How do EMC's expanded manufacturing and distribution partnerships affect IBM's strategy?

Number one, they're distributing a product that nobody appears to want, which is a single-controller, low-end storage device. It didn't work with Dell, and now I think they're seeking other partners. [IBM] had tremendous growth in [the SMB market] last year. We grew roughly three times as fast in SMB as in our large accounts. Sure, we're always looking for the right kinds of partners. We just signed a very interesting alliance with a very, very large industry player in one of the key segments. I don't think I can talk about it yet.

Do you agree with some analysts who say the IBM/Network Appliance relationship has created a sales conflict?

In general, the partnership is going extremely well. We got products to market in record time last year. I do not see conflict. To me, it's the uninformed talking to the uninformed.

Are user complaints about the industrywide high cost of storage valid?