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Market snapshot with EMC boss

Market snapshot with EMC boss

EMC's head honcho, Joe Tucci, recently sat down with a group of journalists in Sydney to discuss the company roadmap, outline challenges and strengths in the local market, and talk about the evolving storage landscape. EMC is on a mission to evolve from its storage heritage into becoming a leader of information management. The purchase of VMware and RSA Security attests to its transformative push. Here are a few of Tucci's thoughts:

MARKET POTENTIAL:
Tucci said the local market was on a roll. It is growing faster than its international counterparts and the staff count is close to 1000.

"Australia has been doing great for us. We are growing at the rate in the mid-teens around the world, but Australia is growing considerably faster. This happened last year and I expect it will happen again this year.

"Our revenues this year will be more than $US12.7 billion and we have set a mid-teen growth rate year-on-year. We said we will grow the bottom line even faster at close to 20 per cent. Last year, 46 per cent of our revenue came from hardware; 38 per cent from software, and the remainder came from services."

And while share prices have been flat, he sees strength in the storage market. "EMC has about 20 per cent share in a $US60 billion plus market. It is growing substantially faster than IT as a whole. IT, as a whole, is about 4-5 per cent growth, where we're growing at 7-8 per cent."

VMWARE JOINING THE PARTY:
"We have this gem inside of EMC. We think VMware has tremendous value and it's not fully realised yet. The reason we're taking VMware public is to unlock some shareholder value."

CRITICISMS THAT HE SPENT TOO MUCH WHEN ACQUIRING RSA SECURITY FOR $US2.1 BILLION:
"Well I probably did, but what's the definition of too much?"

MAKING STORAGE CHEAPER AND EASIER:
"The biggest thing we can do to help customers save money is tier their storage."

THE SERVICES PUSH:
"EMC is an infrastructure company. Our strategy is not unlike Cisco or Microsoft, but dissimilar to an IBM or HP. We have 10,000 in our service organisation; it's not small. We want to grow our capability, but also partner with great service companies such as Accenture and EDS.

"IBM is becoming more and more of a services company; we invert that and want to build the team with specialists. We rely on partners and team with local systems integrators to go up against IBM Global Services...

"Our goal is not to be huge onto ourselves; we are more powerful by building an ecosystem around us."

THE ACQUISITION TRAIL:
"We will make lots of acquisitions this year, but we don't intend on making another big one. This could even include an acquisition over here in Australia."

THE NEXT WAVE OF STORAGE:
"There's another wave of storage, which will be more in tune to a Web environment, with Web 2.0. We are working on a few things at the moment."


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