Look Out, Veritas

EMC is preparing to build a storage software channel with a fleet of multivendor storage software products. The company has moved into the channel in a cautious, step-by-step manner and now has put together a plan to take down storage software high-flyer Veritas Software. EMC is building an extensive "open software" portfolio, but the products that pose the biggest competitive threat to Veritas and up-and-comer Computer Associates are in an area that EMC calls data life-cycle management. The software allows businesses of all sizes to save money or gain a competitive advantage by matching the storage service level to the importance of the data.

EMC CEO Joe Tucci, who has already made two storage software deals in the past year, said last week that he is on the hunt for additional products. The dynamic surrounding the EMC software bid is powerful. It presents an opportunity for storage solution providers to sell a product suite that is not tied to EMC's boxes. That's a huge value-add opportunity that boosts EMC's position in the channel. It also may alleviate some of the channel conflict that has come with Dell's pricing advantage on the Clariion line.

One big question: How fast EMC can move against nimble software makers such as Veritas and channel-savvy players such as CA? EMC still faces cultural obstacles as it moves to a more aggressive channel sales model. A big hole in EMC's new Velocity channel program that needs tweaking is a deal registration option that does not prevent Dell from undercutting EMC solution providers. EMC does promise to compensate a solution provider 12 percent for any deal taken direct by EMC. That, of course, should never happen. That type of direct-sales one-upmanship is one of the big reasons that a pro-channel compensation model, like the one supported by CA, is so appealing to solution providers.

EMC is putting together products to go head-to-head in the storage software marathon against Veritas and CA. But the question remains: Does EMC have the channel fortitude to win the race?

What do you think? Let me know at (781) 839-1221 or via e-mail at [email protected].