Compaq is switching from its own Alpha chips to Intel's Itanium processors to power its enterprise servers.
By 2004, all Compaq servers will use the Intel chip, with Compaq transferring its own technology to Intel.
Itanium is Intel's latest generation of chip technology, and the first of its processors that is really capable of powering computer servers. The deal with Intel frees Compaq to phase out its Alpha server platform, which was developed a decade ago by Compaq acquisition Digital as the first 64-bit chip family.
Compaq said it is "transferring significant Alpha microprocessor and compiler technology, tools and resources to Intel". Financial terms have not been disclosed.
The deal is part of a major strategic review that will see Compaq cut costs by a further $200m and change focus to reduce dependency on stand alone hardware sales, as reported here.
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