wj, Here is Steve D., talking, and I don't know if he was speculating or speaking of what will come to pass,......
Chicago, March 21 (Bloomberg) -- Steve Duplessie, analyst with the
Enterprise Storage Group, and John McArthur, storage group vice
president with IDC, discuss storage companies at the Storage
Management conference at the Hilton Chicago hotel.
On Dell Computer Corp.'s agreement to resell EMC Corp.'s Clariion
midrange storage systems, the speculation that Dell might manufacture
some of those systems and the future of the relationship between the
two companies.
``In six months not only will Dell make all the Clariions, but they
will sell all of it. And in 12 months, Dell buys EMC,'' Duplessie
said.
``Dell has a core competency in low-cost manufacturing. Dell will do
a better job in pushing down costs, and it has the potential to move
a lot of product,'' McArthur said.
On EMC's shift to an emphasis on software development versus
hardware.
``EMC sales guys know how to sell big boxes of hardware. They don't
know as much about how to sell big boxes of (software),'' Duplessie
said.
``Unlike before, none of (EMC's) competition has lost focus and that
has made the competition more difficult,'' McArthur said.
``Yes, today everyone has good stuff, except for Sun (Microsystems
Inc.). You can go to Wal-Mart now and get storage. The ground rules
have changed,'' Duplessie said.
``EMC set a high bar (for hardware) and everyone had to play catch
up. Well, they caught up. Now, EMC has changed the bar to software,''
Duplessie said.
``You can't rule out IBM, ever. A challenge for EMC is to maintain
the same high level (as prices decline and costs rise),'' McArthur
said.
On the Hewlett-Packard Co. acquisition of Compaq Computer Corp. and
its effect on the companies' storage business.
``What a massive undertaking. This is going to be brutal,'' Duplessie
said. ``You listen to (Dell chief executive) Michael Dell and (EMC
chairman) Michael Ruettgers and they love this deal.''
``The combination gives them bundling capability. They will bring
technical services and a heck of a lot of technology to customers,''
Dell to manufacture Clariions for EMC? If true will the components that go inside get put out for bid to the best price? Could this help shift the SAN....could BRCD get squeezed on the bottom and have a hard time at the top?
Or will BRCD go inside?
Never a dull moment.... any thoughts or help out there?
I can see why EMC might outsource production, but why Dell over say solectron? 'Cause they can sell it too? Why would EMC want to buy Dell, storage cannot become that big a pice of $$ can it? |
