EMC Executive Vice President and CFO David Goulden Discusses EMC’s Second-Quarter 2011 Financial Results
EMC announced second-quarter 2011 financial results on July 20, 2011. EMC’s Executive Vice President and CFO David Goulden, discusses the results below. Additional information regarding EMC’s financial results is available here.
July 20, 2011
Another great quarter. What should we take away from these results?
David Goulden: Our second-quarter results are further evidence that our strategy is on target and we continue to execute on our triple play. We are gaining market share, investing for the future and improving profitability.
What’s driving this success?
David Goulden: Our unwavering focus on providing customers with the right technology to transform their IT, and get the most from their data, is resonating with our customers and winning us new ones. We have innovated and invested to stay in front of these needs and continue to do so day in and day out. It is this focus on innovation that has earned us our market-leading position, which continues to get stronger. There is no other company in IT with our combination of best-of-breed technology for both the virtualization and infrastructure layers that enable cloud computing, and for unlocking the value contained within the Big Data that surrounds us. Given that we are still closer to the beginning than the end of this fundamental shift to cloud computing, we continue to invest and innovate in the right areas to ensure we take full advantage of the massive opportunity that lies ahead.
How would you characterize EMC’s position in storage?
David Goulden: We are clearly gaining share across our portfolio for traditional data center workloads, for cloud deployments and for Big Data workloads. As we continue to seek out the most efficient and intelligent ways to handle these massive volumes of data, customers of all sizes and across all industries look to us for the best solutions for their unique IT storage requirements. All in, our storage portfolio is second to none. Our differentiated technology across our entire solution set – in the high-end, mid-tier, in backup and in Big Data – is driving our ongoing stronger-than-market growth. Since we are still in the early stages of the transition to IT-as-a-Service and of tackling Big Data, we are confident we will continue to gain market share.
Can you comment on the role partners play in EMC’s go-to-market strategy?
David Goulden: EMC has an extremely powerful set of solutions to help customers transition to the hybrid cloud and to take full advantage of their Big Data assets. But enabling customers to get to full agility in their cloud environments is not something EMC can do on our own. Fully transforming IT to the point where customers have control, efficiency and choice that today’s technology can enable requires the combined efforts of EMC and our partners. As we look across the IT ecosystem, we have identified a variety of opportunities to collaborate in ways that benefit EMC, our partners and, most importantly, our customers. To get customers to hybrid cloud and benefiting from Big Data, we are leveraging our own services organization as well as our channel and services partners, service providers, and our joint venture, VCE.
How is EMC progressing with its service provider partnerships?
David Goulden: Service providers are very important to the success of our hybrid cloud strategy. We have established partnerships with over forty leading service providers around the world to help them offer new public cloud services. Our service provider partner community includes Telcos like AT&T and Verizon; ISPs like Hosting.com; outsourcers like CSC, and even enterprises extending their core business, like NYSE Technologies. We expect the number of partners to grow, and more importantly, the cloud services provided by our partners to flourish, as the possibilities for improving the current state of IT with new and innovative cloud services are plentiful.
Any insight into the rest of 2011?
David Goulden: With our unique competitive position, the strength of our strategy and model, and the vast opportunity that lies ahead, we are excited about what we can accomplish in cloud computing and Big Data, not only in 2011 but over the course of the next several years.
EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way. Additional information about EMC can be found at www.EMC.com
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This document contains “forward-looking statements” as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) component and product quality and availability; (vi) fluctuations in VMware, Inc.’s operating results and risks associated with trading of VMware stock; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (ix) the ability to attract and retain highly qualified employees; (x) insufficient, excess or obsolete inventory; (xi) fluctuating currency exchange rates; (xii) threats and other disruptions to our secure data centers or networks; (xiii) our ability to protect our proprietary technology; (xiv) war or acts of terrorism; and (xv) other one-time events and other important factors disclosed previously and from time to time in EMC’s filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this document.