Tony and all:
I think the key here is that Intel has apparently made the decision to get into the service business, based around the offering of network services to small and medium sized companies.
As an Intel stockholder, it seems to me that this is an interesting new venture for Intel, but one must question whether the company's management and culture can make the transition from being a supplier of product to one of being a supplier of services. With their investments in non-chip-production companies they very well may be.
As an EMC stockholder, it would seem to me that Intel is putting itself into the position of possibly becoming a very good EMC customer or, if it already is an EMC customer (which would not surprise me, but of which I have no information), expanding its current EMC purchases with opportunities in this new venture. At the very least, if Intel is successful in this venture, IMHO that it will eventually bring a number of its client companies into the realm of their being interested in expanding their own enterprise information capabilities; meaning ultimately expanding their own enterprise information storage capabilities; meaning more opportunity for EMC.
Until such time as Intel were to indicate a preference for some other mass storage system supplier other than EMC, IMHO that it would seem that the Intel announcement would, in net (no pun intended), appear to be an opportunity for EMC, rather than a threat to EMC. Knowing the aggressiveness of the EMC sales/marketing effort, I'd be surprised if they were not already moving to convert this opportunity into a future sales stream.
Just my opinion.
Steve |
