as copper interconnect, low-K dielectric
and silicon-on-insulator technology.
- Previously announced incremental
funding by Compaq in Tru64 UNIX/Alpha market development. This targets a
400% increase in ISV support funding, doubling of pre/post sales support
resources, and an aggressive, worldwide marketing campaign.
- Business development investment which
will enable Alpha to penetrate new and emerging markets such as fixed-function
servers, network appliances, and Internet network infrastructure. As owner
of the technology, Compaq continues demonstrating its commitment to broadening
the market for Alpha with the expansion of the Alpha architectural license to
include API.
- A framework for implementing
next-generation Alpha EV7 technologies by Samsung and API.
- Commitment to Linux with ISV
partnerships such as Cygnus which will result in a set of Alpha-based tools for
the Open Source community that will significantly increase the number of Alpha
Linux applications. Alpha is currently providing leading price/performance
in the entry point to the HPTC market with Linux-based Beowulf clusters.
- Collaboration between API and AMD on related technologies, such as Lightning Data Transport (LDT), which will expand reach of Alpha in the market.
Network Appliance, an example of a company building network file servers and Internet cache appliances, is basing its products on Alpha technologies. “Leveraging cutting-edge Alpha technology, NetApp can offer customers enterprise solutions that help them simplify complex data management. For high bandwidth, high performance workloads on our appliances, the power of Alpha provides a significant competitive advantage,” said Dan Warmenhoven, President and Chief Executive Officer at Network Appliance, Inc. “The commitment to Alpha by API, Compaq, and Samsung is encouraging and indicates that its future is solid.”
About Alpha Processor, Inc. (API)
API, located in Concord, Massachusetts, is dedicated to the development and marketing of Alpha – the world's fastest 64-Bit microprocessor – and related technologies. As an independent Alpha architecture licensee, Alpha Processor, Inc. engineers microprocessors, Alpha platforms and leading edge system logic. The company is committed to delivering the industry's best price/performance, open-standard platform solutions to its customers and system partners worldwide. For additional information on these products, the company or for the sales contact nearest you, please consult Alpha Processor Inc.'s Website at www.alpha-processor.com.
About Compaq
Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices. Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com, or by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.
About Samsung
Samsung Electronics Co., Ltd., with 1998 sales revenue of US$16.6 billion, is a world leader in the electronics industry. The Korea-based firm has operations in 46 countries and employs 59,000 people. The company consists of three main business divisions: Multimedia & Home Appliances, Semiconductors and Information & Communications. For more information, please visit the company’s Web site at http://www.samsungelectronics.com
Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include the failure of systems associated with order fulfillment; changes in product mix; inventory risks due to shifts in market demand; continued competitive factors and pricing pressures; and market responses to pricing actions and promotional programs. Further information on the factors that could affect Compaq’s financial results are included in its SEC filings, including the annual report on Form 10-K for the year ended December 31, 1998, and the latest quarterly report on Form 10-Q.