Microsoft and NEC plan tie up

Microsoft dominates the office software market

Microsoft and Japanese computer giant NEC are to form a strategic alliance to tap Japanese companies' demand for internet services and computer support.

"The alliance...will involve joint testing and evaluation of a range of platform products", said Microsoft chairman Bill Gates, speaking alongside NEC president, Koji Nishigaki.

The tie-up will employ around 300 people and focus on IT solutions and support for new clients as well as on joint development of new products.

Mr Gates is touring Asia ahead of the 25 October global launch of Microsoft's Windows XP product. The latest version of the software giant's operating system is designed to give better internet access.

No equity stakes

However, the tie-up with NEC is aimed at top of the range internet and service centre support for the corporate market using high-end servers.

"The demand for very reliable high-end servers is going to be expanding into one of the best markets in the computer industry," said Mr Gates. NEC was chosen as a partner because of its strength in mainframe computers and the UNIX computer language, he said.

The relationship will not involve the two firms taking equity stakes in each other, NEC said.

Increased links

Microsoft has product development deals with other Japanese electronics firms, including Hitachi and Fujitsu, rivals to NEC.

The centrepiece of Mr Gates' Asian tour will be the Shanghai summit of the the Asia Pacific Economic Co-operation (APEC) forum, which he is due to attend. American president George W Bush will also be present.