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EMC offering Internet computer storage service

January 23, 2008|From Bloomberg News

EMC Corp., the world's biggest maker of storage computers, introduced Tuesday a service that lets companies back up information on their personal computers over the Internet.

EMC is pushing into software and services and away from reliance on less-profitable storage computers to spur growth. Chief Executive Joseph Tucci has spent $8 billion buying software companies in the last four years. The service uses software from Berkeley Data Systems, which EMC bought in October.

"It's going to help EMC move from storing bits in hardware to information management," said Roger Kay, an analyst with Endpoint Technologies Associates Inc. in Wayland, Mass.

"It's still in the early stages of development as a business," he added.

The MozyEnterprise service became available Tuesday in North America, EMC Vice President Tom Heiser said. It will be offered internationally later in the year.

MozyEnterprise uses a model known as software-as-a-service, pioneered by companies such as Salesforce.com Inc. and NetSuite Inc., which offer their programs through a Web browser. EMC, based in Hopkinton, Mass., will compete with Iron Mountain Inc. and Seagate Technology's EVault.

Companies using EMC's service can cut their storage costs by as much as 30% because they don't have to buy and maintain their own backup computers, said Roy Sanford, vice president of marketing for the new services.

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