EMC is looking to focus on providing end-to-end security for its customers and deliver more management capabilities in its software offerings, according to executives speaking at the company’s analyst day in New York on Thursday.
“We’re going to put more and more emphasis on the security of data,” EMC President and CEO Joe Tucci said. “We’re also going to do a lot more with [building] intelligence into our software than in the past.”
Tucci revealed that EMC plans to take the technology it acquired when it purchased network management software company SMARTS in February of this year and move it into its ControlCenter product to create a new offering to be called Storage Insight. Additionally, EMC plans to take some pieces out of its Documentum product line, notably its repository and workflow and “repurpose it” to go after the resource management market, he said.
Tucci charted EMC’s development from a pure storage company from 1991 to 2002, then adding in a focus on information management during 2003 and this year, with the firm “morphing again into an information infrastructure company,” he said. “It’s a big change, but we’ll still be strong on storage and information management.”
EMC estimates the market it’s aiming at with its storage hardware, software and services will be worth $51 billion in 2005, with the company currently owning about a 19% share, according to Tucci. He expects the market to grow to $55 billion in 2006 with EMC having a 20% share. “There’s a tremendous amount of headroom in the market” for us to grow more, Tucci added.
The company is about a third of the way through what Tucci describes as its “most prolific product rollout ever” with plenty more hardware and software to appear over the coming eight or so months.
EMC’s revenue for fiscal 2005 is on track to grow about 17% to $9.65 billion with earnings per share of between 50 cents and 51 cents, all figures on a generally accepted accounting principles (GAAP) basis, according to Tucci. “We want to be a $11 billion business in 2006,” he said.
Currently, hardware sales account for 46% of EMC’s revenue, with software at 37% and services at 17%, Tucci said. Hardware sales are growing at 15%, software at 23% and services at 26%. EMC acquisition strategy will focus on the software side of its business, with some additional purchases to fill out the company’s service offerings geographically, he added.
