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Dell, EMC Talk Turkey: Page 3 of 4

Dell and EMC also say they will have an ILM announcement in the first quarter of 2004.

Dell's Thomas says Serial ATA and iSCSI will help Dell and EMC in the lower end of the market. So far, the bulk of their sales have been with midrange Clariion and high-end Symmetrix arrays.

"Expect much more on these two technologies from Dell and EMC," Thomas promises. "We believe iSCSI will have its place in the industry. Initially it will be in the lower end of the market, because that’s where it fits price-wise and feature-wise."

The same goes for Serial ATA. "We’re looking at bringing the feature set down all the way to very low end, replacing tapes," says Thomas.

In the low end, Dell and EMC will have to fight off Hewlett-Packard Co. (NYSE: HPQ), which Monday announced an entry-level SAN aimed at undercutting Dell/EMC and IBM on price. HP’s StorageWorks Modular Smart Array (MSA) 1000, bundled with a ProLiant DL3380 Packaged Cluster, has a list price of $19,999 -- substantially below a low-end SAN offering from Dell/EMC. HP is banking on price and the popularity of the ProLiant to drive sales (see HP Underprices IBM, EMC on Low End).