Lifted from Apollo on the Gorilla thread:
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EMC and Storage.....
Listened to a webcast presentation by EMC; GREAT slide presentation, with relevance to EMC, NTAP, even Brocade. My notes are available below.
The presenter referred to paradigms that we have discussed, and specifically mentioned Geoffrey Moore, Clayton Christensen, The GG, The Innovator's Dilemma and LOTFL. Tremendous relevance to much of our general Technology discussion, plus Storage specific discussion.
A must listen/must view.
Apollo
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EMC Presentation here in Boston, by Polly Pearson, VP of Global IR
informedinvestors.com
“The Dawn of the Information Democracy”
1. Expects to double revenues from $6 billion at beginning of 2000 to $12 billion by end of 2001
2. The increase in storage revenues for EMC Y-O-Y was 43%
3. Net income increased Y-o-Y by 50%
4. EMC expects 21% Storage revenue growth thru 2003; by comparison, annual revenue growth thru 2003 in other areas: global GDP 3.4%, PCs 5.9%, Servers 6.2%; Network Communications Equipment 8%.
5. Similar to discussions here, EMC perceives a series of evolutionary waves, including the “systems-centric wave” (IBM, ~ $80 billion total market value, peaked in 1981); PC-centric wave (Wintel, ~ $800 billion, peaked in 1999); Networked-centric wave (Cisco, NT, SUN, NOK, ~$8Trillion, est. to peak in 2015); Information-centric wave of information Online (projected at $80Trillion).
6. Predicts that tomorrow, Information will be nearly entirely wireless. Predicts that tomorrow, our children won't know what "cable" is.
7. Even old economy companies are now “leveraging” the Internet for information access;
8. Over next few years, Server industry will lose out sales dollars to Storage industry;
9. Information Technology……..40% goes to Storage first;
10. EMC has a 99% customer retention rate.
11. EMC is home to 2/3’s of the worlds mission critical information
12. Thinks Geoffrey Moore’s, The Gorilla Game, is a great book; it points out the market leader is tough to displace.
13. EMC’ s market share is very dominant in Storage hardware (51%, over nearest competitor, Hitachi at ~ 15%, IBM ~ 12%); is the leader in Storage software management….having overtaken IBM this year, with a market share of 18% vs. IBM’s 17%
14. Dominant in Enterprise Storage, Mid-range Storage, Storage Software, Storage Services, Switching submarket, then NAS (the smallest of these submarkets at $2 billion, but certainly a fast growing market). The main point here, relative to competition, is that EMC is the only company that plays in ALL of these submarkets. This is slide 26, and it does put EMC in perspective with NTAP.
15. Very aware of the Tech Company Life Cycle, and the threat of a disruptive technology, and CC’s views; the way to overcome this threat, or evolutionary phase, is to continue to grow and to innovate. She specifically mentions Geoffrey Moore’s LOTFL at this point.
16. EMC is an innovative company; for example, EMC was “1st to market in 1991 with Cached RAID, 1st to market in 1994 with Storage Software, 1st to market in 1995 with Enterprise Storage, and 1st to market in 1999 with Storage Networks”. By analogy, it cost the US $1 billion to “put a man on the moon”; EMC has spent “$2 billion in equivalent money, for R&D.”
17. Expect a Faster, shorter life cycle for products.
18. EMC has 2500 engineers dedicated to storage; 99% customer satisfaction; 99% customer retention.
19. Combining Network growth with online intelligent storage, should lead to enormous opportunities. EMC projects Market storage opportunity growing from $44 billion to $78 billion in 2003….for email, data warehousing, medical imaging; etc.; projects ALL information to be online……including your kids’ report cards, your MRI medical image, rich media, summer home designs; your auto registration, etc. In essence, EMC predicts that individual people, using broadband, wireless, etc will DRIVE storage demand, even more than Enterprises will drive demand. EMC predicts that EACH person will require 1 terabyte of information, and all of this will need to be stored. |
