Here's EMC's separate press release. Generally, software tends to lag the hardware by about a year so this deal shows how EMC -- with a fast-growing software unit of its own as well as a $2.5 billion R&D budget over the next two years, 75-80% of which will be devoted to software -- gets in on the ground floor of the most important developments in technology like optical networking.
What's interesting is that this kind of deal also shows the kind of advantage that an independent McData will have.
The best component designs often flow from the best system designs. Having been an integral part of EMC's system over the last 5 years, an independent McData will be in a key position to merge with other companies and anticipate the way storage networks will evolve in the light of deals like this as well as other industry initiatives like Inifiniband and ethernet on silicon.
I'm speculating here, but it increasingly looks like the Data General very high-end server business -- which EMC is obligated to keep for 2 years (2002) -- will also benefit, system design-wise, from being at the core of the architecture of the next-generation optical networks and services. If the server consolidation market takes off as many project, I think the demand for the DG server business will be very high and could provide yet another way for EMC to enhance shareholders' value as well as provide for some very interesting strategic options.
EMC and Lucent Form CyberCarrier Alliance for Next-Generation Internet Services
EMC E-Infostructure to Support Integrated High-Bandwidth Optical Networking Capabilities for Service Providers
HOPKINTON, Mass.--(BUSINESS WIRE)--June 5, 2000-- EMC Corporation, the world leader in information storage, today announced an alliance with Lucent Technologies to integrate and qualify EMC's intelligent storage systems, networks and software as part of Lucent's new CyberCarrier initiative. CyberCarriers provide comprehensive high speed, high-bandwidth optical networking and data center capabilities to the service provider market. The two companies are showcasing their joint technology at the SuperComm trade show, June 6 - 9 in Atlanta, Ga. (booth 6815 Hall G).
EMC and Lucent will jointly qualify integrated products and services that will enable emerging CyberCarriers to quickly deploy a high-performance, highly available, scalable EMC information infrastructure - an E-Infostructure - that their customers can use to deliver next generation Internet services, application services and storage services. This relationship capitalizes on the high-bandwidth, low-latency capabilities of optical networks and the flexible, scalable and manageable attributes of EMC's world-class storage infrastructure, which when combined, facilitate the rapid transport of large amounts of data over long distances.
EMC's Symmetrix Enterprise Storage systems and software, EMC Celerra enterprise network file server and EMC Connectrix Enterprise Storage Network systems will be tested in Lucent's interoperability labs to develop solutions for CyberCarriers. In addition, Lucent and EMC will conduct joint interoperability testing to ensure compatibility of Lucent's OptiStar optical network technology with EMC Enterprise Storage Networks (ESNs) to enhance performance and management capabilities.
Pat Russo, Executive Vice President and CEO of Lucent's Service Provider Networks Business, said, "There's a new class of carrier emerging that understands the significance of using state-of-the-art optical technology with state-of-the-art storage technology to provide services that are beyond anything offered by anyone today. By working closely with EMC, and by building the information infrastructure for this next generation of carriers, we allow these CyberCarriers to get to market faster with innovative network solutions that offer the highest levels of information availability, performance, scalability and security."
Joseph Tucci, EMC's President and Chief Operating Officer, said, "An EMC E-Infostructure as the information foundation of a CyberCarrier opens a world of possibilities for service providers and their customers. Our work with Lucent will enable service providers to use our combined platform to get to market quickly and offer a range of new networked services, including E-commerce and supply chain management, with data center-levels of availability, scalability and performance. Customers will have the confidence of knowing that their mission-critical information lives on a world-class infrastructure - it lives on EMC."
EMC will also provide solutions and staff for joint interoperability and demonstration labs around the world to serve as demonstration and test environments for customers. The first lab is at Lucent's Bell Labs in Holmdel, N.J., with others planned for Japan and Europe. Both companies will also engage in joint marketing, sales and service activities.
About EMC
EMC Corporation (NYSE: EMC) is the world leader in information storage systems, software, networks and services, providing the information infrastructure for a connected world. Information about EMC's products and services can be found at emc.com.
EMC and Symmetrix are registered trademarks and EMC Enterprise Storage, Celerra, Connectrix and EMC Enterprise Storage Network are trademarks of EMC Corporation. Other trademarks may be the property of their respective owners.
This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) component quality and availability; (ii) delays in the development of new technology and the transition to new products; (iii) competitive factors, including but not limited to pricing pressures, in the computer storage and server markets; (iv) the relative and varying rates of product price and component cost declines; (v) economic trends in various geographic markets and fluctuating currency exchange rates; (vi) deterioration or termination of the agreements with certain of the Company's resellers or OEMs; (vii) the uneven pattern of quarterly sales; (viii) risks associated with strategic investments and acquisitions; (ix) the ability to attract and retain highly qualified employees; and (x) other one-time events and other important factors disclosed previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission.
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