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EMC's Storage Cloud Emerges

EMC has reportedly teamed up with SAP to boost its software-as-a-service (SaaS) strategy, secretly developing a hosting service called "EMC Cloud."

A Reuters report today cited SAP board member Doug Merritt as describing EMC's plans to host his firm's software on its storage, which would then be made available to users via the Internet.

EMC spokesman Todd Cadley refused to comment on the vendor's cloud computing plans, although at least one analyst told Byte and Switch that an EMC/SAP partnership is quite possible.

"It's very evident that this is a key piece of interest [for EMC]," says William Hurley, president of analyst firm Breakaway Information Group. "About two and a half years ago, EMC specifically set up an internal grid group that was looking at the feasibility of achieving exactly this type of offering."

SAP subsequently downplayed its Reuters comments, explaining that the firms are in "early stage talks" and that no agreement has been made, although the fact that discussions are happening at all underlines the momentum behind SaaS.

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