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ADVA, Siemens Team Up

Storage networking customers on the right side of the Atlantic may soon be faced with another option.

In a bid to enter a market that it's so far largely ignored, Siemens AG (NYSE: SI; Frankfurt: SIE) today agreed to resell equipment made by ADVA AG Optical Networking (Frankfurt: ADV) in an effort to increase its presence in the metropolitan optical networking market -- in which Siemens acknowledges SANs to be a key application. It looks like both companies could wind up achieving more together than they could individually (see Siemens Employs ADVA DWDM).

The nonexclusive deal calls for ADVA to sell its DWDM systems to Siemens Information and Communications Network (ICN) unit, which in turn will outfit the systems with its own optical transponder and sell them to metro customers, primarily in Europe, Asia, and Latin America.

Terms of the agreement were undisclosed. It is the first metro DWDM reseller agreement that Siemens has signed. ADVA has limited reseller arrangements in place with Alcatel SA (NYSE: ALA; Paris: CGEP:PA), Cisco Systems Inc. (Nasdaq: CSCO), Inrange Technologies Corp. (Nasdaq: INRG), and StorageTek (NYSE: STK).

The move should help both ADVA and Siemens broaden their scope and get into market segments they've missed so far. ADVA, still a relatively small company, could widen its customer base. And Siemens hopes to make inroads in the metro DWDM space, a market it's had trouble penetrating.

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