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EMC 'Paying Too Much' for Smarts: Page 4 of 5

Cisco is less gung-ho about the arrangement, however, saying its ties with Micromuse are as strong as ever. Philippe Roggeband, the equipment firm's OSS solutions manager, says Cisco now offers both products to its enterprise and carrier customers, but "there is no way that one is preferred over the other."

He says both have their strengths. The Smarts software is more "out of the box," and requires less customization, but this makes it less flexible than the Micromuse software, says the Cisco man.

And what of Smarts's senior management? Can EMC hang on to the team that has built up the OSS firm? Yemini says she's staying, and will be "reporting to the CTO, focusing on EMC's management software strategy."

Kelly believes EMC will be pulling out the stops to hang on to the top people. "I'm sure the golden handcuffs have been applied," he says, adding that stock option incentives vesting over a three-to-five year period would be a standard offer.

EMC says it won't comment on whether any such deals have been offered.