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July 1999

HP ends EMC mass-storage resale pact

After it partnered with mass storage maker Hitachi this spring to offer HP-branded high-end storage devices, HP ended its long-time reseller arrangement with rival disk maker EMC as of June 30.

The end of the reseller deal marks a fall from grace for EMC in HP’s relationships with its customers. EMC mass storage solutions such as the Symmetrix line of high-capacity storage units received favorable treatment in the HP 3000 backup strategies, while alternatives like SSA storage stood on the sidelines. The EMC devices, whose price points started at a quarter-million dollars, will still be maintained and serviced by EMC in the installed HP base, including HP 3000 sites such as healthcare organizations.

Analysts said HP was keen to establish its own brand of storage devices in a market where demand for such disks is far ahead of supply. EMC didn’t want to let HP put its brand on devices. EMC will sell direct to HP customers, a path it followed closely after HP announced its Hitachi deal

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Ron Seybold, Editor In Chief

 


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