EMC to Dramatically Lower Costs

Declaring "the spring in the EMC step is back," company officials say EMC will lower prices and enter new markets.

NEW YORK—Storage specialist EMC Corp. will lower its prices, enter new markets and continue its efforts in software interoperability, officials said at the annual Analysts Day here.

The plans are fueled by the recent and pending $1.3 billion acquisition of backup and monitoring vendor Legato Systems Inc. and by the mildly improving economy, CEO and President Joe Tucci said.

"The next generation of products will come out of the gate at a lower cost than the products theyre replacing," said Dave Donatelli, executive vice president of storage platforms operations.

EMC will achieve that goal through manufacturing and testing efficiencies and by having dual sources for its supply chain, he said. "Were going to dramatically lower our costs and costs to market. Were going to bring out new products faster ... than youve ever seen us do before," he said. Such products will cross all of EMCs hardware realms, including lower-end products such as the Clariion CX200 manufactured and sold by partner Dell Inc., Donatelli said.

Tape products are also on the Hopkinton, Mass., companys road map, he said. "What were working on now is deciding whether to partner here or to resell," he said.

There will not be an acquisition for that, Tucci added, in a separate interview.

For storage management, "by the end of the year our Clariion and Symmetrix lines will have full SMI compliance," Donatelli said. EMC officials have previously said that, although the Storage Networking Industry Associations Storage Management Initiative itself is still under development.

Mark Lewis, executive vice president of open software and chief technology officer, also reiterated prior company promises: that EMC will use volume management and multipathing technology to enable future advanced functions, such as storage fabric virtualization.

Next page: Legato plugs holes.