Compaq and IBM to co-operate on storage

Storage competitors Compaq and IBM have buried their differences to agree a $1bn deal that promises to make storage networks more flexible and easier to deploy and manage.

Compaq will sell IBM's Shark enterprise storage server and Tivoli systems management software, as well as providing support services for the IBM products. In return, IBM will sell Compaq's Storageworks Modular Array storage systems and software, which will include IBM hard disk drives. IBM will also support Compaq's VersaStor storage virtualisation technology.

By boosting both companies' portfolios, they will be better positioned to displace storage market leader EMC from its dominant position. Sun Microsystems is also keen to improve its position in this area.

Both Compaq and IBM expect the deal to accelerate customer acceptance of open storage networking technology. To further this, the companies have both pledged to enable interoperability between each other's storage hardware and software. Furthermore, the companies will share their knowledge with the industry to help create standards for technologies including storage area networks (Sans).

Anoop Ubhey, enterprise industry analyst at Frost & Sullivan, said the deal would answer the interoperability concerns of customers who are wary of being locked into a proprietary San.

"It seems, at least on paper, to be a good deal for end users in that it promotes open storage standards," said Ubhey, who added that there was a good commercial and technological fit between the two companies.

"Instead of just talking about it, IBM and Compaq are emphasising their commitment to open standards and interoperability," he added.

Donal Madden, storage business manager at Compaq, said it was laying aside its differences as a competitor to IBM in the interests of promoting interoperability. "The storage industry has been playing a poker game. A few opportunists have tried to define de facto standards but these haven't succeeded. We're trying to cut through this nonsense," he said.

"We're going to compete on capability and not on standards with IBM. Also, before this we had no mainframe offering, so the deal also fills out gaps in our portfolio," he added.

Linda Sanford, general manager at IBM's Storage Subsystems Division, said: "Delivering true interoperability across our storage products - and open standards for the storage industry - will benefit all customers through greater choice and flexibility, ease of use and increased speed to deployment."

In a clear reference to market leader EMC, Sanford added: "Vendors who continue to promote proprietary systems and standards will find themselves increasingly isolated."

Ecommerce, email and applications like customer relationship management are driving corporate demand for storage, as enterprises collect an ever-increasing volume of data on customers and sales. According to IDC, the value of the storage systems market will grow to $53bn by 2003.

See also:

IBM claims disk drive lead over Seagate

IBM's storage division claims that its new hard disk drive outperforms Seagate's, which is currently the fastest in the industry, but analysts believe this achievement may be short-lived.  02 Feb 2001

BSG and Compaq team up for San offering

Service provider Business Systems Group and vendor Compaq have joined forces to provide a total managed solution for storage area networks.  17 Jan 2001

IBM unveils universal storage system

IBM has unveiled plans for Storage Tank, a product aimed at providing universal access to data and data sharing across diverse types of hardware, platforms and operating systems.  06 Dec 2000

Confusion reigns over storage standards

Storage vendors are trying to create a common set of standards to enable products based on different architectures to interoperate.  25 Sep 2000

Compaq tightens channel strategy

Compaq said it plans to fulfil more orders directly and create a centre for its European operations in Zurich as part of a strategy aimed at improving its performance in the region.  30 Aug 2000

Compaq finally moves into NAS market

Compaq has announced it will attack the network attached storage market with the launch of its TaskSmart series of NAS boxes in an attempt to plug a gap in its storage portfolio.  09 Aug 2000

IBM moves to reposition server business

IBM has today confirmed that it is considering repositioning its entire server line in a wide ranging initiative that analysts said would decide which platforms and architectures the company will invest in.  04 Aug 2000

Sluggish Europe spoils Compaq's figures

Compaq's solid figures for its second quarter were tarnished by its performance in Europe, which has remained sluggish.  02 Aug 2000

Storage protocol gains heavyweight support

Major players in the storage industry are collaborating on a file access protocol for direct access to storage, which they claim promises massive performance improvements for ecommerce and database applications.  14 Jul 2000

Compaq, Seagate face disk drive lawsuit

Compaq and its storage media supplier, Seagate Technology, have been accused of infringing a disk drive patent.  14 Jul 2000

EMC in Clariion call to Ingram Micro

Direct storage vendor EMC, which sold direct before buying Data General, has given distributor Ingram Micro the go-ahead to supply its Clariion mid-range storage servers to the channel.  05 Jul 2000

Sun pinpoints San management as key to future strategy

Sun Microsystems is pushing into the storage market, supported by the release of a range of hardware and software products designed for managing and connecting storage appliances on the network.  21 Jun 2000

Compaq and BT dig in for storage boom

Compaq and BT have begun trials of an extended Fibre Channel storage area network (San) in London.  15 Jun 2000

Cisco and Brocade collaborate on Sans

Networking giant Cisco has signed a deal with fibre channel company Brocade Communications to develop ways of allowing disparate storage area networks to communicate with each other.  14 Jun 2000

Compaq to resell Tivoli

Storage and network management vendor Tivoli has announced that Compaq has entered an original equipment manufacturer agreement to resell most of its products.  07 Jun 2000

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!