EMC (NYSE:EMC) announced October 4, 2012 that its former Huawei senior executive John Roese is now its new chief technology officer, replacing Jeff Nick. Roese has been brought in to shape EMC’s technology strategy as the company grows driven by cloud, big data and IT storage. Roese has more than 20 years of leadership experience in the IT industry and most recently served as senior VP & GM for Huawei’s North American R&D organization.
EMC expects 2012 revenues of $22 billion with operating income of 17.5% of revenues or $3.85 billion. Further, it expects consolidated operating cash flows of $6.2 billion for 2012 and free cash flow of $4.9 billion for 2012.
- EMC Earnings: Information Infrastructure Business Continues To Stumble As Dell Merger Edges Closer
- EMC Earnings Preview: VMware, Pivotal To Drive Results As Storage Business Remains Depressed
- Storage Notes: NetApp, HP, IBM Not Really Impacted By Dell-EMC Deal
- EMC Q3 Earnings: Core Storage Stagnates, VMware Still Drives Growth
- EMC Earnings Preview: Focus On What Lies Ahead Post-Dell Takeover
- Dell Buys EMC In A Mammoth $67 Billion Deal, VMware To Remain Public
Trends to Watch For
EMC acquired XtremIO in May 2012 to improve its flash memory storage offering, and this is reflected by growth in its high-end storage network. Through its Velocity program, the company has signed up major providers such as Verizon-Terremark, Singapore Telecommunications and AT&T to provide private cloud networks, and we expect this division to grow significantly in the second half of 2012. EMC is already the market leader in global external disk storage systems market, and we expect it to maintain its leading position.
The company had acquired Montreal-based data center and cloud infrastructure management software provider Watch4Net. The acquisition was an all-cash transaction. Its most popular product is called APG and is a performance management application that provides visibility into the performance of the clients network, data centers and cloud infrastructures. It provides real-time data as well as historical and projected. ((EMC Acquires Watch4Net, www.emc.com))
It also acquired cloud-based file management solutions provider Syncplicity. Its products are cloud-based solutions built for the enterprise and enables users to interact and share content on any wireless device with high levels of security and governance. Using its tools, employees can sync, share and manage files across their enterprise machines which will maximize productivity while protecting corporate data, and reducing infrastructure and support costs. This acquisition seems to be a Bring Your Own Device (BYOD) play by EMC and may be like a Dropbox for enterprise. 
We can expect network analytics and performance management services from the Watch4Net acquisition and the BYOD service from the Syncplicity acquisition to play a major role in the coming quarters.
We currently have a $52 Trefis price estimate for EMC, which is significantly higher than the current market price.Notes: