Dell To Sell EMC Storage Systems

Dell Computer and data storage systems maker EMC Corp. Monday revealed a five year, multibillion dollar agreement under which the PC maker will market EMC's midrange data storage products. The agreement calls for both Dell and EMC to sell co-branded versions of EMC's Clariion enterprise storage products, which will become Dell's standard offering for storage area networks and network-attached storage installations.

The deal gives EMC access to Dell's massive sales force and customer base, and allows Dell to fill a gap in its storage products line. "This is an incredibly important area for us," says Russ Holt, VP of Dell's enterprise systems group. Dell will begin selling some of the storage products immediately, says Holt, but won't have them fully co-branded until mid-November. The rest of the product line will roll out by the end of the year.

Holt says the deal also includes an agreement to co-promote EMC's high-end Symmetrix storage systems, and opens the door to more collaboration in the future: The two companies are discussing the possibility of using Dell's procurement and manufacturing capabilities to produce the Clariion line. The companies declined to give financial details of the agreement.

Chris Foster, an analyst at Technology Business Research, believes it's a good deal for both companies, but particularly for EMC. "It's a good opportunity to get them a lot more exposure," he says. Foster says the deal won't mean much to consumers, aside from the chance of small price cuts. "Prices have dropped so much already," he says. "I'm not sure this will do much."