Articles for EMC

EMC Worth $42, Amps Up Focus on Network-Attached Storage Market with Isilon Acquisition

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Tuesday, January 10th, 2012 by Trefis Team

Since its acquisition of Isilon in late 2010, EMC (NYSE:EMC) has made making significant progress in scale-out network attached storage (NAS) market, a fast-growing segment under the total open networked disk storage market. While Isilon has long been leader in the scale-out NAS market, EMC’s ownership has provided a major boost to Isilon sales which are expected to double in the fourth quarter of 2011 from the $60+ million seen during the time of its acquisition. The Isilon acquisition has provided EMC a clear advantage over arch rival NetApp (NASDAQ:NTAP), which launched its ONTAP 8.1 scale-out NAS clustering product last year in response to EMC’s growing presence in scale-out NAS market.

We have a $42.15 Trefis price estimate for EMC, which is nearly double the market price.

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Europe Will Drag on IT Spending in 2012

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Monday, January 9th, 2012 by Trefis Team

Worldwide IT spending is forecast to total $3.8 trillion in 2012, a 3.7 percent increase from 2011 according to the latest outlook report released by research firm Gartner. While not much of a surprise, the growth estimate for 2012 is much lower than the 6.9 percent experienced by the industry in 2011 primarily due to the impact of Eurozone crisis and hard-disk drive shortage resulting from the flooding in Thailand. Lower IT spending could impact players like Accenture (NYSE:ACN), IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and SAP (NYSE:SAP) while a hard drive shortage will weigh on HP (NYSE:HPQ) and Dell (NASDAQ:DELL) as well as enterprise storage vendors like EMC (NYSE:EMC), NetApp (NASDAQ:NTAP) and IBM.

The reduced spending is expected to impact all the four major technology sectors, including computing hardware, enterprise software, IT services and telecommunications equipment and services, which will witness low to mid single digit growth in the year.

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EMC’s Worth $42 on Storage Software Market Growth

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Wednesday, January 4th, 2012 by Trefis Team

EMC (NYSE:EMC) is the global leader in the disk storage system market as well as the storage software market. However, EMC’s stock has fallen from the highs of around $30 during the middle of 2011 to about $21-22 in December 2011. Even NetApp (NASDAQ:NTAP), EMC’s only major pureplay storage competitor, saw its stock tumble in the second half of 2011 largely due to concerns of lower government and enterprise spending as the macroeconomic condition deteriorated in the U.S. and Europe.

Our price estimate of $42.15 for EMC is about double the market price. We believe that two key drivers of EMC’s stock and our views on those drivers explain why our price estimate is well ahead of the market price. Below we highlight these drivers in detail.

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Storage Software’s Boom: EMC Holds Market Share While NetApp, Others Slip

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Tuesday, December 13th, 2011 by Trefis Team

According to a recent release by research firm IDC, storage software revenues reached $3.5 billion in the third quarter of 2011, up 9.7% over the same period last year. EMC (NYSE:EMC) maintained its lead with a 24.5% market share for the quarter, almost flat vs. last year, followed by Symantec (NASDAQ:SYMC), IBM (NYSE:IBM) and NetApp (NASDAQ:NTAP) with 15.3%, 14% and 8.8% shares respectively.

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EMC Unveils Big Data Analytics Platform, $42 Fair Value

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Monday, December 12th, 2011 by Trefis Team

On Thursday, EMC Corporation (NYSE:EMC) unveiled the EMC Greenplum Unified Analytics Platform (UAP) – the next-generation platform to support Big Data analytics. EMC is pitching its Greenplum UAP as a single, unified data analytics platform that facilitates the discovery and sharing of insights from Big Data, which in turn lead to greater business value for customers. EMC estimates Big Data as a $70 billion market and is looking to come up with the best solutions to tap potential customers, as are competitors like IBM (NYSE:IBM) and HP (NYSE:HPQ).

We currently have a $42 Trefis price estimate for EMC

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Big Data is for Real: EMC Sees a $70 Billion Industry Growing at Double Digits

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Wednesday, November 9th, 2011 by Trefis Team

According to EMC (NYSE:EMC) President Pat Gelsinger, Big Data is a $70 billion industry and growing at a rapid rate of 15% to 20% a year. In our view, this helps put to rest the notion that ‘Big Data’ is just a fanciful marketing term. As IDC puts it, “Big Data developments will be perhaps the most critical new marketplace for storage solutions providers in the coming decade. Providing a strong portfolio of complete Big Data solutions – hardware, software, and implementation services – will be a high priority to succeed.”

These are indeed exciting times for storage players like EMC, NetApp (NASDAQ:NTAP), HP (NYSE:HPQ), IBM (NYSE:IBM), and Dell (NASDAQ:DELL) among others that now face the challenge of securing their position in an industry undergoing rapid changes. We see outsized returns for the companies well positioned for this trend like EMC.

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EMC Releases All-Flash Version of its Unified Storage Offering

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Friday, November 4th, 2011 by Trefis Team

EMC (NYSE:EMC) recently released an all flash version of its mid-range array, the VNX. This is the firm’s unified storage offering which it launched earlier this year in competition to arch rival NetApp (NASDAQ:NTAP), the dominant player in the unified storage market. The launch of the EMC’s all flash array comes at a time when the disk storage systems segment is witnessing a shifting trend towards all flash arrays with enterprises’ storage needs changing thick and fast and thereby almost forcing all the major disk storage system vendor to build, buy or partner with companies specializing in flash technology. (See Enterprises Embrace All-Flash Arrays for Storage, EMC & Others Take Notice) However, this is indeed a good development for EMC – the largest player in the global disk storage systems market – as it could now fend off new players that have been attracting potential clients away from disk storage system vendors through their all flash offerings as well as best competitors like HP (NYSE:HPQ), IBM (NYSE:IBM) and Dell (NASDAQ:DELL) with its timely launch.

We currently have a $42.15 Trefis price estimate for EMC.

See our full analysis of EMC.

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EMC Q3’11 Preview: What We’re Watching on Tuesday

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Monday, October 17th, 2011 by Trefis Team

EMC (NYSE:EMC) is set to release its Q3’11 earnings tomorrow amid strong consensus estimates from analysts, the majority of which (87.1%) rate EMC as a buy. EMC is already the largest player in the global external disk storage systems market and gained significant market share (a 3.1% jump) in Q2’11, further extending its lead further over IBM (NYSE:IBM), NetApp (NASDAQ:NTAP) and HP (NYSE:HPQ), according to a report released by research firm IDC last month.

We currently have a $37.60 Trefis price estimate for EMC, which is significantly above the market price and based on our DCF valuation method. Below we summarize some of the major factors to look for in EMC’s upcoming earnings.

See our full analysis of EMC.

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EMC’s a Key Beneficiary of Rapid Growth in External Storage Market

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Thursday, September 22nd, 2011 by Trefis Team

Despite uncertain economic conditions and companies maintaining tight control on IT budgets, the global external disk storage market is growing massively. According to IDC data, the overall external disk storage market posted double digit growth in Q2 2011 on year over year basis, and EMC (NYSE:EMC) maintained its leadership with around 28% revenue share followed by IBM (NYSE:IBM) and NetApp (NASDAQ:NTAP) with ~14% and 13%, respectively. Exponential growth in digital information and greater adoption of newer technologies like cloud computing, big data and virtualization have contributed to growth in external storage systems, and EMC will be the biggest beneficiary with its stronghold in SAN and NAS markets as well as continued growth in unified storage.

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EMC Extends its Leadership in Disk Storage Systems Market

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Friday, September 16th, 2011 by Trefis Team

EMC (NYSE:EMC) gained significant market share in the worldwide external disk storage systems market in second quarter of 2011, further extending its lead over competitors IBM (NYSE:IBM) and  NetApp (NASDAQ:NTAP) that account for near 14% and 13% market share respectively, according to a recent press release by International Data Corporation (IDC) Worldwide Quarterly Disk Storage Systems Tracker.

We currently have a $37.60 Trefis price estimate for EMC which is significantly above the market price.

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