Page 1 of 2
EMC on Wednesday laid out how it plans to become a $30-billion company by 2016 by not only growing each of its primary storage businesses but also growing them faster than its competitors in each of the individual storage sub-markets.
David Goulden, EMC president and COO, said during the EMC and VMware Strategic Forum for Institutional Investors that EMC has seen its revenue grow about three times faster than the storage business as a whole, and that there is no reason to believe that won't continue into the foreseeable future.
"We believe we are well positioned to grow faster than the marketplace," Goulden said.
Including EMC's storage business, its VMware business, and the business of its new Pivotal Initiative, EMC expects a CAGR, or cumulative annual growth rate, of 8 percent between 2012 and 2016, Goulden said.
"But we don't plan to maintain share," he said. "We plan to grow share."
Over the last five years, EMC's CAGR has been 10 percent including revenue from its acquired businesses, or 7 percent if the acquisitions are not included, which has been about three times that of the IT market as a whole, Goulden said.
EMC's growth has come from a number of factors such as the $20.9 billion the company has invested in marketing between 2008 and 2012, including a heavy investment in the channel, Goulden said.
"We're often mentioned as No. 1 in the channel marketplace," he said, referring to CRN's ARC (Annual Report Card) awards, which in late 2012 saw solution providers name EMC the top-rated vendor in the enterprise network storage and SMB network storage categories.
During that time, EMC has also made $9.1 billion in acquisitions of technology developers in the cloud, big data and security markets. That included $7.6 billion in acquisitions of companies that initially brought EMC annualized revenue of $800 million but which accounted for $3 billion of revenue in 2012.
Goulden said it also includes $1.5 billion on acquisitions that have yet to bring new revenue, including all-flash storage array developer XtremIO and cloud-based mobile file share developer Syncplicity, as well as VMware's acquisition of software-defined networking developer Nicira and big data analytics developer Cetas.
"We believe this has been a very prudent, a very wise allocation of cash," he said.