IBM and STK shake DOJ

Posted on February 01, 1998

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IBM and STK shake DOJ

The U.S. Department of Justice recently ended an 18-month antitrust investigation into an OEM contract signed between IBM and Storage Technology in mid-1996. The agreement allowed IBM to resell a variety of STK`s high-end disk storage products, including the Ramac Virtual Array (RVA), originally developed as STK`s "Iceberg." The DOJ`s primary concern was that the original agreement would unfairly reduce competition in the market for mainframe-based disk arrays because it teamed two of the four leaders in that market. IBM and STK in December signed a new contract, including a consent decree, that extends through the year 2000.

"Because of the extended contract, end-users can be confident that their investments in our products are protected," says Chauncey Schwartz, director of worldwide marketing in STK`s DASD business group.

The new agreement frees the two vendors to pursue products due this year, including extended remote copy features, Serial Storage Architecture (SSA) disk drives, and the addition of support for Unix and Windows NT on arrays such as the RVA. The agreement does not cover tape technology.

Separately, STK recently signed an OEM deal with Hewlett-Packard under which HP will resell STK`s TimberWolf family of DLT libraries. STK was also expected to sign a similar agreement with Tandem Computers, which is owned by Compaq Computer.--DS


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