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EMC, Dell Deny Alliance Rumors

They shake off speculation that they're getting closer, saying a deal wouldn't make sense

EMC Corp. (NYSE: EMC) and Dell Computer Corp. (Nasdaq: DELL) fervently deny rumors reported in the Wall Street Journal this week that the two are about to announce a new alliance.

The Journal article is incorrect and has no basis in reality,” said a spokesperson for EMC.

Specifically, the article states that a sales and development relationship between the two firms was “abruptly cancelled” two years ago and that it is about to be renegotiated.

Despite denials by both firms, probing reveals an ambivalent relationship, to say the least. According to EMC, the deal with Dell was never cancelled. EMC says it inherited the OEM relationship with Dell when it acquired Data General back in 1999. That deal continues today: Dell rebadges Data General’s (now EMC’s) Clariion 5700 Fibre Channel RAID storage system as the PowerVault 650F.

Interestingly, EMC no longer sells this product, with company officials saying it is out of date. For its part, Dell has introduced a new version called the 660F that improves on the original model.

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