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EMC, Dell Keep Dancing: Page 2 of 3

EMC and Dell like to refer to the deal publicly as a "win-win" for both sides, but Byte and Switch has learned there is plenty of tension between the sales teams that could add strain to the relationship going forward.

A Wall Street analyst close to both companies says EMC was recently forced to restructure the percentage that its own sales executives receive from sales of Clariion systems, as the Dell dudes were getting more of the pie.

"This didn’t go down too well and was causing some rift between the EMC salespeople and their Dell counterparts," our source says. Previously, EMC sales staff got credit for 100 percent of the base hardware sale, but nothing for add-ons, such as service, support, software, and peripherals (HBAs and switches) -- which can often be a sizeable part of the ticket.

"In an apparent attempt to arbitrate this issue, EMC has recalibrated the quota allocation to 125 percent of that base hardware ticket," the Wall Street source adds. This has apparently alleviated the tension, for now.

Should it turn out that Dell sells significantly more CX200’s than EMC, analysts say, the storage giant may decide to outsource manufacturing of the whole Clariion product family to Dell. EMC and Dell representatives say only that they are exploring all possibilities.