Intel, Compaq alliance will aim to reduce network bottlenecks First products might be available this year; Computers


SANTA CLARA, Calif. -- Intel Corp. and Compaq Computer Corp. said yesterday they're forming an alliance to develop products aimed at reducing bottlenecks in computer networks.

The first products from the alliance could be available later this year.

The venture between Intel, the world's largest chipmaker, and Compaq, the world's largest maker of personal computers, is aimed at spurring PC sales by speeding the flow of information over networks, analysts said.

"This is an extension of Intel's desire to seed the market for high-speed networking," said Farrokh Billimoria, analyst at Hambrecht & Quist.

The companies will develop products based on so-called Fast Ethernet technology and the next-generation technology, Gigabit Ethernet. Fast Ethernet, the latest technology for sending information on networks, operates at 10 times the speed of conventional Ethernet, the most widely used networking system.

The first products will probably be network adapter cards, used inside PCs to link them to networks. The products will continue to be marketed under separate brand names, they said.

Pub Date: 9/19/97

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