Feeds

IBM+EMC = win-win or dog's dinner?

Analysts say yay, Reg says nay

  • alert
  • submit to reddit

The essential guide to IT transformation

A merger between IBM and EMC would be an occasion for rejoicing for customers, according to industry analysts Aberdeen Group - but not us.

Aberdeen reasons that IBM server customers turn to EMC for network storage because of EMC's "advanced storage management functionality and world-class service and support". That's not to say IBM customers are not happy with IBM Global Services, because Aberdeen reckons IBM's users value its help in integrating complex IT infrastructure components (such as EMC Symmetrix arrays with IBM servers, presumably).

From these points, Aberdeen concludes (in a research note entitled "An IBM/EMC Merger Would Be a Win-Win for IBM Customers") that a merger between the firms would give customers the best of both companies from a single source.

Aberdeen knows more about storage than we'd ever care to learn but this conclusion strikes a wrong chord with us for a couple of reasons.

Firstly from a competitive perspective, the merger of two of the main players in the storage market (the others being Compaq and HDS) would leave customers with fewer potential suppliers. It would seem to be a step back towards the bad old days when EMC cornered the storage market with its expensive (and proprietary) boxes.

The other point is that we don't think there's a good fit between IBM and EMC's product portfolio and strategic development plans, a point which recent interviews with senior IBM execs would appear to back up.

Dietmar Wendt, IBM's vice president of storage solutions in EMEA, told IT-Analysis that IBM wasn't interested in buying EMC, and even with EMC's lowered share price we don't see the logic of such a move, or believe it would benefit customers. ®

Related Stories

EMC slashes 2,400 jobs
EMC reveals price cuts, almost
EMC to chop 1,100 staff
Sayanora to SAN Squabbles
Compaq top of the SAN tree
Sun to resell Hitachi storage
Storage margins to shrink predicts Dell
Cisco enters storage market
MemoWatch Get touchy-feely with EMC and Lucent

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.