In a rare outreach Lenovo has teamed up with EMC, which will get another entry into the vast Chinese market through its new partner.
The pair is going to form an SMB-focused storage joint venture.
They've also got a server technology development program to extend Lenovo's nascent capabilities in the x86 server segment. The servers will be brought to market by Lenovo and embedded into selected EMC storage systems over time. It could threaten HP.
Lenovo is supposed to provide EMC's networked storage solutions to its customers, initially in China and then in other global markets. Both companies are supposed do R&D in servers and storage.
Finally, EMC and Lenovo plan to bring "certain assets and resources" from EMC's Iomega business into a new joint venture that will provide Network Attached Storage (NAS) systems to SMBs and distributed enterprise sites, where EMC is seeing rising demand and use of infrastructure-demanding private clouds.
Lenovo wants to be "a leader in the new PC-plus era." EMC expects to significantly expand its presence in China.
The $30 billion-a-year Lenovo will put cash in the joint venture. EMC will contribute those Iomega assets and resources. Lenovo will have the majority interest - presumably that means 51% - and can probably expect better margins than it's used to from PCs. Lenovo currently ships more PCs than anybody else except HP.
It's expecting to see billions from the partnership and wants to grow its 15% share of the Chinese server market to a position of dominance, spring-boarding it into the global market.
Ostensibly Lenovo is replacing Dell, whose close partnership with EMC fell apart because of Dell's storage acquisitions. Of course Lenovo's SMB markets are sexier than Dell's, especially since Europe is such a downer.
Interesting news
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