Data storage company EMC Corp. is reorganizing its operations as it tries to stave off fierce competition from such heavyweights as Compaq Computer Corp. and IBM.
The Hopkinton, Mass., company said last week that it is reorganizing into three divisions with distinct responsibilities: Storage Platforms Operations, Open Software Operations and Customer Operations.
This is the second move EMC has made to counter its decreasing market dominance. According to a report released late last month by International Data Corp., of Framingham, Mass., EMCs leading market share in the external storage market dropped to 21.2 percent this year. Rival Compaq saw its share jump to 15.4 this year, and IBMs share increased to 12.2 percent.
The company has also been rocked by the struggling economy. EMC posted a net loss of $945 million in the third quarter, its first loss in 12 years, and during a meeting with analysts last month, CEO and President Joe Tucci said the company was going to change the way it approached the market and its customers. It also announced plans to reduce expenses, including cutting 4,000 jobs.
"Were mad at ourselves that we slipped in execution," Tucci said at the time.
The Storage Platforms Operations group will combine the engineering and manufacturing divisions. Open Software Operations will be responsible chiefly for AutoIS, the companys new storage management product. Customer Operations will oversee distribution and support.