Also in software, "the addition of Legato has really filled every single hole" in EMCs feature matrix, he said. Overall, EMC currently gets 54 percent of its revenue from hardware, 22 percent from software and 24 percent from services. The previously stated goal of a 50-30-20 ratio is still intact, likely by the end of 2004, Tucci and CFO Bill Teuber said.EMC is spending its large cash reserve on buying back stock and is pondering paying dividends, he said. "The spring in the EMC step is back," he declared. Despite the rosy picture painted today, EMC still has a long way to go, especially in software, said financial analyst Shebly Seyrafi, of St. Louis-based A.G. Edwards & Sons Inc. "Theres a difference between having a presence in those businesses and filling those businesses," he noted.
Regarding Legato specifically, "if we execute properly here we can be a disrupter to the way the whole backup market is today," Tucci said. But as for EMCs future acquisitions, expected by the industry to be related to systems management to keep pace with Mountain View, Calif., rival Veritas Software Corp., "Really Im going to take the fifth here. ... Theres no win to tell you where our thought process goes," he said.