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IBM Attacks EMC Customer Base: Page 2 of 4

From EMC's viewpoint, IBM's strategy is a reaction to EMC's strong surge this year, which comes after two years of losing market share to IBM and Hitachi Ltd. (NYSE: HIT; Paris: PHA) on the high end. "We're flattered," says EMC platforms marketing VP Chuck Hollis. "The heat is on [IBM]. All indications are we're gaining sizeable market share."

Analysts give IBM credit for making a move. "IBM keeps surprising me," says Arun Taneja of The Taneja Group. "It is so unlike the IBM we all used to know and hate. It's a different IBM. They've converted a tool into a product."

That tool, the little black box described above, makes this different from the usual battle for customers, says The Clipper Group Inc. director of enterprise architecture Anne MacFarland.

"There are always takeaway wars; that's nothing new," MacFarland says. "What's new is the piece of artillery they're using."

But even though IBM is making migrating data a less tedious process, some question whether that's enough to bring in a sizeable flow of new business. "The tool makes it easier to migrate, yes," says Taneja. "But you have to give the customer incentive to do it."