QUOTE AND NEWS
Benzinga  Sep 5  Comment 
In a report published Friday, Morgan Stanley analyst Katy L. Huberty reiterated an Equal-Weight rating on EMC Corporation (NYSE: EMC). In the report, Morgan Stanley noted, “EMC Chairman and CEO, Joe Tucci, along with the three CEOs of EMC's...
SeekingAlpha  Sep 3  Comment 
By SA Transcripts: EMC Corporation (NYSE:EMC) Citi Global Technology Conference September 3, 2014 8:00 am ET Executives Dave Goulden - CEO, EMC Information Infrastructure Analysts Jim Suva - Citi Presentation Jim...
Benzinga  Aug 29  Comment 
In a note Thursday, Longbow Research published its mid-third quarter survey of IT storage resellers, which reflected additional signs of optimism. In particular, the firm focused on EMC (NYSE: EMC) and Network Appliance (NASDAQ: NTAP). Key...
Market Intelligence Center  Aug 26  Comment 
After closing Monday at $29.66, EMC Corp (EMC) presents an attractive opportunity to get a 8.05% return in just 144 days, which is an annualized return of 20.41% (for comparison purposes only). To enter this trade, sell one Jan. '15 $31.00 call...
Jutia Group  Aug 25  Comment 
[optionMONSTER] - One trader is making a cheap bet that EMC will reach its highest levels since 2001 in the next month. optionMONSTER's Heat Seeker tracking system detected the purchase of 2,603 September 32 calls for $0.06 ... Read more on this. ...
The Economic Times  Aug 14  Comment 
Desai told ET that EMC would be looking for startups with innovative technologies in the areas of flash storage, software-defined storage & converged infra.
Jutia Group  Aug 14  Comment 
[Market Realist] - On July 23, 2014, EMC reported its 2Q14 financial results. For the six months ending fiscal year 2014, product revenues contributed ~56% towards consolidated revenues. It was followed by services at 44%. ... Read more on this. ...
The DIV-Net  Aug 13  Comment 
On Monday a Wall Street Journal article reported that the hedge fund Elliott Management Corp has taken a more than $1 billion stake in EMC Corp (EMC) and revealed that it intends to petition the company to break itself apart.  Elliott believes...
Jutia Group  Aug 11  Comment 
[at noodls] - Avnet Global Computing Components (AGCC) EMEA to Distribute EMC OEM-Ready Solutions Aug 11, 2014 Bracknell, UK - Avnet Technology Solutions, the global IT solutions distributor and an operating group of ... Read more on this. EMC...
Market Intelligence Center  Aug 11  Comment 
MarketIntelligenceCenter.com's patented algorithms have identified an attractive covered-call trade on EMC Corp (EMC). Look at the Jan. '15 $30.00 covered call for a net debit in the $27.71 area. This trade has a duration of 159 days. The...




 
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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