Despite a lack of an apparent overlap between their technologies, Intel Corporation (Nasdaq: INTC) and Amdocs Ltd. (NYSE: DOX) have decided to cooperate, and have set up a joint performance lab, financed by the two companies, to test new technologies. The lab is located at Amdocs's premises in Ra'anana with managers and employees from both companies.
Intel, the world's largest maker of microprocessors, has been investing an increasing amount of resources in software in recent years. These investments are in Israel, too, where Intel provides Israeli companies with technology and marketing advice as well as equipment and distribution channels under the Office of Chief Scientist's Program for Program for the Encouragement of Multinational Companies' Project Centers.
Several months ago, Intel Developer Relations Division general manager Christos Georgiopoulos told "Globes" that company figures showed that Israel had 2,000 software companies. He said, "We'd be happy if they all joined the program."
Most of these software companies are small firms, but in the case of Amdocs, Intel is working with a multinational company with a $4.4 billion market cap and 17,000 employees worldwide. This cooperation is not part of the Chief Scientist's program.
So why, actually, are the two firms collaborating on the performance lab?
The objective of the Intel-Amdocs collaboration is to test Amdocs' products run by Intel platforms, and to verify that the products run optimally when put together. Amdocs develops and sells billing and business and operations support solutions, mainly for telecommunications companies. The joint performance lab will test processing, data storage, memory, virtualization, and other technologies. The results of the tests could affect the architecture of next-generation Amdocs' solutions and Intel processors.
One motive for the collaboration may be a new push by Intel into the mobile telephone industry. Amdocs, which provides added-value solutions to mobile operators, is a good partner for testing Intel's Atom processors in a cellular services environment.
Amdocs Product Business Group William Guinn said, "The Amdocs-Intel lab is a place that encourages innovative technology for supporting current and next-generation networks."
Georgiopoulos added, "The lab is an important means for joint research and projects. I consider Amdocs to be a technology leader and a true innovative company. I believe that we can greatly profit from collaboration by the two companies' R&D units."
Intel has a market cap of $89.6 billion. In 2008, it spent $5.7 billion - 15.2% of revenue - on R&D. Amdocs spent $225 million on R&D in its 2008 fiscal year, 7.1% of revenue.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2009
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