Clariion has been helping Dell win storage contracts. EMC's sales are down 40% in the past year, but Dell's storage business has grown by 29%, says Russ Holt, executive VP of Dell's enterprise business. Half of that business involved the Dell/EMC SAN systems, and Holt says there are enough orders in the pipeline to post a 65% increase by year's end.
As for future storage plans, Holt says Dell also will build its own Windows-specific storage systems by year's end. And Dell and EMC are talking about Dell manufacturing some of the low-end Clariion systems. Already, EMC is getting volume discounts for Clariion components through Dell distribution channels. "Dell could take Clariion and take 5% or 6% out of the cost," says Steve Duplessie, an industry analyst at Enterprise Storage Group. "It wouldn't surprise me to see Dell manufacturing Clariion within the year."