Feeds

EMC plots essential centralised decentralisation

Moving on from cupboard fitting

Next gen security for virtualised datacentres

EMC's Tuesday job cull would have been long expected by many in the company.

The firm has splurged $10bn in three years implementing Joe Tucci's grand vision of EMC as the go-to-guy for information lifecycle management. After two inventory misfires in a row, yesterday's results will be viewed as a qualified success by Wall Street, if not by the 1,250 staff set for the dumpster.

At Storage Expo today in London, EMC's top UK marketeer Nigel Ghent said the numbers showed the firm was "back on track". Tucci had issued mea culpas for Q1 and Q2, when EMC failed in the fairly fundamental task of operating an effective warehouse.

According to Ghent, more acquisitions are "a given" for a firm in EMC's diversifying role, though the widest holes in its rapidly broadening strategy have been patched. He said: "What Joe Tucci has done is do what he set out to do in 2002 and plug those big gaps."

Headway indeed seems to be being made in tackling the fundamental vulnerability of its old business model: putting other firms' hardware in fancy cupboards. It remains a huge part of what EMC does, but some 54 per cent of revenues are now delivered by software and services divisions. "We're competing with basically everybody," Ghent said.

EMC's other cultural problem stems from its heritage and status as one of the last conservative east coast IT giants; its geographic market exploitation has never matched HP's. EMC pulls 60 per cent of its revenues in the States, while at the very least 60 per cent of the market is away from home turf. HP realised this years ago in happier days, and continues to enjoy a more evenly spread haul.

Tucci excused wielding the knife yesterday with a need to centralise corporate functions. He and the rest of the board know the opposite must happen for EMC's business functions. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
VMware vaporises vCHS hybrid cloud service
AnD yEt mOre cRazy cAps to dEal wIth
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?