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EMC off to strong start in 2010

Microscope contributor

EMC is planning on growing faster than the market this year by taking share from rivals and got off to a good start in a bullish first quarter.

Sales were up 23% to $3.9bn - including a 22% climb in the Information Infrastructure division to $3.3bn and a 34% rise in VMware which contributed $632m to the top line - as profits soared 92% to $373m.

David Goulden, CFO at the storage linchpin, forecast its addressable market to grow in the region of 6-8% in 2010.

"We expect to gain a significant amount of market share this year and it seems pretty clear that we are off to a good start in this regard," he said in a conference call with analysts.

Mirroring comments made by its virtualisation business VMware this week, EMC said it saw pent up demand that emerged in the Q4 spill into 2010 with hotspots including the storage business in the US, especially in financial services.

In the Information Infrastructure unit product revenues grew 27% year-on-year to $2,2bn with services rising 13% to $1.1bn.

At the high-end, Symetrix sales were up 28%, while the Mid tier operation - a division which EMC created to collate products including Clariion, Avamar and Data Domain - was up 32% to $800m, with the channel accounting for 75% of these revenues.

Security operation RSA saw sales rise 13% to $161m in the quarter and Content Management and Archiving (CMA) revenues were up 2% to $178m including 8% growth in licenses.

The four major opportunities EMC has in the market were aiding CIOs transform data centres into private clouds, helping service providers build public clouds, lead next-gen back-up, recovery and archiving and push client virtualisation.


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