'bout time.
It took a while for Dell to figure out the biggest opportunity for them lies not in competing against EMC, but in selling desktop PCs (edge) and entry-level servers (edge) with pre-configured mid-range SAN (core), NAS (edge) and 1 Gbps LANs (edge) for the SME (small to mid-sized enterprise) market via its direct model. Data General (and its NUMA technology) is a potential bonus for Dell assuming it can manage the potential overlap between the Unisys products it is currently reselling with DG's current mid-range server line. Interestingly, Dell was widely considered to be the most probable buyer of DG before EMC aquired it in late 1999.
In any case, EMC indicated that it will be announcing new Clariions and software products in the next 60 days so this new alliance will probably get off to a fast start especially since Sun (StarCat) and IBM (Regatta) are in the process of rolling out new Unix servers in an effort to jumpstart the moribund server market. HWP and CPQ are also in the process of totally confusing its existing customer base so there should be a rich harvest of low-hanging fruit there too. IDC currently expects the storage (~$44B in 2000) and server (~$60B in 2000) markets to each shrink by at least 10% this year as a result of the global slowdown. In the absence of growth and the reality of shrinking markets, the competition very quickly shifts to market share, not profitability.
Dell to Revive Sales Pact with EMC - WSJ
NEW YORK (Reuters) - Dell Computer Corp. plans to resell computer-storage hardware and software made by EMC Corp., renewing a sales and development relationship that was canceled abruptly two years ago, the Wall Street Journal reported in its online edition on Tuesday.
Dell and EMC are expected to announce the partnership as early as Wednesday, the article said. The two companies aren't expected to disclose financial terms, but people familiar with the matter say Dell will resell and cooperate on development of EMC's Clarion storage systems.
A spokesmen for Dell, of Austin, Texas, declined to comment, the newspaper said.
The pairing of the two fierce rivals comes as Dell has struggled to stitch together its own storage-technology acquisitions and investments, and EMC, of Hopkinton, Mass., has seen its market position undermined by new alliances, the paper said.
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