IBM in supply pact with rival

IBM in supply pact with rival
Tom Foremski
IBM announced another major oem supplier deal, this time with EMC which makes large data storage systems, in an arrangement valued at $3bn.
The deal with EMC comes just weeks after a similar oem supplier deal with PC maker Dell Computer with a $16bn value over seven years. EMC is a major competitor to IBM in selling data storage systems to corporations, but the oem deal is part of a new business strategy at IBM that moves it away from selling hardware systems.
IBM has identified services, software and the sale of its proprietary technologies as key growth areas. Last October IBM created a new organisation, the IBM Technology Group, to pursue growth opportunities and focus attention on the OEM marketplace.

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