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EMC, Dell Deny Alliance Rumors: Page 2 of 3

The disparity between the two versions of the product raises several questions. Dell's having devoted resources to releasing a new version seems to hint at an interest in competing with EMC.

On the other hand, the 660F, introduced in February 2001, is clearly no match for EMC’s high-end Symmetrix systems. Could the computer company be considering reselling EMC’s high-end systems to fill its product gap in this sector?

”We are always looking at ways to improve our storage business,” said a spokesperson for Dell.

Still, there doesn't seem to have been much success. Dell was a major investor in StorageApps, which was acquired recently by Hewlett-Packard Co. (NYSE: HWP) -- see HP Acquires StorageApps. Dell's acquisition of ConvergeNet, a SAN software company it picked up two years ago, produced no products.

Another possible scenario is that EMC might opt to save money by pumping out its Clariion products, the lower end of its storage line, over Dell's Internet sales channels, rather than using EMC's highly trained direct sales force. Indeed, there may be no need for face-to-face direct sales at this level of the market.