Feeds

Rival bid forced EMC to 'pay too much' for RSA - CEO

How do you define gouged?

Gartner critical capabilities for enterprise endpoint backup

After devouring more than 20 companies since 2003, storage company EMC has a half-billion dollar tummy-ache.

At a media briefing in Sydney, EMC CEO Joe Tucci admitted last week to overspending on the company's $2.1bn acquisition of RSA.

When pushed on the RSA buy, Tucci said, "Well I probably did (overspend), but what’s the definition of too much?”.

"It's market value at the time was around $1.6 billion and we paid $500 million more than that, but it was a very competitive bidding process which came down to us and one other party," said Tucci. The identity of the other party was not revealed.

Market analysts have gagged at the high price tag since the company's acquisition of RSA last June. Tucci asserts that the splurging for the software security company was worth it.

"Time will prove that RSA is a great asset and this was a great acquisition," said Tucci.

The overspending has not soured EMC's hunger for smaller companies. Tucci said EMC will be making more acquisitions throughout the year, although none on the scale of RSA. EMC has spent more than $6bn on acquisitions since 2003, buying companies such as Documentum ($1.7bn), VMWare ($635m) and Legato ($1.3bn). According to Tucci, the company plans on acquiring additional companies this year to beef-up its current line-up rather than charging into new technology areas, as it did with RSA.

Tucci also stuck close to EMC's January forecast for the 2007 fiscal year during the briefing. "Revenues will be north of $12.7 billion this year with the bottom line growing close to 20 percent," he said.

However, according to one source, some analysts predict the company will struggle to meet its internal forecast for the first quarter.

Tucci fancies that gobbling up companies have metamorphosed EMC from a wriggling storage maker caterpillar into a beautiful "information management company" butterfly.

"We spent 15 years building up EMC as a storage company, and now we're saying we need customers to think of us as much more," Tucci said.

Tucci played to his audience, singling-out Australia as one of EMC's strongest markets, saying EMC's growth in the country will out pace the company's worldwide business. ®

Secure remote control for conventional and virtual desktops

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
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.