Cisco, EMC, VMware join hands to take on IBM, HP

Technology heavyweights Cisco Systems and EMC Corp dampened speculation the two companies would merge as they announced on Tuesday a broad partnership to develop data centre technology, taking on rivals IBM and Hewlett-Packard. The two have spent three years developing technology and ironing out details of a deep partnership through which they will bundle Cisco’s networking equipment and server computers with EMC’s storage and virtualization technology.

Their goal is to become a top provider of data centre products as the industry switches to technology focused on providing socalled “cloud” computing services from central data centres that can be accessed over the internet and corporate networks.

As they announced that partnership, top executives from both companies suggested that persistent speculation Cisco plans to acquire EMC has been unfounded.EMC chief executive Joe Tucci said in an interview that the rumours may have been sparked as investors got wind of the close talks between the two companies that led to the partnership over the past few years.

Cisco CEO John Chambers said in the same interview, that “Our tendencies are to partner together. I think we do that remarkably well.” When specifically asked if he was interested in buying EMC, as investors have long speculated might be the case, Chambers said: “You buy big-tosmall. You partner big-to-big.”

The Wall Street Journal reported that the partnership will sell and provide maintenance and service support for a product called “V-Block,” combining EMC’s storage equipment, Cisco’s virtualized servers and networking gear and VMWare’s virtualization technology.

The partnership, the paper said, will have two components. It will be responsible for marketing and providing maintenance and support for V-Block. But the actual cloud infrastructure will be constructed by a coalition of the three companies.

The publication noted that technology giants had breached new markets, “turning once stalwart allies into competitors”.

The move by Cisco, EMC and VMWare, it said, comes amid a wave of consolidation among companies that provide hardware, software and services to corporate data centres.“Following the actions of IBM and HP to create one-stop IT shops, Dell announced in September it will purchase IT services firm Perot Systems. Software giant Oracle Corp, meanwhile, is awaiting European antitrust approval for its acquisition of Sun Microsystems,” The Journal said.

Agencies

Major management shake-up at Intel Inc

Intel is expected to reveal a sweeping management change today, said the New York Times attributing to people briefed on the company. This management shake-up will witness its core chip Business Head Patrick Gelsinger leave the company after 30 years.

As Gelsinger departs, Sean Maloney, Intel's Head of Sales and Marketing, would take on an even larger role at the company. Maloney will look after the major chip businesses in Intel including its PC, graphics and server chips.

Also, Maloney, Intel's Sales Chief, is considered to be one of the possible successor to Intel CEO Paul Otellini. Another report from the Wall Street Journal, said 48-year-old Gelsinger would run computer-storage giant EMC's storage-products operations and some smaller software units.

Agencies

$1.5 billion investments from EMC in India

EMC said it will invest an incremental $1.5 billion in India over the next five years. The plans include for a new campus in Begalaru which will be one of EMC's largest R&D centers outside the US.

This investment plan represents a nearly threefold increase to investments made by EMC in India over the previous five years.

"India offers tremendous opportunities in innovation and market potential," said David Goulden, EVP and CFO of EMC. "EMC's commitment of $1.5 billion over the next five years illustrates the important role India will play in the company's long-term strategic APJ and global growth plans. The India COE will be responsible in helping EMC deliver more innovative, industry-leading products and services in the hottest technology areas in IT that meet our customers' most pressing needs."

Agencies