Thursday, September 28, 2006

How cozy will Emulex and Intel get?

The duo shared the job of designing a family of integrated storage controllers announced Wednesday for SAS, SATA and Fibre Channel. Emulex provided the FC software and know how and Intel provided its XScale cores, SAS and SATA capability.

My question now is, could this lead to a deeper union? Before Paul Otellini goes to the mic Oct. 17 for a quarterly earnings call to give the final report on the Intel reorg might we see the Intel storage group sold to Emulex or the Fibre Channel company bought by the X86 giant? Whadaya think? --rbm

1 comment:

Anonymous said...

What are the three E's? Embrace, Extend, and, what is it, Eat your young? Intel partners with many until it learns enough to integrate the technology jewels into its own offerings. They make no bones about this practice. Emulex gets some needed technology help; Intel gets some needed solution help. In the end, Intel will consume and toss aside Emulex as they have others. With multi-core taking off and now Intel indicating that they will agument with specialized engines their processors, how long will it be before Emulex is no longer a valued partner? IDF presentations this week make it clear that Intel is not standing still but partnering to acquire the knowledge and skills to integrate value-add into their commodity solutions.

SAS / SATA and RAID in particular is still a good margin business. One that has enough value that Intel wants to take control and remove such technology as points of differentation leaving OEM to ponder their ability to innovate (in spite of what Dell projects about innovation, it states more marketing requirements than contributions to the technology itself).