EMC is showing heavy interest in boosting its share of the data center market by moving from storage and related services to servers.
Over the past two years, EMC has announced a number of partnerships and products that slipped its toe into the door of the server market. On Tuesday, the company announced a partnership with Lenovo under which the two will build and sell servers, and, of course, storage, beginning with the Chinese market.
Lenovo and EMC have formed a server technology development program that will accelerate and extend Lenovo's capabilities in the x86 industry-standard server segment, according to EMC. "These servers will be brought to market by Lenovo and embedded into selected EMC storage systems over time," the company said.
Lenovo is on its way to becoming the world's top PC vendor, according to IDC. EMC has long been the world's largest external storage vendor.
EMC's partnership with Lenovo creates a development and reseller relationship: Lenovo will hawk EMC's networked storage products to its customers, first in China then in other global markets.
"For anybody who has not felt or sensed that EMC was expanding their focus and role beyond storage to embracing data and information management from servers out to the desktop..., this should get their attention, and, for some perhaps, instill fear of what these two companies are doing," said Greg Schulz, senior advisor at market research firm StorageIO Group.
Bryan Wang, a principal analyst with Forrester Research, wrote in a blog today that the EMC partnership provides a boost that will help Lenovo develop X86 server products targeting the global market.
Lenovo's existing server business is mostly based in China. With the new ThinkServer brand, it is looking to enter the global market, according to Wang. "In the past 12 months, EMC has accumulated experience from a previous partnership with Dell and recruited server talent from IBM," he wrote.
EMC may leverage the Lenovo relationship to create an EMC-branded appliance.
"The current arrangement only shows that EMC will integrate Lenovo server products to complement its storage product portfolio. But considering that major competitors IBM, Oracle and HP are all announcing appliance products in the market, EMC may use the [joint venture with Lenovo] to follow suit," Wang wrote.
Roger Cox, a vice president of research at Gartner who covers data center convergence, said the new Lenovo relationship doesnt mean EMC is looking to enter the saturated server market, where margins are thin. But he agreed with Wang that EMC will likely use Lenovos server technology in appliances, like the Greenplum big data analytics appliance it currently sells.
They can take the Lenovo platform and stick that in theirs, versus buying one from Super Micro, he said.
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