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MTI Halts Its Hardware: Page 2 of 3

Aberdeen Group Inc. analyst David Hill notes that it has been a struggle for MTI as a smaller player in the storage game. But he says that once MTI made the choice to refocus its business, joining forces with storage giant EMC was probably a good move. "They've picked a strong vendor," he says.

Today's agreement calls for MTI to resell EMC's full line of automated networked storage systems and software as part of its services offerings, including storage networking assessment, installation, resource management, and data protection. MTI will also sell EMC's management, infrastructure, and data protection software. In addition, MTI has become an EMC Authorized Service Network provider and will offer the ability to service EMC Clariion systems.

Will the new deal mean more layoffs at MTI? Linsky insists that the company's refocused business strategy won't involve any further restructuring of the business. "We've been moving out of manufacturing for quite some time," he says. "Now, we're going to start stacking up on our sales force." After laying off about 200 employees last year, the company currently has a headcount of 360 worldwide.

With reseller deals with companies in every field of the storage arena, the company claims to be uniquely positioned to offer customers unified service across the board of a range of best-of-breed products. "We're one of the few guys out there that cover the full spectrum of what we call storage," Linsky says.

MTI currently resells products from Brocade Communications Systems Inc. (Nasdaq: BRCD), Emulex Corp. (NYSE: ELX), FalconStor Software Inc. (Nasdaq: FALC), Legato Systems Inc. (Nasdaq: LGTO), Storage Technology Corp. (StorageTek) (NYSE: STK), QLogic Corp. (Nasdaq: QLGC), Quantum Corp. (NYSE: DSS), and Veritas Software Corp. (Nasdaq: VRTS).