IBM breaks up with NetApp - report

IBM to stop reselling NetApp's storage kit in favour of selling its own

IBM is set to stop reselling NetApp kit in favour of flogging customers its own wares instead, according to reports.

From today, IBM will formally withdraw from selling NetApp's N series systems and shut down development on the product line, according to Bloomberg which claims to have seen an internal memo containing details of the plan.

IBM will try to encourage customers to buy its own storage products instead, Bloomberg said.

The duo has worked together since April 2006 when IBM agreed to provide customers with NetApp's FAS series products and software in its IBM N series offering.

The pair claims on NetApp's website that the partnership "creates a compelling value proposition for customers who are seeking storage efficiency and virtualisation solutions in their datacentres".

Data compiled by Bloomberg shows that two per cent of NetApp's revenue comes from its deal with IBM. NetApp's share price slid 2.8 per cent when the rumours surfaced, while IBM's enjoyed about a one per cent hike.

NetApp said in a statement: "NetApp does not address rumours or speculation. NetApp remains committed to working with its OEM partners to position the value of its innovative storage and data management solutions."

IBM was unavailable to comment.