EMC President and COO David Goulden Discusses EMC’s Second-Quarter 2012 Financial Results

EMC announced second-quarter 2012 financial results on July 24, 2012. EMC’s President and COO David Goulden, discusses the results below. Additional information regarding EMC’s financial results is available here.

Image: David Goulden - EMC President and COO
David Goulden - EMC President and COO

July 24, 2012

An excellent second quarter. What should we take away from it?

David Goulden: Our ability to deliver these solid results is linked in large part to our strategy, which is to help companies use Cloud technologies and Big Data assets in a trusted environment. To take advantage of the fundamental trends of Cloud and Big Data, we have not only made transformational changes to our product portfolio, but we have expanded our customers’ options for how they buy IT as well. As a result, our go-to-market model has evolved considerably over the past several years. We have strengthened and expanded our alliance partnerships; invested heavily in our channel relationships; expanded our reseller base; and sharpened our services capabilities to help our customers successfully transition to cloud architectures.

How would you characterize EMC’s position in information storage?

David Goulden: All in, we have assembled a best-of-breed portfolio of storage offerings that covers a wide array of customer needs with technology that truly requires “no compromise” on the part of our customers. Some of these technologies were initially acquired, and some were developed in our own labs. Either way, a key value proposition we have developed over the past several years is bringing our wide array of offerings together via common hardware, leveraging generally available and industry-standard components. The benefits of this strategy are many, including faster time to market, lower cost of goods sold, better quality, lower support costs, greater efficiencies from engineering, better leverage of our supply chain, and more efficient inventory management. On the software side of things, getting to a more holistic view makes customers’ growing and heterogeneous environments simpler. In addition to VMware integration that is unmatched by any other storage provider, we continue to enhance integration across our products elsewhere to generate more value for our customers.

How is EMC’s Backup Recovery Systems portfolio doing?

David Goulden: Our Backup Recovery Systems business also continued to be a growth engine for EMC in Q2. Demand for our newly launched Data Domain 990 exceeded our high expectations. As customers re-architect their IT infrastructures, they are looking across their entire backup landscape and thinking differently about how backup can be done most effectively. This is where EMC comes in. Not only do our offerings cover a full range of backup requirements, they are integrated with other technologies in the data center in ways that make a difference to the user. Avamar is a good example of this. Its most recent edition, Avamar 6.1, expanded support for HyperV environments, and also now delivers three times the backup performance and thirty times the recovery performance of its nearest competitor in VMware environments.

Can you share some insight on Isilon’s scale out NAS growth?

David Goulden: One of the hottest areas in storage right now is scale-out NAS. Companies seek solutions that can accommodate the explosive growth of unstructured data, and do so simply and at scale. As a result, our scale-out file offering from Isilon continues to thrive, as it is an excellent option for customers who are looking for a truly linear scale-out solution, especially given the lack of compelling alternatives. Isilon remains well-suited for extremely large-scale Big Data needs, and with continued technical innovation and the help of EMC’s core sales force, is being deployed in mainstream data centers, at some very large customers.

EMC’s RSA Security business had another strong quarter. Can you talk about what’s driving its growth?

David Goulden: Customers understand that with IT security, there is no longer a question of whether there will be an attack. Rather, the question in today’s advanced threat environment is how quickly and effectively attacks can be thwarted. Because the threat landscape changes rapidly, companies’ defenses need the agile, risk-based, and contextual solutions that RSA offers. While our products do very well individually, customers are increasingly embracing the value of the integration across them. For example, NetWitness, Archer, EnVision and DLP work together to provide controls and visibility features that are based upon agile, predictive analytics and continuous monitoring of massive and growing amounts of data. Additionally, there are integrations between RSA’s Data Loss Prevention technology and VMware’s vShield; as well as between Archer and EMC’s Network and Storage Configuration Managers and VMware’s vSphere -- all enhancements to accelerate customers’ journey to the cloud, without sacrificing trust.

EMC’s service provider relationships appear strong and gaining traction. What is your strategy with this vertical?

David Goulden: One of the greatest differences today compared with just a few years ago is the advent of IT service providers, and this is a trend that we have not only followed but fostered. We teamed up early with several key cloud service providers, including CSC, Verizon/Terremark, AT&T, Telefonica, Rackspace, Cable and Wireless, Colt, Telstra and many, many others. This early entry allowed us to pioneer this new space together, and has given us a head start on creating the technology solutions necessary to support enterprise-class cloud services. Some of the essentials, we have found, include giving our partners tools to support things like policy-based service levels and flexible disaster recovery service models. The recently announced VMAX SP is an excellent example. As a result, many of these service providers have standardized on EMC technology for their business-class “as-a-service” offerings. We continue to see rapid growth from the Service Provider vertical.


About EMC

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

EMC, Archer, Avamar, Data Domain, enVision, Isilon, NetWitness, RSA and VMAX are either registered trademarks or trademarks of EMC Corporation in the United States and/or other countries. VMware, vSphere and vShield are either registered trademarks or trademarks of VMware, Inc. in the United States and/or other countries. All other trademarks used are the property of their respective owners.

Forward-Looking Statements

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.