Dell, EMC partner in multibillion dollar pact

Dell Computer Corp. and market-leading enterprise storage vendor EMC Corp. said Monday they have formed a five-year, multibillion dollar alliance under which Dell will become the primary reseller of the newly co-branded EMC Clariion portfolio of enterprise storage systems.

The two companies said they will also collaborate on development of future open, networked storage systems and look for opportunities to use Dell’s procurement and manufacturing operations in the production of EMC Clariion products. Dell plans to begin offering EMC products in November.

EMC hopes the partnership will help it gain market share, particularly in the Windows NT and Windows 2000 storage markets, the company said in a statement.

EMC is “barely scratching the surface” of a midrange storage market it estimates was worth US$15 billion in 2000, EMC president and chief executive officer Joseph Tucci said in a statement. Dell’s direct sales model will increase EMC’s reach, particularly in the small- and mid-size business market, he said.

Meanwhile, Dell said the relationship will help it address a broader range of customer needs, including support for Unix operating systems. Dell said it will continue offering its PowerVault storage systems, while EMC plans to continue selling its Symmetrix portfolio. Dell and EMC will “work together” occasionally on sales of Symmetrix to Dell’s high-end enterprise customers, the companies said.

Reports surfaced in late September that Dell and EMC were on the verge of renewing a sales and development relationship that lapsed two years ago, when Dell decided to tackle the storage market on its own.

“It would be a logical step. Dell has been trying to sell its own storage line and hasn’t been very successful,” a Netherlands-based EMC spokesman said at the time.

Shares of EMC (EMC) climbed 4.08 per cent, to US$11.98, in Monday morning trading on the New York Stock Exchange. Shares of Dell (DELL) were up slightly in trading on the Nasdaq exchange, climbing 0.58 perc ent to US$24.19.

EMC, in Hopkinton, Mass., is at

Dell, in Round Rock, Texas, is at