NETWORK WORLD NEWSLETTER: MIKE KARP ON STORAGE IN THE ENTERPRISE
10/14/04
Today's focus:  The curious relationship between OEMs and 
vendors

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In this issue:

* The real name behind the branded box
* Links related to Storage in the Enterprise
* Featured reader resource
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Today's focus:  The curious relationship between OEMs and 
vendors

By Mike Karp

All computers - and all storage systems - are built from parts 
that come from numerous manufacturers. In almost all cases, the 
users don't know who the original manufacturers are, and in 
almost all cases, there is no reason why they should.

Perhaps curiously, a company that assembles other vendors' parts 
within its own offerings is called an original equipment 
manufacturer.  Decisions whether to build internally or go the 
OEM route are strictly business:  a company decides to resell 
another manufacturer's products under its own name because the 
manufacturer has some intellectual property, manufacturing 
capability or other competence that enables the company to get 
products out the door faster, cheaper or better.

For example, nobody builds all the components of the storage 
units they sell; they turn to other manufacturers for the disk 
drives, connectors and much of the silicon inside. 

In many cases, OEM-ing means taking a whole machine from a third 
party, rebranding it, and selling it as your own.  Sometimes the 
OEM adds value in software or additional hardware, or perhaps it 
simply resells the box as a way to fill out its product line.  
And sometimes companies compete against one another with 
machines that come from the same manufacturer. 

When it comes to storage, which companies sleep together is an 
interesting m�nage a beaucoup.  Here is some of what goes on, at 
least at the system level.

Sun and HP get their high-end systems from Hitachi. Dell gets 
its best systems from EMC (the Clariion line).  StorageTek, IBM 
and others get many of their storage devices from Engenio 
(formerly LSI Logic, formerly Symbios Logic, formerly NCR 
Microelectronics, etc.).  Sun gets its 3000 series from Dot 
Hill.  EMC has some of its systems built (and in some cases, 
designed) by third parties. The list is actually far more 
extensive than what I show here.

If you follow the market, you see some interesting spinoff 
resulting from this. 

For example, a number of vendors that sell directly to the 
public but also supply these larger companies find themselves in 
the curious position of competing in the marketplace against 
products they have built themselves. 

Another curiosity of the OEM world is that some companies 
produce products that are good enough that even the top-rank 
storage companies resell them. However, because their name 
doesn't go on the outside of the box, these companies also 
remain relative unknowns even though their products may be all 
over the market (Engenio and FalconStor are good examples of 
this, although Engenio's penchant for changing its name 
certainly also contributes to this). 

When you add to this the fact that many contracts between OEMs 
and their suppliers don't even permit the original vendor to 
claim publicly a relationship with the selling company, it is 
easy to understand what a challenge it can be for them to gain 
"brand equity"; they often remain very low-profile as far as the 
general public is concerned.

Interestingly, OEM relationships are typically not small 
companies going to larger companies to get some specific 
technology they couldn't do themselves, but just the opposite.  
Most often, the relationship is one of a larger manufacturer 
turning to some smaller (perhaps niche) player that has come up 
with key expertise. 

All of this is quite healthy because it gives large vendors 
additional ways of acquiring intellectual property without 
building it in-house, and it gives the smaller companies a 
better way to distribute their wares. 

Which is not to advocate sleeping around of course, but in this 
special case, it seems to have lots of positive effect.

RELATED EDITORIAL LINKS

Technology Insider: ILM
Network World, 10/11/04
http://www.nwfusion.com/techinsider/2004/1011techinsider.html

Disk storage wares on tap from StorageTek
Network World, 10/11/04
http://www.nwfusion.com/news/2004/101104storagetek.html
_______________________________________________________________
To contact: Mike Karp

Mike Karp is senior analyst with Enterprise Management 
Associates, focusing on storage, storage management and the 
methodology that brings these issues into the marketplace. He 
has spent more than 20 years in storage, systems management and 
telecommunications. Mike can be reached via e-mail 
<mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
This newsletter is sponsored by Veritas 
Meta Group Whitepaper 
Database Infrastructure Performance Challenges: Approaches to 
Better Manage Application Database and Storage Subsystem 
Performance 

Corporate relational databases now manage the majority of 
business-critical data within the enterprise. IT organizations 
face continuing challenges in managing increasingly complex, 
data-driven application environments. Read this white paper to 
discover several factors which will converge to challenge the IT 
organization's ability to manage its database software 
infrastructure. 
http://www.fattail.com/redir/redirect.asp?CID=84728
_______________________________________________________________
ARCHIVE LINKS

Archive of the Storage newsletter:  
http://www.nwfusion.com/newsletters/stor/index.html

Breaking storage news and analysis:
http://www.nwfusion.com/topics/storage.html
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