Altera Corp. and Nortel Networks today announced a 5-year supply pact as well as a set of long-term agreements that address cooperation on future products and technology.
According to Ken Bradley, chief procurement officer of Nortel, the companies are taking their supplier-customer relationship to a new level.
"We've decided as a company that our value is working with our customers, so we need to have a small set of suppliers that we can count on, true partners that can make sure we have access to the kinds of technology that enable us to have the best networks. And we want to work closely with Altera to make that happen," Bradley said in an interview.
The deal involves Nortel and Altera engineers sharing access to future product plans. Altera will also manage some of Nortel's system design activity.
Additionally, the companies said they will redefine how they work together logistically and through the supply chain to have an effective, secure supply of products.
"We are taking this first step toward something far more than just a buy-sell relationship," said John Daane, president and chief executive of Altera.