Feeds

EMC shows storage recession is over

The bellwether rings it out

Internet Security Threat Report 2014

Storage bellweather EMC has signalled the end of the recession in storageland with an enviable set of results. It made record first quarter revenues of $3.9bn, up 23 per cent from a year ago. Net income was $373m, a whopping 92 per cent increase from the recession-blighted first 2009 quarter.

Highlights were 28 per cent year-on-year revenue growth for the high-end Symmetrix, where the V-Max transition is almost complete, and 32 per cent growth for the mid-range products (CLARiiON, Celerra, Centera, Data Domain, Avamar, Atmos). Data Domain and Avamar deduplicating backup and recovery products each grew over 100 per cent over the same period. EMC said Iomega met unrelenting demand. VMware contributed first-quarter revenue of $632m, increasing 34 per cent compared with the year-ago quarter.

Adding the VMware figure to the EMC-only revenue number above gives a consolidated revenue of $4.532bn. Channel partners like Dell brought in around three-quarters of the revenue for the mid-range products.

Growth in the concept management and archiving division was sluggish. First quarter revenues of $178m were up just two per cent on the year-ago quarter. The services business was much better, growing 13 per cent over the same period. A harsh judgement would be that Document is dragging these figures down.

EMC is now forecasting consolidated revenues of $16.5bn for 2010, half a billion more than it previously expected. CEO Joe Tucci reckons EMC can sustain double-digit revenue growth for the long term. The earnings call transcript showed CFO David Goulden was a very happy guy: "We clearly executed on our triple play. We gained market share, we invested for the future and we improved profitability."

Tucci said EMC is focussing on four multi-billion-dollar markets: Transforming data centres into private clouds, building out public clouds, deduplicating backup and recovery, and virtualising client devices. In preparation for a more unified mid-tier file and block offering, and because CLARiiON arrays are seen in Celerra and Data Domain products, EMC has stopped breaking out specific mid-range product revenues and lumps them all together.

Referring to the expected convergence of CLARiiON and Celerra systems Tucci said: "Certainly we are absolutely collapsing platforms, our big message is unified ... Unified is absolutely the way to go." Asked if server virtualisation helped in unifying products, he replied:

"The bigger [helper] is the Intel multi-core [processor]. It takes time to rework your products but it gives you the ability now with multi-core and reworking some of your products into more thread-like approach so to speak it helps a lot. You’re right, there are products that we are putting natively under VMware and that overhead now is drastically reduced and gives us opportunities. It’s a combination of multi-core and virtualisation. Mostly the native use of multi-core that we’re doing."

He said the converged CLARIiON-Celerra product, thought to be called VCX, will not be out next quarter.

"First of all," he said, "I’m not going to say that that’s the name of the product. We have not named it yet. Certainly the bloggosphere has named it. I kind of like the name by the way. It will not be out in Q2 ... There are a lot of newer, what we call the NS product family, which are unified which we’ve released fairly recently. We shouldn’t get too hung up on whatever that code name is you used, VCX."

By "out" he could mean announced or shipped - it wasn't clear. Tucci also said that EMC wanted to expand its presence in the low end of mid-tier storage products, where it isn't as strong as it wants to be.

Talking of future acquisitions he said: "We are going to continue to buy companies both in VMware and in EMC."

The EMC results cap a sequence of sparkling quarterly reports from other storage companies like NetApp, Seagate, IBM's storage ops and Compellent. Yes, Compellent shares are down but's that's because of earnings, not revenues which were quite good.

One standout is FalconStor, whose storage software has not done well. Preliminary results for the first 2010 quarter are revenue to be in the range of $16.8-17.1m and a non-GAAP operating loss $5.8-$6.0m, due to lower than expected software license revenue. International software license revenue was highlighted as being down on a year-over-year basis.

Otherwise, storage companies are blossoming. It's spring, the winter recession is over and growth is being seen almost everywhere. ®

Beginner's guide to SSL certificates

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.