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DELL, EMC EXTEND STORAGE-EQUIPMENT AGREEMENT

Dell Computer Corp and leading data-storage equipment firm EMC Corp said recently that they have extended their agreement for Dell to resell EMC gear by two years, citing market share gains. The original agreement, signed in October 2001, now runs through December 2008, the companies said, adding that more than 4,100 customers have purchased Dell/EMC storage systems under the tie-up.

Dell has been working to get a larger share of shrinking technology budgets at customers, selling not only personal computers but also server computers using Intel Corp processors, networking switches and it recently started selling computer printers.

EMC, which historically has sold storage systems to large corporations, has profited by gaining access to the public sector and small and medium business markets where Dell is strong and EMC had a smaller presence.

"We've both been taking significant market share with this agreement," said Joel Schwartz, general manager of EMC's Clariion storage systems unit.

Under the original agreement -- terms of which have not changed, the companies said -- Dell has sold less costly data storage gear. It was expanded last October when the two agree that Dell would make an entry-level data storage machine designed by EMC.