Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

EMC 'Paying Too Much' for Smarts: Page 3 of 5

And that's certainly an area Smarts has been developing strongly of late. The OSS firm's president, Shaula Alexander Yemini, says a greater focus on carriers' needs is reaping rewards, and means "Smarts isn't viewed so much as just an enterprise shop. We're hoping to announce our biggest carrier customer ever very soon," she says, adding that Smarts is already one of AT&T Corp.'s (NYSE: T) suppliers for its Concept of One project and has growing traction with Verizon Communications Inc. (NYSE: VZ). (See AT&T Needs New 'Underware,' Says CEO).

But Kelly believes the EMC acquisition spells good news for Smarts's main competitors in the carrier market, namely Micromuse, Aprisma Management Technologies Inc., and Hewlett-Packard Co. (NYSE: HPQ).

Conversely, the deal gives Smarts more muscle, increases its potential customer base, and solidifies its growing relationship with Cisco Systems Inc. (Nasdaq: CSCO), already a key partner of EMC (see EMC, Cisco Do the Deed).

Yemini says a wide-ranging OEM agreement was signed with Cisco in August that covers almost all of Smarts's products, though it's still too early for that agreement to be having any noticeable impact on revenues.

Yemini says this is a critical deal for Smarts, as Cisco has, indirectly, been more of a competitor in the past, as it has long been a major reseller of Micromuse's Netcool software.