Midrange Storage, VMware Growth Drive Strong EMC Results

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EMC offers four types of flash-based storage, including hybrid storage arrays containing spinning disks with a small amount of SSDs for performance; all flash-based arrays from its May acquisition of flash array developer XtremIO; its upcoming Thunder line of network-based flash storage appliances; and its VFCache line of PCIe flash memory modules for inside servers.

"EMC will be the only company offering the right flash solution for all situations," Goulden said.

EMC's RSA Security division saw revenue growth of 13 percent over last year to $221 million. Goulden said security is a top customer concern and that EMC has been working to integrate security with other EMC and VMware products.

VMware revenue rose 22 percent to $1.1 billion, Goulden said. VMware is 90-plus-percent owned by EMC.

EMC also continued to expand its channel relationships, particularly with service providers moving to offer cloud services, he said.

Joe Tucci, EMC chairman and CEO, said during the question-and-answer portion of Tuesday's financial analyst call that the growth in cloud storage should not have a major impact on EMC's revenue for the foreseeable future because of the company's cloud service provider relationships.

"We believe our strategy of being inside [an enterprise] with private clouds and working with public cloud services providers is working quite well," Tucci said.

Tucci said that EMC's flash storage strategy fits well with the four key considerations when looking at where data resides, including what kind of performance a particular piece of information requires, the persistency of that information, the longevity of that information, and the need to share that information.

Some data will sit in a cloud, as long as it meets customer SLAs and policies, while other data will sit in PCIe storage, in all-flash arrays or in mixed arrays. "It's not one size fits all," Tucci said.


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