Storage wars

Resellers are feeling the pull. Dan Carson, vice-president of marketing and business development at Open Systems Solutions, a US-based storage solution provider, says his company is negotiating a minefield between EMC and StorageTek.

It gets discussed at every meeting, with one saying we should be exclusive to them or do more with them,' he says. 'There are some tempting offers that I can't discuss here.'

StorageTek and ADIC are duking it out over tape, says Carson. 'StorageTek and ADIC have tremendous animosity towards each other. They'll do anything to get business from the other,' he says. 'We go in and look at what's best for customers.' Dimension Data Australia is not keen to talk about specific vendors for precisely that reason, it seems.

Martin Aungle, a communications manager at DiData, says the integrator fears vendor repercussions if it speaks too frankly about who is winning in what areas. 'We need to be seen to be championing the vendors we represent. So what are we going to say?' Aungle says. Yet intense rivalry is being experienced between EMC and HDS, says one US reseller. 'Neither knows we sell the other,' the reseller says. 'If they did, they'd cut us. Well, they probably know. But they don't care so much as long as we close deals.'

It is the same with EMC and NetApp, the reseller says. 'We stay low. We really represent us, not the vendors. With a few exceptions, we don't wave any flags high. The vendors want us to lead their charge. But as a successful integrator, we can't do that. We have to be discreet.' The trick, the reseller says, is to make each vendor think you are working only with them. 'The only way to do it is to close a lot of deals for them. So with a large line card, we have to keep busy.

The key is, are you selling the vendor? If not, they think you are selling someone else.' Tom Raimondi, president of MTI, a US-based reseller that does about US$100 million with EMC annually and in which EMC has an equity stake, has a simple view of the storage wars.

'Whenever one company starts talking bad about another company, it's FUD [fear uncertainty doubt],' Raimondi says. 'The guy who screams louder has nothing to sell. It's a classic strategy. When you're not at the top of your game, scream the loudest.'

But back to the battle royale. Every vendor - and most resellers - is tipping major industry consolidation to come.

So in the meantime, they all want to turn up the heat. IBM is upping the ante to EMC with updated SAN File System virtualisation software that will now include support for tape systems, an important volley aimed at putting a hole in EMC's information life cycle management strategy. IBM also plans to upgrade its SAN Volume Controller twice more this year.

EMC claims IBM is overplaying its virtualisation hand and has shortcomings in heterogeneous storage environments. 'If I was in IBM's position and losing market share, I would go after the market leader, too,' says Koury. 'That is what they are doing. EMC fears no-one in this space.' EMC has introduced a new high-end NAS gateway in its Celerra line.

The company also plans to update its DMX enterprise-class arrays and unveil a mid-range version of its Centera compliance appliance. It also plans to add new integrated product suites this year and a single, unified console for all its storage software suites over the next 18 months.