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Dell & EMC May Do NAS

After recording a 46 percent revenue increase from the SAN systems it sells in partnership with EMC Corp. (NYSE: EMC)
last quarter, Dell Inc. (Nasdaq: DELL) is looking to expand the relationship into NAS.

Analysts say Dell will co-brand EMCs NS500G and NS700G NAS gateways, and the two might eventually consolidate their low-end NAS systems based on Windows.

Dell sells EMC Clariion SAN systems as part of a 2001 deal, but the two companies have kept their NAS lines separate (see Dell and EMC Do a Deal).

Neither Dell nor EMC would confirm or deny a pending NAS deal, but sources say Dell could begin selling EMC NAS gateways by mid-year. Considering Dell’s storage sales through EMC grew at more than twice the rate of its overall 17 percent revenue increase last quarter, it would make sense to deepen the relationship.

“We expect Dell and EMC to further expand their storage partnership in 2005 with Dell reselling EMC NAS products,” analyst Les Santiago of Piper Jafray wrote in a research note today.

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