In 2013, EMC expanded its market share and extended its industry leadership, growing consolidated revenues by 7% to $23.2 billion.
Joe Tucci, Chairman and CEO, comments: "Our 2013 performance and market share gains demonstrate the strength of our strategy and our federated business model. We believe our strategic relevance to customers has never been higher, and we are very confident in our future."
Tucci points out that IT is being transformed by four powerful trends - mobile, cloud computing, big data and social networking. He believes this transformation is accelerating, and that the future will be both extremely disruptive and incredibly rich in opportunity for players in the IT industry.
Collectively, these four trends comprise what research firm IDC calls the "third platform" of IT (the first being mainframe, and the second being PC client/server) and an underlying foundation of security, privacy and trust is critical to its success.
"As we are in the early days of the third platform, we believe second platform architectures will continue to be the foundation of the enterprise data centre for many years to come," Tucci says. "Our strategy is to continue to take market share in this area and lead our customers on their journey to the third platform. We see enormous opportunity to help enterprises transform both IT and their business."
EMC will pursue this strategy through its federated business model that includes EMC Information Infrastructure (EMCii), VMware and Pivotal. Each business is strategically aligned, yet focused on its core mission - developing the best technology and building the right partner ecosystem to best serve customers. This federated model allows EMC to offer best-of-breed, integrated technology while preserving customers' ability to choose and deploy products from other IT companies.
"The third platform enables businesses to differentiate themselves by providing unique experiences to customers on mobile devices and by providing greater and more timely insight to business users. These new third platform capabilities are being built and architected in new ways," Tucci explains.
To capitalise on this opportunity, EMC formed Pivotal with technology and investments from EMC, VMware and GE. Led by CEO Paul Maritz, Pivotal launched Pivotal One, a powerful suite of technologies and capabilities that help customers build industrial strength big data applications faster, with more agility and better quality.
VMware, led by CEO Pat Gelsinger, is focused on three exciting market opportunities: the Software-Defined Data Centre; VMware Cloud Hybrid Services; and enterprise-class end-user computing.
EMC Information Infrastructure (EMCii), led by CEO David Goulden, includes the company's information storage, information intelligence and information security (RSA) businesses. EMCii continues to lead the market and gain share in storage, data protection and converged infrastructure.
According to Tucci, the third platform raises many new security challenges. High among them are identity verification and event analysis, both of which need to be risk-based and real-time. New security tools collect information from a wide range of security systems to analyse the flow of information and events across a network, to detect security breaches as they happen and help organisations respond to them in real time. "Security analytics, powered by big data, is becoming the next big thing in security and is central to the strategy of our RSA security division," he says.
EMC Information Infrastructure's services organisation continues to receive industry awards and recognition for providing an exceptional customer experience. Its ability to work with customers around the world to design, implement and support their IT systems is valued by customers and partners.
Collectively, across EMCii, VMware and Pivotal, EMC plans to invest $3 billion in research and development in 2014.
"We are confident we are making the right bets, pursuing the best growth opportunities, investing in innovative technologies and building the most competitive portfolio. Across our businesses, we have terrific assets, incredibly capable leaders in Paul Maritz, Pat Gelsinger and David Goulden, a strong bench of leaders under each of these executives, and the ability to recruit and retain top talent," Tucci says.
"Together, we have approximately 15 000 innovative engineers, almost 20 000 talented people in sales and marketing, and approximately 20 000 technical people in our services organisation to guide customers on their journey. We also have a portfolio of more than 7 900 granted patents and pending applications to protect our intellectual property and rich technology suite.
"This is a very dynamic time for our business and, in true EMC fashion, we are extremely energised and excited by our opportunity to invent, shape and lead our customers and our industry to the future."
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