Compaq, API, and Samsung Set Long-Term Growth Strategy for Alpha
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 NonStop
(tm) 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
"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 NonStop
(tm) 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
- 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
- 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