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Will EMC Salvage BMC Unit?

EMC Corp. (NYSE: EMC) -- hoping to wake up its software business with a double shot of hot espresso -- is expected to emerge as the winning bidder for the storage management software assets of BMC Software Inc. (NYSE: BMC), sources tell Byte and Switch.

In February, BMC unexpectedly shut down its storage management software group and said it would phase out the Patrol Storage Manager (PSM) product. That left around 130 enterprise users of PSM high and dry -- not to mention several dozen BMC employees out of work (see BMC Folds Storage Unit and BMC Lops Heads).

"BMC has been actively looking for a suitor for its storage management properties, not from a revenue perspective but from a customer-support perspective," says a source familiar with the negotiations.

The source says the deal is "not a big-ticket thing for either party -- there are literally no dollars changing hands." Under the terms of the deal, EMC will acquire the rights to BMC's PSM software and existing customer service contracts, the source says. There would be some kind of reciprocal agreement whereby, for example, BMC would resell EMC ControlCenter (ECC) software.

EMC and BMC representatives declined to comment for this story.

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