Cisco says EMC partnership beating expectations

SAN FRANCISCO Thu May 20, 2010 9:27pm BST

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SAN FRANCISCO (Reuters) - Sales of a new line of high-end computer systems from Cisco Systems Inc (CSCO.O) and EMC Corp (EMC.N) are taking off faster than the two companies anticipated, a senior Cisco executive said on Thursday.

Cisco Executive Vice President Rob Lloyd said the companies have sold dozens of the machines, which bundle Cisco's networking equipment and computer servers with storage gear from EMC and its software unit VMware Inc (VMW.N). Hundreds more orders are in their deal pipeline, he said.

"We've exceeded our expectations," Lloyd told the Reuters Global Technology Summit in San Francisco.

The new Vblock computer line from Cisco and EMC, which started shipping about three months ago, competes with products from Dell Inc DELL.O, Hewlett-Packard Co (HPQ.N), IBM (IBM.N) and Oracle Corp ORCL.O.

Before the two companies announced their partnership in November, investors had speculated that Cisco would buy EMC.

Lloyd said that the speculation was unfounded because Cisco believed it made more sense to partner with EMC and had not looked at buying the company.

(Reporting by Jim Finkle and Ritsuko Ando; editing by Carol Bishopric)