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IBM capitulates to EMC

Battle of storage giants ends with Big Blue the loser

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For the last five years, EMC has grown in the corporate storage arena while IBM has shown all the signs of flagging. Now Big Blue has finally capitulated to its upstart rival and has signed a five year deal worth an estimated $3 billion. EMC is to buy in IBM hard drives for its popular Symmetrix systems. It formerly used Seagate hard drives. Under the deal, EMC and IBM will also cross license each other's technology. Quarter on quarter, EMC has consistently shown high profitability which transformed it into a darling of Wall Street. ®

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