EMC Outlines Next Phase of Innovation and Leadership in Automated Network Storage
Information Storage Leader Reaffirms Outlook for Second Quarter at Analyst Meeting
NEW YORK--(BUSINESS WIRE)--June 6, 2002--EMC Corporation (NYSE:EMC - News), the world leader in information storage, today outlined the next phase of innovation in automated network storage, describing its vision for driving the convergence of multiple existing approaches through its AutoIS open software strategy and an expanding lineup of leading-edge hardware platforms. Addressing an overflow crowd at EMC's annual analyst meeting, under the theme, "New Dimensions," EMC executives detailed the company's strategy for growth and continued leadership in the most promising segments of the $50 billion global information storage market.
Joe Tucci, EMC President and CEO, said, "EMC is driving the most powerful shift our industry has ever seen - the growth and convergence of networked storage. We are accelerating customers' transition to automated network storage with both our AutoIS open software strategy and by continuing to extend our industry-leading storage platforms - up to the very high end of customer requirements and down into integrated storage appliances for customers with entry-level needs. New levels of professional services, offered by EMC directly and through our expanding services network, will enable more rapid and widespread customer implementation."
Tucci continued, "This shift is being accelerated by advanced software that takes responsibility for automating and managing the expanding volumes of information living on various types of networked storage. The resulting cost and productivity advantages customers can realize from automated network storage will continue to marginalize the role of traditional direct-attached storage and the major server vendors who cling to that approach." By 2005, industry analysts estimate that about 80% of all information storage deployed will be networked.
Commenting on the current quarter, Bill Teuber, EMC's Executive Vice President and Chief Financial Officer, reiterated the company's previously stated outlook for the second quarter of 2002, which ends June 30. As announced in April, EMC expects to achieve single-digit sequential revenue growth from the first quarter to the second quarter. At the same time, Teuber indicated that, as is usual, a significant portion of EMC's business remains to be completed in the third month of the quarter. EMC also stated that the company is comfortable with the consensus of current analysts' estimates for the second quarter. According to the First Call survey of analysts, the consensus estimate for EMC's second quarter is a loss of $0.02 per share.
Teuber said, "IT budgets remain closely scrutinized and customers continue to exert conservative capital spending strategies. Despite the economy, EMC continues to do a good job controlling the factors we can control. We exceeded our cost reduction goals set in late 2001 well ahead of schedule, and we have structured the corporation with tremendous leverage to be able to capitalize on future revenue growth."
Following the formation in late 2001 of separate operating units for Storage Platforms and Open Software, EMC today announced plans for expanded offerings in both categories.
Storage Platforms Strategy
The macro-trend of the consolidation of storage, network and server resources has given rise to the customer requirement for new levels of flexibility and depths of functionality across storage platform architectures. To address these needs, EMC today announced plans to migrate its EMC Symmetrix, EMC Celerra and EMC CLARiiON platforms both upward and downward. To maximize efficiencies and migrate functionality across product lines, EMC will incorporate common designs, components and functional software across its range of storage platforms.
Open Software Strategy
Broadening the foundation of its AutoIS (Automated Information Storage) software strategy, EMC outlined new details for realizing the AutoIS vision of making multi-vendor environments simple, automated and open. Three key elements are central to this vision: Intelligent Supervision, Infrastructure Services, and Information Safety.
Intelligent Supervision focuses on the management of heterogeneous
storage infrastructures and higher-level storage services. EMC
introduced this concept with the October 2001 announcement of
several AutoIS foundation products such as EMC ControlCenter
(ECC)/Open Edition, ECC StorageScope and ECC Replication Manager.
Moving forward, these products will offer increased depth and
breadth to provide enhanced policy-based management services such
as automated provisioning and enhanced storage service management
such as asset utilization and business charge-back. EMC customers
also will soon have the option of proactive management services --
including analysis, planning, tuning advice, and troubleshooting
assistance -- through remotely administered EMC service offerings.
Infrastructure Services mask the complexity of heterogeneous
storage environments and enable the automated provisioning,
presentation, and mobility of information. Moving forward, EMC
will offer a series of products that allow customers to
automatically provision multi-vendor storage resources,
non-disruptively assign storage to servers, and enable the
mobility of data between heterogeneous storage devices.
Information Safety enacts intelligent data protection across
customer environments to ensure the integrity of business
operations. Information Safety targets both the remote mirroring
of data to preserve separate online copies, and the use of
point-in-time-copies to provide instant recovery of data for
immediate use. Information Safety combines the various methods of
information replication to redirect data based on business needs
and usage trends.
About EMC
EMC Corporation (NYSE: EMC - News) is the world leader in information storage systems, software, networks and services, providing the information infrastructure for a connected world. Information about EMC's products and services can be found at www.EMC.com.
EMC, Symmetrix and CLARiiON are registered trademarks, and AutoIS, Celerra, ControlCenter, Replication Manager, and StorageScope, are trademarks of EMC Corporation. All other trademarks are the property of their respective owners.
This release 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) further adverse changes in general economic conditions; (ii) further delays or reductions in information technology spending; (iii) the company's ability to effectively manage operating costs and increase operating efficiencies; (iv) further declines in revenues; (v) insufficient, excess or obsolete inventory; (vi) competitive factors, including but not limited to pricing pressures; (vii) component quality and availability; (viii) rapid technological and market change and the transition to new products; (ix) the uncertainty of customer acceptance of new products; (x) the relative and varying rates of product price and component cost declines; (xi) the effects of war or acts of terrorism, including the effect on the economy generally, on particular industry segments, on transportation and communication systems and on the company's ability to manage logistics in such an environment, including receipt of components and distribution of products; (xii) the ability to attract and retain highly qualified employees; (xiii) the uneven pattern of quarterly sales; (xiv) fluctuating currency exchange rates; (xv) risks associated with strategic investments and acquisitions; (xvi) the Company's ability to execute on its plans; and (xvii) 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. |
