EMC
Despite some problems sustaining its profit margins, EMC has put on an impressive performance in the midst of the recent economic gloom. It continued to lead the information storage industry in 2008, and ended the year with revenues of $14.9 billion, the largest in the company’s 30-year history. However, because of the global recession, EMC expects its revenues for 2009 to have fallen by 6% year-on-year to $14 billion.
Over the last seven years EMC has expanded dramatically. Formerly a specialist in storage hardware and associated software, the company now also sells a wide range of information management and IT infrastructure software, as well as online services and even consumer hardware. This expansion has been achieved mostly through acquisitions, but it has not lowered EMC’s commitment to its core storage business, which still accounts for approximately 80% of the company’s revenues. Growth in that storage business and the effects of the acquisitions have almost tripled EMC’s revenues since 2002.
Because of the breadth of its storage and infrastructure portfolio, EMC is now well placed to benefit from the major industry trends of technology convergence and cloud computing. Before the expansion, those two trends would have been serious threats to EMC’s long-term future.
Over the last seven years EMC has expanded dramatically. Formerly a specialist in storage hardware and associated software, the company now also sells a wide range of information management and IT infrastructure software, as well as online services and even consumer hardware. This expansion has been achieved mostly through acquisitions, but it has not lowered EMC’s commitment to its core storage business, which still accounts for approximately 80% of the company’s revenues. Growth in that storage business and the effects of the acquisitions have almost tripled EMC’s revenues since 2002.
Because of the breadth of its storage and infrastructure portfolio, EMC is now well placed to benefit from the major industry trends of technology convergence and cloud computing. Before the expansion, those two trends would have been serious threats to EMC’s long-term future.
Executive summary
In a nutshell
The Ovum view
EMC’s expansion has anticipated industry trends
The alliance with Cisco is driven by technology convergence and EMC’s ownership of VMware
Public cloud computing is more problematic for EMC
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Competitive market
Key competitors
EMC’s differentiators
Company information
Structure
Products and services
Overview
Strategy
Strategic objectives
Strategy execution
Maintaining EMC’s storage position
Expanding EMC’s presence in data centre infrastructure
Developing EMC’s public cloud presence
Serving other public cloud providers
Expanding into consumer markets
Expanding its services business
Future outlook
Financial analysis
Group analysis
Segment analysis
In a nutshell
The Ovum view
EMC’s expansion has anticipated industry trends
The alliance with Cisco is driven by technology convergence and EMC’s ownership of VMware
Public cloud computing is more problematic for EMC
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Competitive market
Key competitors
EMC’s differentiators
Company information
Structure
Products and services
Overview
Strategy
Strategic objectives
Strategy execution
Maintaining EMC’s storage position
Expanding EMC’s presence in data centre infrastructure
Developing EMC’s public cloud presence
Serving other public cloud providers
Expanding into consumer markets
Expanding its services business
Future outlook
Financial analysis
Group analysis
Segment analysis
LIST OF TABLES
Table 1: EMC key financial indicators
Table 2: EMC segment analysis
Table 1: EMC key financial indicators
Table 2: EMC segment analysis
