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To: GuinnessGuy who wrote (23494)	7/26/1999 7:15:00 PM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

IBM Unveils Storage Device in Challenge to Rival EMC Armonk, New York, July 26 (Bloomberg) -- International Business Machines Corp., the world's largest computer maker, unveiled a storage system for computer networks, taking aim at EMC Corp., the No. 1 maker of storage devices for big companies. The IBM storage system, called Shark, can contain more than 11 terabytes of information -- more than the printed collection of the U.S. Library of Congress. The product can be hooked up to a range of computers, from mainframes to servers based on Intel Corp. processors. Ten years ago, IBM dominated the storage systems business. EMC unseated IBM by the mid-1990s with an aggressive sales force targeting the mainframe market. Now, IBM is striking back as companies look to store more information on expanding networks. ''It's the latest challenge to EMC,'' said Bill Milton, an analyst at Brown Brothers Harriman, who rates IBM ''buy.'' ''IBM has high expectations for this.'' The storage system is part of a strategy that Armonk, New York-based IBM introduced last month to develop storage devices, software and services to construct networks of storage. Expanding Market So-called storage area networks, or SANs, are expected to be increasingly important as companies spread out their computer systems over the Internet. Hewlett-Packard Co., Sun Microsystems Inc. and Data General Corp. also are vying for pieces of the market, which IBM estimates will increase to $11 billion by 2002. ''Our customers need products like this to solve problems with the data explosion,'' said Ron Kilpatrick, general manager of IBM's Storage Systems Division. IBM will start shipping the system in September. EMC, based in Hopkinton, Massachusetts, has told analysts it doesn't consider the new IBM product to be a major threat because it won't include fibre channel, which retrieves information faster than other current technology. IBM's new storage device can connect to fibre channel products, and IBM will have a fibre channel version of the system by the first quarter of next year, Kilpatrick said. Even if a customer buys an EMC system, IBM benefits. In March, IBM won a $3 billion contract to supply disk drives and custom computer drives to EMC. IBM also is offering financing services and setting up testing centers in the U.S. and Europe for the storage products. IBM fell 1 13/16 to 123, and EMC fell 15/16 to 60 13/16. Jul/26/1999 16:37 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1999 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.