EMC and Lenovo form new partnership
Deal will concentrate on Lenovo x86 range and create new JV for Iomega business
EMC and Lenovo have announced a new strategic partnership, which will focus on developing Lenovo's x86 server range, give EMC reach into China, and shift EMC's Iomega business to the PC company.
The agreement will help develop Lenovo's industry standard servers, and networked storage solutions, and increase integration with EMC's storage systems. The two companies will establish a server technology development program to accelerate and extend Lenovo's capabilities in the x86 server segment, for products that will be brought to market by Lenovo, and embedded into selected EMC storage systems.
The two companies will also establish an OEM and reseller relationship, in which Lenovo will provide EMC's industry-leading networked storage solutions to its customers, initially in China and expanding into other global markets. EMC expects to gain significant expansion into China through the deal.
EMC and Lenovo also plan to create a joint venture focused on EMC's Iomega SMB Network Attached Storage (NAS) devices. EMC will contribute assets and resources into the JV, while Lenovo will contribute cash, taking a majority interest in the JV once it is finalised.
"Today's announcement with industry leader EMC is another solid step in our journey to build on our foundation in PCs and become a leader in the new PC-plus era," said Yuanqing Yang, Lenovo chairman and CEO. "This partnership will help us fully deliver on our PC-plus strategy by giving us strong back-end capabilities and business foundation in servers and storage, in addition to our already strong position in devices. EMC is the perfect partner to help us fully realize the PC-plus opportunity in the long term."
Joe Tucci, chairman and CEO of EMC, said, "The relationship with Lenovo represents a powerful opportunity for EMC to significantly expand our presence in China, a vibrant and very important market, and extend it to other parts of the world over time. Lenovo has clearly demonstrated its ability to apply its considerable resources and expertise not only to enter, but to lead major market segments. We're excited to partner with Lenovo as we focus our combined energies serving a broader range of customers with industry-leading storage and server solutions."