Its share rose from 12.7% in 2000 to 15.6% in '01, while EMC's fell from 20% to 17.3%. It hopes to up the ante with software linking storage and networks.
The acquisition of Com- paq made HP No. 1 in storage. It now rules the fast-growing midsize market with a 41% share, vs. EMC's 6%. On Aug. 20, it said it would share key technical specs with IBM.
A punishing hardware market has pushed longtime storage leader EMC into the red and battered its stock. EMC's goal now is to move into more profitable storage software and services. The risk: head-on collisions with burly rivals.
CISCO SYSTEMS (CSCO)
As storage moves onto networks, it enters Cisco's realm. On Aug. 20, the company took a big step into storage networking by agreeing to buy switchmaker Andiamo.
Last year, it partnered with EMC to sell midrange storage boxes. Now Dell plans to make and sell a low-end unit, using EMC technology. The risk: Dell's knowhow will grow until it no longer needs EMC.