Compaq and IBM seal $1bn storage deal

By Jon Bernstein, 26 August 2000 08:30

NEWS Two of the biggest names in computer hardware have agreed to combine forces in the data storage market. Compaq and IBM will resell each other's storage systems and - as part of a $1bn strategic alliance - have committed to develop interoperable products in the future. The deal between the number one and number three player will turn the heat up on EMC, the vendor sandwiched between them. The alliance struck late Thursday night, European time, will see Compaq reselling IBM's Shark system to large companies as well as some of IBM's Tivoli-badged storage management software. In return IBM will sell mid-range Unix and Windows systems from Compaq. Much of the integration work will centre on storage area networks (SANs), the companies said. IBM will support Compaq's VersaStor technology for storage SAN-wide 'virtualisation'. Figures from research-house IDC put Compaq on top of the overall storage market with 20.6 per cent, EMC second with 14.4 per cent and IBM third.

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