Lenovo joins forces with EMC

Beijing-based PC vendor, Lenovo, wants a bigger piece of the server and networking storage market, while EMC wants to expand its footprint in China.

China-based PC vendor Lenovo has struck up a partnership with EMC in a bid to gain more ground in the servers and networking storage space.

The relationship will help EMC expand its footprint in China and other growth markets.

The two vendors have started a server technology development program that will see Lenovo bring out its own x86 industry standard servers, which will be gradually embedded into selected EMC storage systems.

In return, Lenovo will market EMC's network storage products to customers, including channel partners in China and, eventually, in other global markets.

"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," Lenovo chairman and CEO Yuanqing Yang said in a statement.

Lenovo will also be investing cash, while EMC will bring in certain assets of its Iomega business, in a new joint venture to provide network attached storage (NAS) systems to business customers.

The joint venture is subject to regulatory approvals and is expected to be finalised by the end of the year.

The partnership has not been set in stone, and has yet to be factored into either vendors' current financial year earnings.