Data centers

06:00 PM
Connect Directly
RSS
E-Mail
50%
50%

EMC's New Look: Small N' Cheap

Cheaper arrays get EMC into a new market; analysts warn of cannibalized revenues risk

EMC Corp. (NYSE: EMC) today announced an upgraded line of its Symmetrix storage arrays. But it could represent a double-edged sword for the storage behemoth.

On the one hand, the products pack more capacity, network capabilities, and performance into smaller chassis (all of which is "pretty sweet," as Cartman would say).

Additionally, the products are a lot cheaper than EMC's existing offerings, giving it a way to play in the mid-tier bracket of the market, against Compaq Computer Corp. (NYSE: CPQ), Dell Computer Corp. (Nasdaq: DELL), MTI Technology (Nasdaq: MTIC) and others, where analysts say it could do some damage.

"Users believe that EMC has the highest-end stuff, but only those 'elite' users have been willing to pay for itthis box is an effort to get a whole new audience to hop into this class of product," says Steve Duplessie, senior analyst at Enterprise Storage Group Inc..

Duplessie reckons, however, that EMC could also damage itself in the process (the other edge of the sword), by cannibalizing its own revenues from its existing Clariion mid-tier product range. "EMC appears willing to do this in order to steal shares from the others," he says.

Previous
1 of 2
Next
Comment  | 
Print  | 
More Insights
Cartoon
Slideshows
Audio Interviews
Archived Audio Interviews
Jeremy Schulman, founder of Schprockits, a network automation startup operating in stealth mode, joins us to explore whether networking professionals all need to learn programming in order to remain employed.
White Papers
Register for Network Computing Newsletters
Current Issue
2014 Private Cloud Survey
2014 Private Cloud Survey
Respondents are on a roll: 53% brought their private clouds from concept to production in less than one year, and 60% ­extend their clouds across multiple datacenters. But expertise is scarce, with 51% saying acquiring skilled employees is a roadblock.
Video
Twitter Feed