EMC, Cisco alliance takes on computing giants IBM, HP
Joint venture with VMware to offer complete systems
In a direct challenge to computer giants IBM Corp. and Hewlett-Packard Co., data storage firm EMC Corp. of Hopkinton has allied with Cisco Systems Inc., the world’s leading computer networking company.
In a joint venture, EMC, its majority-owned subsidiary VMware Inc., and Cisco will sell prefabricated business computer systems. The new products will be built with computer servers from Cisco, data storage hardware and software from EMC, and server management software from VMware. “Wherever you touch any one of the three of us, we will look like one company,’’ said Cisco chief executive John Chambers.
Cisco, long known for its equipment used in computer networks, this year started making servers, large computers that store and process information. IBM and HP are the industry leaders when it comes to selling computer servers to businesses. By joining forces, EMC and Cisco can expand into that market quickly, offering integrated systems built with technology from both.
“Basically we are removing risk,’’ said EMC chief executive Joe Tucci. “This is all about efficiency, control and choice.’’
The integrated systems, called VBlock Infrastructure Packages, will allow customers to buy all the equipment and software they need together, from one seller. Big businesses use data centers - large arrays of computers and storage gear - that are often cobbled together with products from various vendors, and are difficult to manage. EMC and Cisco will offer systems that would allow customers to install new software or manage company information from a single control center.
Tucci said VBlock would transform the company’s data center into a “private cloud,’’ similar to the cloud computing services found on the Internet, where users run software that is stored online instead of on their own desktops. In companies with a private cloud, computing and storage resources would be centrally managed and easily accessed by workers in various departments.
The alliance could be a major boost to Cisco’s effort to expand beyond the networking equipment business. Earlier this year, Cisco launched the Unified Computing System, a new line of server computers. This put Cisco in competition against industry titans IBM and HP, which sell integrated computers and storage products. EMC and VMware are dominant players in storage and server virtualization, technology that allows many computers to run together as efficiently as one machine, but can’t match IBM and HP in servers or Cisco in networking.
Mark Bowker, senior analyst at Enterprise Strategy Group in Milford, said the new coalition will let the three companies offer customers one-stop shopping - a fully-integrated package that they could not offer on their own. “They’ve taken server, networking, and storage and put them together into a single unit,’’ Bowker said.
EMC and Cisco also announced a joint venture called Acadia, which will build and manage VBlock data centers. Acadia workers would oversee the installation of VBlock systems and train employees to operate them. VMware and chip maker Intel Corp. are investors in the Acadia joint venture.
EMC shares rose 12 cents yesterday to close at $16.55 on the New York Stock Exchange. Cisco fell 9 cents to $22.91 on the Nasdaq exchange.
Hiawatha Bray cna be reached at hbray@globe.com. 
