IT'S a funny old world. IBM and Hitachi, which for 20 years have been without mercy bashing each other in the market for mainframe computers, are now partners.
Strange bed-fellows, indeed. IBM said it had agreed to supply Hitachi under licence with mainframe and microchip technology.
With the profit margins from the once vast mainframe sector of the market shrinking fast, the deal aims, quite simply, to reduce costs for both companies.
Under margin pressure, Hitachi has opted to now buy its mainframe core technologies, rather than develop the technology itself.
For its part, IBM wants to leverage the technology it owns through licensing and original equipment sales. The deal is likely to be the first of several.
The move marks an about-turn in IBM policy and is the most visible change seen at Big Blue since its chief executive, Lou Gerstner, was recruited about a year ago.
