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IBM, COMPAQ DATE STORAGE ALLIANCE.


IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  and Compaq Computer Corp., in an effort targeted at EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies.  Corp. the sector leader, have agreed to a mutual data storage alliance where each will sell the other's key data storage products. The alliance anticipates spending $1 billion over the next three years assuring integration of the systems.

Under the terms of the agreement IBM and Compaq will resell the other's equipment to joint customers but will still compete. Compaq will resell IBM's Shark product and its Tivoli storage-management software to customers that wish to share data with IBM mainframes Following are the mainframe architectures used in IBM mainframes since the original System/360 introduced in 1964.

Year Architecture Model numbers System/360 1964 System/360 2xxx (2020 to 2195) System/370
.

EMC derided the alliance as desperation by two companies that had declined to be part of a consortium created to set standards for the industry.

The data storage market is extremely fast growing and as reflected in recent articles. The alliance between IBM and Compaq will not be the last among major competitors who will be making a concerted effort to topple EMC as the leader in this sector.

Compatibility of storage products is a key issue, and the alliance must devote considerable resources to it or remain unable to effectively compete with EMC and its open storage system. EMC had revenues of $6.7 billion during 1999, and projects $12 billion by the end of 2001. The division of the data storage market at the moment according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis.  analyst Steven Milunovich puts EMC at 35%, IBM at 18%, and Compaq at about 10%.
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Title Annotation:Company Business and Marketing
Comment:IBM, COMPAQ DATE STORAGE ALLIANCE.(Company Business and Marketing)
Publication:EDP Weekly's IT Monitor
Geographic Code:1USA
Date:Jul 10, 2000
Words:237
Previous Article:APPLE BACK ON THE SHELF.(Company Business and Marketing)
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