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Intel's New Storage Strategy Includes EMC Inside

Posted by iNext - 2006-04-07

Intel plans to make a big push to offer custom systems-builders unbranded storage gear for their SMB customers. To do so, it has tapped EMC to provide the goods.

Under an OEM agreement announced Tuesday, Intel will offer the new EMC Insignia Clariion AX100 and AX100i storage arrays. EMC launched the new systems Monday. The OEM pact is particularly noteworthy because it brings Intel into a rapidly growing segment where it can help a vast network of resellers and systems builders provide their own branded storage systems just as they do servers, PCs and notebooks.

The agreement with EMC is worldwide, and Intel officials say they see a broad market, particularly in emerging markets such as China, India, and Latin America.

“It's the ideal solution for small to medium business, and offers enterprise capabilities tailored and configured for the small to medium business at a price range that's affordable,” says Hans Geyer, vice president and general manger of Intel's storage business.

Geyer says the storage hardware will be available via 160,000 resellers in 112 countries. With the Intel pact, EMC's new hardware will have the broadest distribution to date. In addition to EMC-branded systems going through its own channels, Dell also is reselling the new AX100/100i line. Mitch Breen, senior vice president of EMC's global channels, says the SMB market is growing at two-and-a-half times the overall storage market.

“There's plenty of room in the sandbox for everyone,” he says.

Intel has signed EMC on as its first key partner to develop and test next-generation silicon with storage capabilities. The two companies will jointly conduct validation and testing of new chipsets and CPUs.

“Clearly with EMC being the early definition and validation partner, there is some timing advantage involved for them,” Geyer says.

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