Rambus may well recover. Some influential analysts say they believe the competing technology is no threat to the Mountain View company's relationship with Intel in the long run. But Rambus' history helps illustrate both the benefits and pitfalls of a strategic alliance, one of the most fundamental decisions that any fledgling firm can make once it receives its venture capital funding. The right alliance can be crucial in a company's trajectory toward success, bringing an infusion of capital, traffic or market credibility. And yet the wrong alliance can tie a company to larger corporate aims that can limit its market and its creativity.
Many young firms have little choice but to find a partner.
It can be a way of choosing sides in a much bigger battle and obtaining a needed stamp of approval. Strategic relationships, of course, have been around for generations of Moore's Law. In the early 1980s, for example, IBM invested in a then-struggling Intel, eventually emerging with a handsome return when Intel recovered. But they have taken on a special urgency in the Internet age, when so many young and untested companies are vying for the attention of investors and the eyeballs of their customers. They're creating brand through excitement.