9/11/2023 0 Comments Emc stock chart![]() The acquisitions have expanded EMC’s technology, and they have to build that out to their services organization.’’ “ IBM and HP are very established from a services standpoint. But one area they need to move up in is the services side of the organization,’’ Freed says. ![]() “Against their peers, they have the advantage of being focused on storage. Sales, service, supportĮMC faces another challenge when it comes to the basic blocking and tackling of sales, service and support. Just because they’ve been good at spinning disks doesn’t imply that they can also be our only infrastructure-management vendor,” he says. “It would be a leap of faith - one that I don’t have yet - to say that EMC has done so well with storage that they’ll be equally good with information security. If they can say, ‘Storage is about infrastructure, but information is about business,’ as a way to break out of the core storage view that people have of them, they’ll be successful,’’ Carter says.īut Carter says he isn’t ready to entrust EMC with all of his information-infrastructure needs. “EMC has a credible story, and when they do articulate it, they’re successful. “They have the IT mind-share in storage hardware, but the big question is can they gain mind-share in the virtualization market, with VMware and other markets.”Ĭarter says he wonders where Documentum, Smarts, RSA and other recently acquired technologies fit into EMC’s overall product plans. “Their new marketing strategy is not clear to me,” says Chris Carter, director of enterprise technology services at PPL Corp., an electricity-generation company in Allentown, Pa. These days the term ILM is taking a back seat to the concept of information management, a broader concept that encompasses not only managing data through its life cycle, but also protecting and securing it.įor some customers, the message remains murky. Since 2003, EMC has led the industry in promoting the concept of information life-cycle management (ILM). EMC has to sell its vision of information management and demonstrate how the recently acquired software technology fits into the company’s existing product lineup. Ultimately, however, success involves more than just adding new software revenue streams from acquired companies. In 2006, software and services accounted for about 52% of EMC’s business, compared with 48% for hardware. “In 2001, up to three of every four dollars in revenue were from hardware sales,’’ says Brian Freed, an analyst at Morgan Keegan & Co. On paper, EMC has been successful in transitioning from its core storage hardware business, which is becoming more of a commodity, into faster-growing and higher-margin software and services. For example, at its May user group meeting, the company announced that by year-end it will begin delivering a common platform for managing the company’s myriad storage lines. Integration is no small challenge, but EMC has made announcements indicating that it is a top priority. “Integration of all this technology, woven together in a seamless orchestration - what we refer to as information infrastructure - is our strategic move, and will steer the way for the future of information management,’’ he adds. (EMC did make one of those tuck-ins in early June, when its RSA division picked up tiny identity-verification services vendor Verid.) Aside from smaller technology ‘tuck-in’ acquisitions, there are no large deals on the drawing board,’’ Lewis says. “We’re phenomenally well positioned with the assets we’ve built internally and those we’ve acquired over the last several years. The company hasn't made any major acquisitions this year and Mark Lewis, executive vice president and chief development officer, says the buying spree is, for the most part, over. “You can't expect everything to play together nicely,” she says.ĮMC appears to be on the same page as its customers when it comes to the integration issue. “It concerns me that so much acquisition will eventually cause integration difficulties for us,” says Ann-Marie Horcher, senior groupware specialist at Dow Corning in Midland, Mich. This dizzying pace has some customers wary.
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