Lenovo and EMC Team Up in Strategic Worldwide Partnership

Author
SySAdmin
Posted
July 31, 2012
Views
1830

Page All:

Page 1
Lenovo and EMC Team Up in Strategic Worldwide Partnership

A solid step in Lenovo's aspiration to be a player in industry standard servers and networked storage with EMC's leading technology; EMC further strengthens ability to serve customers' storage solutions needs in China and other emerging markets; Companies agree to form SMB-focused storage joint venture

BEIJING, Aug. 1, 2012 /PRNewswire/ -- Lenovo (HKSE: 992) (ADR: LNVGY) and EMC Corporation (NYSE: EMC) today announced a broad partnership that enhances Lenovo's position in industry standard servers and networked storage solutions, while significantly expanding EMC's reach in China and other key, high-growth markets.  The new partnership is expected to spark innovation and additional R&D in the server and storage markets by maximizing the product development talents and resources at both companies, while driving scale and efficiency in the partners' respective supply chains.

The partnership is a strong strategic fit, leveraging the two leading companies' respective strengths, across three main areas:

    --  First, Lenovo and EMC have formed a server technology development
        program that will accelerate and extend Lenovo's capabilities in the x86
        industry-standard server segment. These servers will be brought to
        market by Lenovo and embedded into selected EMC storage systems over
        time.
    --  Second, the companies have forged an OEM and reseller relationship in
        which Lenovo will provide EMC's industry-leading networked storage
        solutions to its customers, initially in China and expanding into other
        global markets in step with the ongoing development of its server
        business.
    --  Finally, EMC and Lenovo plan to bring certain assets and resources from
        EMC's Iomega business into a new joint venture which will provide
        Network Attached Storage (NAS) systems to small/medium businesses (SMB)
        and distributed enterprise sites.
"Today's announcement with industry leader EMC is another solid step in our journey to build on our foundation in PCs and become a leader in the new PC-plus era," said Yuanqing Yang, Lenovo chairman and CEO. "This partnership will help us fully deliver on our PC-plus strategy by giving us strong back-end capabilities and business foundation in servers and storage, in addition to our already strong position in devices. EMC is the perfect partner to help us fully realize the PC-plus opportunity in the long term."

Joe Tucci, chairman and CEO of EMC, said, "The relationship with Lenovo represents a powerful opportunity for EMC to significantly expand our presence in China, a vibrant and very important market, and extend it to other parts of the world over time. Lenovo has clearly demonstrated its ability to apply its considerable resources and expertise not only to enter, but to lead major market segments. We're excited to partner with Lenovo as we focus our combined energies serving a broader range of customers with industry-leading storage and server solutions."

In the joint venture, Lenovo will contribute cash, while EMC will contribute certain assets and resources of Iomega. Upon closing, Lenovo will hold a majority interest in the new joint venture. During and after the transition from independent operations to the joint venture, customers will experience continuity of service, product delivery and warranty fulfillment.  The joint venture is subject to customary closing procedures including regulatory approvals and is expected to close by the end of 2012.

The partnership described here is not considered material to either company's current fiscal year earnings.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a $US30 billion personal technology company and the world's second largest PC company, serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo's business is built on product innovation, a highly efficient global supply chain and strong strategic execution. Formed by Lenovo Group's acquisition of the former IBM Personal Computing Division, the Company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina.  For more information, see http://www.lenovo.com.

About EMC

EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset -- information -- in a more agile, trusted and cost-efficient way. Additional information about EMC can be found at http://www.EMC.com.

EMC is either a registered trademark or trademark of EMC Corporation in the United States and other countries. Iomega is either a registered trademark or trademark of Iomega Corporation in the United States and other countries.

This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) component and product quality and availability; (vi) fluctuations in VMware, Inc.'s operating results and risks associated with trading of VMware stock; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (ix) the ability to attract and retain highly qualified employees; (x) insufficient, excess or obsolete inventory; (xi) fluctuating currency exchange rates; (xii) threats and other disruptions to our secure data centers or networks; (xiii) our ability to protect our proprietary technology; (xiv) war or acts of terrorism; and (xv) other one-time events and other important factors disclosed previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this release.

SOURCE  EMC Corporation

EMC Corporation

CONTACT: Lenovo - US: Raymond Gorman, +1-919-257-6325, rgorman@lenovo.com, or China: Penny Chu, +8610 5886 2651, chuxp1@lenovo.com, or Hong Kong: Angela Lee, +852 2516 4810 angelalee@lenovo.com; EMC - US: Dave Farmer, +1-508-293-7206, dave.farmer@emc.com, or China: Amanda Wu, +8610-8438-6166, amanda.wu@emc.com

Web Site: http://www.emc.com

Title

Medium Image View Large