Dell Computer says EMC relationship increases revenue

Dell Computer Corp., the largest personal-computer maker, said an agreement to sell EMC Corp. storage products is increasing sales.



Under the agreement, which began last October, Dell sells storage products to companies that don’t have Dell servers. EMC entered the arrangement to increase sales to government agencies and in small- and medium-business markets.



 “This has dramatically increased our market reach and we’re seeing significant top-line growth” in storage sales, said Frank Frankovsky, a Dell manager who oversees the company’s relationship with EMC.



Dell and EMC today are announcing three new software products: Naivsphere 6.0, which permits remote browsers, SnapView 1.3, which saves data in case of loss or a virus, and Mirroview 1.3, which backs up data.



Since the agreement was announced Oct. 22, Dell shares have risen 7.5 percent while EMC shares have dropped 8.4 percent. Dell shares rose 67 cents to $26.39 in regular U.S. trading today and EMC shares declined 28 cents to $11.16.



The agreement has worked out well for EMC, said spokesman Rick LaCroix.



“Anytime you have a company like Dell showing the technology, that’s a pretty good endorsement,” he said.



Improved Software



The improved software means customers don’t have to purchase as many Dell servers, said Frankovsky.



“This is the Dell model,” he said. “We want to continue delivering better value to the customers. If we don’t, someone else will.”



Dell reported $1.3 billion in sales for storage products in the fiscal year that ended in January.



Some analysts and investors have speculated that Dell might buy EMC to target customers that buy high-end storage products. Frankovsky said he was unaware of any discussions.



Bloomber News