EMC Expands Exec Changes, Releases Preliminary 2Q Financials8:39 PM EST Tue. Jul. 17, 2012
EMC continued an ongoing massive strengthening of its executive team with the promotions of several top executives including two who are considered top candidates to replace Chairman and CEO Joe Tucci.
The promotions followed a similar wave of executive appointments unveiled Friday, as well as the appointment of a top EMC executive to run VMware.
EMC on Tuesday also announced preliminary second fiscal quarter 2012 financial results showing the company is still on the way towards reporting full-year revenue of $22 billion.
Tucci also reiterated his plans to remain in the EMC chairman and CEO role through the end of 2013, as long as he remains healthy. "And I'm pretty healthy," Tucci said at a Tuesday joint EMC-VMware conference call.
During that conference call, EMC confirmed CRN reports that former COO and President of EMC's Information Infrastructure Products division Pat Gelsinger was appointed CEO of VMware.
Gelsinger on September 1 will assume his new role. At that time, he will also become a member of VMware's Board of Directors.
Gelsinger is taking over the VMware CEO role from Paul Maritz. Maritz, in turn, will join EMC as chief strategist, where he will report to Tucci.
EMC also said that David Goulden has been appointed president and COO of EMC. Goulden, a 10-year EMC veteran, has been serving as EMC's CFO since 2006, and will continue to do so.
Goulden and Gelsinger are the two executives most-often mentioned in the storage industry as likely successors to Tucci. Tucci on Tuesday repeated earlier comments that his successor will most likely come from within EMC, but he did not discuss succession plans in detail.
Also moving up the corporate ladder with new responsibilities at EMC are Howard Elias and Jeremy Burton.
Elias, currently EMC's president and COO of information infrastructure services, going forward will be responsible for EMC's solutions group and EMC's corporate shared services in addition to his current responsibilities for EMC support, education, consulting and pre-sales activities.
Burton, who is EMC's chief marketing officer, has been promoted to executive vice president of product operations and marketing.
NEXT: "Large Pair Of Shoes To Fill"
Goulden said at the conference call that he has been consolidating much of the work related to the CFO office over the past two years to his second-in-command, Denis Cashman, EMC's chief operating and accounting officer.
He also said that a large part of his responsibilities as EMC's new COO, which includes a large part of Gelsinger's previous role, will be shared with Elias and Burton in their expanded roles.
"Relative to Pat, we have a large pair of shoes to fit, but at least we have filled one of them. ... Pat has been the driving force in leading the technology, but he had a good group of people under him," Goulden said.
Gelsinger during the conference call confirmed reports that EMC will be doing more to embrace virtualization technology in its storage product lines.
"All EMC storage assets will become virtual appliances, and all storage assets will run virtual machines," he said. "This will expand the role of EMC running a broader range of applications."
EMC's plans for expanding virtualization technology in storage, including support from VMware, has already been passed to Goulden, Gelsinger said.
"My role on the VMware side is to support these actions," he said.
On the financial side, EMC said that it expects to report record second fiscal quarter revenue of $5.31 billion, which is up 10 percent compared to the second quarter 2011 results. The company also estimated second-quarter non-GAAP earnings per share to hit 39 cents per share, up 11 percent over the same period last year.
As a result, EMC expects full 2012 revenue to hit $22 billion, and non-GAAP earnings per share to hit $1.7.
Official results of the second-quarter financials are slated to be released on Tuesday.
PUBLISHED JULY 17, 2012