China computer maker Lenovo has forged a partnership with US storage company EMC Corporation that will see EMC gaining more access into China market. On the part of Lenovo, the company said it will be an opportunity for them to strengthen their position in the business sector.
The partnership will involve joint technology development and channel partnerships. The two companies have also agreed to form a joint venture that will serve the storage needs of small- and medium-sized businesses (SMBs).
Lenovo and EMC have agreed to develop server technology that will accelerate and extend Lenovo's capabilities in the x86 server segment. EMC has agreed to embed this server technology into selected EMC storage systems over time.
The two companies have also agreed to expand their OEM and reseller partnership with Lenovo offering EMC's networked storage solutions to its customers, initially in China and eventually worldwide.
Joe Tucci, chairman and CEO, EMC, said this partnership will allow EMC to expand its presence in China, which the company considers to be "a vibrant and very important market".
"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," added Tucci.
The new joint venture to be set up by the two companies will focus on EMC's Iomega business, which EMC acquired in 2008. This venture will focus on network attached storage (NAS) for SMBs and distributed enterprise sites.
The joint venture arrangement provides that Lenovo will contribute cash, while EMC will contribute some assets and resources of Iomega. Lenovo will hold a majority interest of the joint venture, which is expected to be closed by the end of 2012.
"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, chairman and CEO, Lenovo. "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 realise the PC-plus opportunity in the long term."
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