Dell Kicks EMC Off Its Line Card, Turns To Its Own Storage Tech


 

By this past summer, the break-up was felt in a very significant way. When Dell in August reported its second quarter 2011 finances, it said its storage revenue fell 20 percent over last year to $502 million. That included a 62-percent drop in revenue from Dell's sales of EMC storage products. That drop exceeded a 15-percent increase in sales of storage products based on Dell's own intellectual property, including its EqualLogic and Compellent lines.

"Most of the remaining EMC storage business has transitioned over to Dell technologies," said Dell CFO Brian Gladden at the time.

Dell has also acquired such companies as Ocarina, which gives it a strong deduplication technology, and Exanet, a developer of scalable NAS technology. The company is in the process of integrating the two technologies across much of its storage line.

Dell has done well with its acquisitions. Since it acquired EqualLogic in 2008, EqualLogic's customer base has grown 700 percent, the company said. Meanwhile, sales of the Compellent line in the first half of 2011 exceeded those of all of 2010, Dell said.

While Dell declined to further discuss its decision to end its EMC relationship, Darren Thomas, vice president and general manager of Dell storage, said in a prepared statement that his company is committed to providing quality service and support to existing Dell/EMC customers, will focus its sales on storage products built with its own intellectual property.

"Dell is making serious investments in both acquisition and internal development to assemble a competitive storage portfolio that provides customers with superior technology, such as automated tiering, virtualization and content aware deduplication and compression. Our customers are seeing the benefits of Dell’s storage portfolio and the context within a broader data center strategy as compared to storage products built around costly and old architectures," Thomas said in his statement.

EMC, which on Tuesday reported strong third-quarter 2011 growth in storage revenue and earnings, declined to comment on the official end of its Dell reseller relationship.