Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Cloud
    • Cloud
    • IT Management
    • Networking
    • Storage
    • Virtualization

    EMC Reports 28 Percent Jump in Q3 Profits, Expects Slower 2012

    Written by

    Chris Preimesberger
    Published October 18, 2011
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      EMC’s newly refreshed enterprise storage line, featuring 41 new products launched in the last 18 months, apparently is also refreshing the company’s revenue and profit levels.

      The huge storage, security and cloud infrastructure provider continues to file impressive quarterly reports, posting record third-quarter results Oct. 18 that included a 28 percent jump in profits year-over-year.

      Hopkinton, Mass.-based EMC reported third-quarter consolidated revenue at $4.98 billion, an increase of 18 percent from the same period a year ago. Net income for the quarter was $606 million.

      On Track to Near $20 Billion in 2011

      CFO David Goulden told listeners during a conference call that the company expects to bring in just slightly short of $20 billion ($19.8 billion, a record) for the 2011 calendar year.

      Revenue from EMC’s Information Storage business increased 16 percent overall year-over-year. Revenue from the company’s high-end Symmetrix storage portfolio increased 7 percent from the year-ago quarter, and the mid-tier storage products-led by new sales of the VNX and VNXe arrays-grew revenue 28 percent year-over-year.

      Revenue from VMware, majority-owned by EMC, increased 32 percent, and revenue from EMC’s RSA Information Security business grew 16 percent year-over-year.

      Goulden said revenue from EMC’s portfolio of “big data” hardware and software packages, which includes EMC Isilon, EMC Atmos and EMC Greenplum, more than doubled year-over-year.

      Goulden also said that VCE, the Virtual Computing Environment company formed by Cisco and EMC with investments from VMware and Intel, is “gaining momentum as customer demand increased for best-of-breed converged infrastructure through the Vblock Infrastructure Platform.”

      2012 Will Be Slower but Steady

      EMC, like VMware said in its quarterly report on Oct. 17, expects IT spending to slow somewhat in 2012, meaning the growth margins will still be significant-just slightly less than in 2011.

      “Customers are continuing to scrutinize very carefully their IT buys,” CEO and President Joe Tucci said on the call. “Even so, we expect that IT spending in Q4 will represent a meaningful increase, but perhaps a tick below a normal Q3 to Q4 increase.

      “I have three beliefs about 2012: First, we expect that there will be growth in global IT spending next year, but this growth will be somewhat lower than what we are seeing this year. Second, we are confident that interest and investment in the cloud, big data and security will remain top IT spending priorities.

      “Third, we expect EMC to continue to gain share in our markets, therefore growing significantly faster than the IT spending growth average.”

      Tucci did not address the Oct. 17 news that the company’s partnership with Dell to resell EMC hardware has been dissolved following a 10-year run.

      Editor’s note: This story was updated to correct the percentage of net profit from 32 to 28 percent.

      Chris Preimesberger
      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.
      Linkedin Twitter

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.