Try the new FT.com

April 5, 2006 5:10 pm

NEC and EMC extend alliance

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

NEC and EMC on Wednesday said they would expand a strategic alliance in a move aimed at helping the Japanese electronics group gain a stronger foothold in the offshore data storage market, and the US company to improve sales in Japan.

The groups plan to jointly develop, manufacture and distribute information storage technologies and cross licence technologies related to resource management and middleware.

The groups said the alliance was in response to a growing need among companies for efficient information management systems to deal with the increasing volume and diversity of data arising from the internet.

Internet traffic had grown a thousand-fold in Japan in the past 10 years while the capacity of storage systems had grown just one hundred-fold in the same period, they said.

At the same time, the growing need for companies to comply with stricter regulations concerning data retention and privacy, for example, was creating more opportunities in the information management sector.

NEC and EMC, the world’s biggest supplier of computer storage products, have had an alliance since 1997, through which NEC began reselling EMC’s software and hardware products in Japan.

The latest agreement comes as the Japanese group has been extending its alliances with various partners and focusing its resources on core businesses. The US group, meanwhile, has been keen to expand its presence in Japan.

The expanded alliance also highlights the growing pressures on high-technology companies amid fierce competition and rising costs.

“It is very difficult, with the pace of technological development, to go it alone,” said Joe Tucci, EMC chairman.

The US information infrastructure group, which had revenues of $9.7bn last year, has the number one market share in “every place in the world except Japan”, said Mr Tucci. “It’s mandatory” for EMC to be successful in Japan, where it has had a presence since 1994, he said.

The new agreement calls for both groups to significantly increase sales and marketing resources jointly dedicated to selling information management solutions in Japan.

One reason for the alliance with NEC was that “we can get more traction and much more market share if we work together”, Mr Tucci said.

Copyright The Financial Times Limited 2017. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.

  • Share
  • Print
  • Clip
  • Gift Article
  • Comments

EMAIL BRIEFING

Sign up to #techFT, the FT's daily briefing on tech, media and telecoms.

Sign up now

NEWS BY EMAIL

Sign up for email briefings to stay up to date on topics you are interested in

SHARE THIS QUOTE