EMC Talks Flash Storage, Pivotal Initiatives On 4Q Financial Call


The VCE market leadership to which Goulden referred was in reference to a recent IDC report in which VCE was shown to have a 50-plus-percent share of the converged infrastructure market, or better than twice the share of its largest competitor. Goulden said that demand for VCE Vblocks surpassed the $1 billion run rate during the fourth quarter.

EMC and VMware also plan this quarter to unveil details about the Pivotal Initiative, a new organization founded with cloud, business analytics and big data technology from VMware and EMC and headed by former VMware CEO Paul Maritz.

The Pivotal Initiative will be focused on developing big data analytics technologies and cloud developers' platforms, said EMC CEO Joe Tucci.

Currently, over half of EMC's storage revenue comes from indirect channels, Goulden said.

The channel charge is being led by EMC's VSPEX reference architecture, which was launched in the first half of 2012.

"After two quarters since its launch, partners have sold more than 1,300 VSPEX systems, which makes it by far the fastest-growing reference architecture in the market," Goulden said. "Partners responded so quickly because VSPEX offered wider configuration choices than other reference architectures in the market today. With configuration options that include technology from Brocade, Citrix, Cisco, Intel, Microsoft and VMware, VSPEX partners have much greater choice in creating solutions for customers."

Looking ahead at both EMC's and the IT industry's prospects in 2013, Tucci said he expects IT spending to increase 3 percent over 2012, while EMC's non-VMware revenue should grow about 6 percent.

EMC total revenue for 2013 is expected to reach $23.5 billion. Consolidated GAAP operating income is expected to be 18 percent of revenue in 2013, while non-GAAP income is slated to be 25.5 percent of revenue. GAAP earnings per share is expected to be $1.35, compared to $1.85 on a non-GAAP basis.

During the question-and-answer period, when asked by an analyst whether EMC expected the storage business to slow down because of new technologies that help customer gain increased efficiencies from existing capacity, Goulden replied that his company does not expect such an impact.

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