EMC: Cloud, Big Data, Security Drive Strong Q1 Financials

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Other parts of EMC also showed strong growth over last year, including a near doubling of Isilon scale-out NAS storage sales, 19 percent growth in sales of EMC's RSA security technology and 25 percent growth in VMware sales over last year, as reported Wednesday.

The Vblock preconfigured cloud platform based on EMC storage and Cisco servers and networking built by VCE, a joint venture of those two vendors, saw demand more than double from last year, Goulden said. "Not only are new customers dying to try Vblocks out, [customers] are coming back with new orders," he said.

North America accounted for 54 percent of EMC's total sales, and sales to that market grew 11 percent over last year, Goulden said.

EMC's overall revenue growth of 11 percent over last year was much higher than the overall IT industry growth during that same period, Tucci said. For 2012, EMC expects overall IT spending to grow 3 percent to 4 percent, with storage growing faster and EMC's revenue growing even faster than that, he said.

During the question-and-answer period after EMC reported its first-quarter financials, Goulden said that hard-drive constraints from last year's Thailand floods, which destroyed a significant part of the world's hard-drive manufacturing, were still in play. However, he said, EMC was able to get enough drives to meet demand. EMC expects hard-drive supplies to remain constrained in the second quarter, he said.

When asked about cloud computing, Tucci said spending on private clouds will continue to be higher than spending on public clouds but that public cloud spending will grow more quickly.

Tucci also said that the hybrid cloud, where customers tie public and private clouds together so that private clouds can be utilized for things such as peak computing and test and development, also will grow in importance. "So it's not an either/or," he said.

NEXT: EMC's Project Thunder, Higher-End VMAX


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