QUOTE AND NEWS
The Economic Times  May 23  Comment 
EMC Corp, the maker of storage equipment and software, said the Smart City and digital India initiative is likely to add more business to the company.
Cloud Computing  May 21  Comment 
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager – Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, will review next generation cloud services, including the...
Jutia Group  May 11  Comment 
[PR Newswire] - EMC is now accepting nominations for the 2015 Heritage Trust Project to support projects that practice and encourage the stewardship of cultural information in local communities around the world. EMC has provided Heritage Trust...
Jutia Group  May 7  Comment 
[at Investopedia] - After information technology service company EMC (NYSE: EMC) missed first-quarter analyst estimates for revenue and earnings per share, and with shares down over 10% from levels six months ago, it is a ... Read more on this. ...
The Hindu Business Line  May 5  Comment 
Storage solutions provider EMC Corporation has announced major updates across various products besides data domain and protection portfolio. “The world is going through unprecedented tran...
Jutia Group  May 5  Comment 
[PR Newswire] - LAS VEGAS, May 5, 2015 /PRNewswire/ -- EMC WORLD 2015 -- News Highlights: Project CoprHD (copperhead) source code – shares the same core features and functionality of EMC ViPR Controller Project CoprHD ... Read more on this. EMC...
Jutia Group  May 4  Comment 
[PR Newswire] - EMC Corporation (EMC) today unveiled XtremIO™ version 4.0, a non-disruptive free software upgrade to XtremIO v3.X arrays. The new XtremIO 4.0 now supports new larger all-flash array configurations, expands on-demand capabilities...
Jutia Group  May 1  Comment 
[PR Newswire] - As the emergence of social media, Cloud, and Big Data continues to fuel the digital evolution, today's digital workplace must drive new levels of employee engagement, operational efficiency and service excellence. To help deliver...
Jutia Group  Apr 23  Comment 
[at American City Business Journals] - EMC Corp. (EMC) shares popped 3 percent yesterday after it attributed first quarter declines in net income and storage-equipment sales to geopolitical disruptions, rather than material declines in customer...




 
TOP CONTRIBUTORS


EMC (NYSE:EMC) is a world leader in high end data storage solutions and develops, delivers and supports the Information Technology (IT) industry’s infrastructure and virtual infrastructure technologies and solutions. Although historically EMC was more of a data storage company, it has increasingly branched out beyond data storage by acquiring a range of smaller companies and has become one of the largest provider of enterprise software in the world. Product offerings include software encryption and security products (RSA Security, Network Intelligence), content management for internet businesses (ProActivity Software Solutions), and operating system virtualization software (VMWare) markets.

The company operates in two segments: the Information Infrastructure business and the VMware Virtual Infrastructure business (VMware Inc. (VMW)). EMC owns 87% of VMware Inc. (VMW), whose stock went public in August 2007

The company is dependent on technology capital spending by its customers and is therefore highly sensitive to economic declines; IT spending is often one of the first items cut during a downturn. EMC has spread the risk of regional economic slowdown by expanding its geographic footprint. A significant portion of its revenues came from outside the U.S., and EMC has made investments in China to support a potential increase in IT demand in the region.

Company Overivew

Headquartered in Hopkinton, Massachusetts, EMC develops, delivers and supports the Information Technology (“IT”) industry’s broadest range of information infrastructure and virtual infrastructure technologies and solutions. Because hard drives are the slowest component of modern computers, and many large scale businesses need to store data in a centralized place, problems arise. As a result, many businesses focus a tremendous amount of capital on high performance hard drives. Industries particularly affected include health care, telecommunications, internet retailers, electronics, and financial services. EMC serves these customers' needs.

The core of EMC's customers are large businesses that rely on high end data storage solutions to manage e-mail, inventory, supply chain, backups and regulatory and compliance information (e.g., Home Depot (HD), Panasonic, Toyota Motor (TM), JetBlue (JBLU), ING Group (ING)). EMC also acts as a consultant for its high end storage products, providing support, services, maintenance, and help integrating these systems into the business.

In 2009, EMC had total revenues of $14.0 billion, earning a total net income of $1.12 billion.

Business Segments

The company operates in two segments: i) Information Infrastructure Business, and ii) VMware Virtual Infrastructure Business.

Information Infrastructure Business

EMC's Information Infrastructure Business provides the storage, protection, and guidance for customers' data and information. Within this segment, EMC further breaks down into three subsegments: i) Information Storage, ii) Content Management and Archiving, and iii) RSA Information Security.

VMware Virtual Infrastructure Business

VMware is the leading provider of virtualization solutions from the desktop to the data center and to the Cloud Computing. Virtualization is a technology that lets multiple operating systems run on a single computer, and it has a few large implications:

  • It allows a computers' tasks to be abstracted from a physical machine. As a result, backup and disaster recover are much more flexible and comprehensive and data can be moved or restored to a different machine in a manner of seconds. This alleviates the need to have duplicate copies of every business critical machine, and reduces IT costs.
  • Computer hardware resources are more flexible. A powerful computer can run multiple tasks concurrently across different operating systems such as Linux, UNIX, Windows and Mac at the same time.

Because of the advanced technical details and administration overhead of virtualized computer fleets, VMWare has strong customer lock-in and high profit margins. EMC IS CUSTOMER CENTRIC

Trends and Forces

Sensitivity to capital expenditures from other businesses

EMC makes most of its revenues from business-to-business sales, thus exposing the company to significant dependence on other businesses' capital expenditures. Expenditure on IT infrastructure is usually among the first items cut during economic declines. For this reason, EMC shows significant market sensitivity.

Foreign investment growth

EMC is a major international player. In addition to bringing in diversified revenue streams, EMC has made a significant bet on China. It has partnered with Oracle (ORCL) to establish a technology center in China for the display and development of their products. It is the first such center outside of the United States and Europe for the two companies and implies a future emphasis on the Asia-Pacific market. EMC has also begun spending on a $500 million facility in mainland China to focus on software development research. This should allow EMC to tap the large number of highly educated engineers in China, who often command salaries significantly lower than equivalent workers in the US and Europe. These endeavors should allow EMC to tap into the strong expected growth of IT in the region, especially if Asia-Pacific grows at a significantly faster rate than North America and Europe. EMC may be well positioned to take advantage of this Pacific boom with roughly half of its existing revenues already coming from overseas.

Competition

EMC has significant competition from other IT infrastructure providers and consulting companies such as Hewlett-Packard Company (HPQ), IBM, Unisys (UIS), Network Appliance (NTAP) and Hitachi (HIT). These competitors have comprehensive offerings and consulting services that compete with EMC's main business lines. Additionally, these competitors all offer more comprehensive computer hardware, as well as consulting and support services that make them attractive alternatives for businesses that seek broader services. In addition, lower end storage devices are producing significant speed improvements, bringing pressure from the mid-range storage market.

The virtualization market is less mature than hard drives but is also facing increasing competition. While VMWare has a lead in virtualization business with a significant portion of the total market share, threats are coming from several significant directions. Microsoft (MSFT) has placed a bet to offer products that run its proprietary operating systems exclusively. On the other hand, open source providers are entering this fast-growing sector. Already XenSource, an open source provider, has developed products with support for Windows operating systems and presents a viable alternative to VMWare.



References

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