UPDATE 1-Dell to make Dell-EMC brand data storage systems
NEW YORK, Oct 28 (Reuters) - Dell Computer Corp. (DELL) will begin making early next year an entry-level data storage machine that is designed by No. 1 data storage maker EMC Corp. (EMC) , expanding a year-long partnership, the companies said on Monday.
EMC, which has traditionally sold to large corporations, signed a deal for Dell to resell less costly data storage machines to Dell's large customer base of small- and medium-sized business customers.
Dell, which currently sells EMC-made storage, will offer the network storage system to its customers under the Dell-EMC brand at a price less than $30,000. It will make the systems in existing facilities in Austin, Texas; Limerick, Ireland, and in Penang, Malaysia.
Dell has been pushing to get a larger share of the corporate technology budget, selling not only personal computers and powerful computer servers, but also items like networking switches. It also plans to start selling printers.
EMC will begin making its own version of the storage system, called the Clariion CX200, starting in December of this year. EMC said it will sell the EMC-made machines to its customers and partners like Unisys Corp. (UIS) and Arrow Electronics Inc. (ARW) .
EMC said it would make its own storage rather than selling the Dell-made product because that's what customers want. The costs will still be lower, it said. "With common suppliers, the volume is going to be much higher," said Joel Schwartz, senior vice president of EMC's systems division.
EMC will make the machines in its Apex, North Carolina, and Cork, Ireland, locations.
EMC said the system, in which storage is attached to the network rather than to each individual computer, allows customers to upgrade through swappable components.
Hewlett-Packard Co.'s (HPQ) director of entry and mid-level online storage, Tom Rallens, said he believes that HP has a lower-priced offer. He said its comparable entry-level StorageWorks MSA 1000 sells for $18,200.
Rallens said he isn't worried about Dell applying its low-cost manufacturing model to data storage, saying that it doesn't appear to have resulted in sharp price competition so far. "They've claimed all that, but they certainly haven't delivered," Rallens said. |
