Launch of BT data storage

BT Group PLC
23 May 2002


23 MAY 2002

      BT, EMC AND DELL UNITE TO DRIVE OUT MASSIVE IT COSTS FROM BUSINESSES

  Converging expertise in networks and storage to deliver information agility

BT has today revealed its plans to become a leading provider of networked
information storage with the launch of BT Data Storage. This new portfolio is
expected to deliver around £190m a year of new revenue to BT Group by the end of
2004/05, and combines BT's network and security expertise and EMC's leading
storage solutions. Dell, as part of its strategic alliance with EMC and ongoing
partnership with BT, brings Dell and co-branded Dell/EMC storage to the
portfolio. BT Data Storage is being launched in response to growing market
demand for increased productivity, efficiency and cost savings by deploying
networked storage, and is comprised of 'best of breed' solutions from all three
companies.

With the launch of the BT Data Storage portfolio, BT, EMC and Dell are helping
businesses manage growing volumes of information. The range of services gives
customers the choice to keep all their information networked on-site, to
outsource management completely, or to retain some data on-site and back-up the
rest at a secure BT data centre. BT, EMC and Dell will continue working together
to develop the BT Data Storage portfolio, introducing further services such as
proactive monitoring and storage network management in the autumn of this year.

Andy Green, CEO of BT Ignite, BT's business services and solutions business,
said: "Three years from now, 75 per cent of the storage being bought will be
networked. Bringing storage into the network is part of the progressive
revolution toward IP as the standard language of business communications. BT,
EMC and Dell share the same vision for the networked storage market, and through
the combination of our unique expertise we are giving our customers access to
services that can help them to operate more effectively. The potential in this
market makes it an excellent business opportunity and an important part of BT
Group's strategy to grow new revenue, which we will be revealing in detail on 13
June."

Jim Rothnie, chief technology officer, of EMC, said: "There is a fundamental
economic argument for the move to networked storage; improved utilisation of
resources, and the increased accessibility and reliability of networked storage
can have a real impact on the bottom line. EMC has selected BT because of its
ongoing commitment to providing a world-class network which is an important
aspect of a storage solution. Our combined skill sets will bring tremendous
benefits to our mutual customers."

"Dell's storage strategy is focused on providing simplified and cost-effective
storage management tools critical to supporting customer's technology
infrastructure," said Brian McBride, Vice President, Northern Europe, Dell.
"This announcement helps us to deliver on that strategy. It is part of the
continuing evolution of the BT and Dell partnership, and demonstrates the
momentum and demand created by the Dell and EMC strategic relationship announced
late last year."

Networked storage will replace direct attached storage for medium and large
enterprises due to overwhelming economic and performance advantages, according
to 'The Storage Report' by Merrill Lynch & Co. and McKinsey & Company in June,
2001. 'The Storage Report' estimates that moving to networked storage gives an
average cost saving of $0.46 per megabyte over a 3 year period, through better
hardware utilisation and simplified management. Currently only around 25% of the
$6.89bn Western European storage market, is in networked storage.

The launch of BT Data Storage is a key element of BT's infrastructure strategy
and demonstrates its commitment to delivering market-leading solutions to
customers. The launch today of the Wavestream optical network portfolio
complements this. Through BT, businesses will now be able to benefit from the
efficiencies of networked information storage, and the ability to transfer large
volumes of data over high capacity optical networks.

                                     -ends-

                                Notes to editors

BT's own experience with storage:

  • Each week BT backs-up over 215 Terabytes of data
  • BT manages over 265 Terabytes of disk storage
  • BT manages over 1.5 Petabytes of tape storage
  • BT runs over 6,000 UNIX & NT Servers
  • Last year BT created 145 new Disaster Fallback solutions and performed 50
    system fallback rehearsals
  • BT configured over 600 servers for backup in one year
  • BT has implemented over 40 Storage Area Network configurations



About BT

BT is one of the world's leading providers of telecommunications services and
one of the largest private sector companies in Europe. Its principal activities
include local, long distance and international telecommunications services,
Internet and broadband services and IT solutions. In the UK, BT serves more than
28 million exchange lines as well as providing network services to other
licensed operators.

BT Group consists of:


  • BT Retail - the UK's largest communications service provider and the prime
    channel to market for BT's other businesses;

  • BT Wholesale - the provider of network services and solutions to
    communications companies, network operators and service providers;

  • BT Ignite - BT's business services and solutions business, serving
    customers worldwide; and

  • BTopenworld - a mass-market narrow and broadband Internet business.

Further businesses make up the BT Group, including BTexact Technologies, the
internationally renowned advanced research and technology business.

In the year to March 31, 2002, BT's group turnover was £18,447m with profit
before tax, goodwill and exceptionals of £1,273m.

For more information, visit www.btplc.com.

For more information please contact

Please contact Zoe Richardson at Catalysis Communications on

020 7665 4303, [e-mail]

About EMC

EMC Corporation is the world leader in information storage systems, software,
networks and services, providing the information infrastructure for a connected
world. Information about EMC's products and services can be found at http://
www.EMC.com.

About Dell

Dell Computer Corporation (Nasdaq: DELL), the world's most preferred computer
systems company, is a premier provider of products and services required for
customers worldwide to build their information-technology and Internet
infrastructures. The company's revenue for the past four quarters totaled $31.2
billion. Dell, through its direct business model, designs, manufactures and
customizes products and services to customer requirements, and offers an
extensive selection of software and peripherals. Information on Dell and its
products can be obtained on the World Wide Web at www.dell.com/uk

For more information, please contact:
Laura Kemp, Dell, 01344 37 8033 / [e-mail]


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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