EMC reported last Wednesday in the IDG News Service that the company’s revenue in the second quarter of this year has marked a new financial record. This steady increase is a result of huge demands from personal and business demands for a bigger database for their cloud computing efforts.
The big bulk of revenue they are getting is from their key subsidiary, VMware that reported a steady 37% growth in revenue over the last couple of years. EMC’s record showed evidence of this by their 20% earnings every year that rose to 4.85 billion dollars.
EMC realized its biggest growth through VMware business offerings; its other subsidiaries are also doing great in business revenues like that of RSA Information Security division which continues to grow by 13 % year after year. EMC’s Information data storage business also grew by 19% last year, while its high-end data storage platform, EMC Symmetrix VMAX recorded a 15% increase. Finally, EMC’s mid-layer data storage product also saw a 27% increase.
This unprecedented growth was attributed to the increasing demands for more data storage system required by customers so they can maximize their cloud computing experience, as stated by EMC Chairman and CEO Joseph Tucci. EMC Executive Vice President and Chief Financial Officer David Goulden said in a statement that businesses have no way to go but to adapt to the increasing demands of cloud computing for more data requirements. This is where they will need products like NAS (network-attached storage) vendor Isilon Systems.
Goulden said, that VMware’s virtualization platform was “the fundamental building block for cloud computing.”
In the United Sates alone, which represents 52% of the business, EMC’s revenue grew by 17% that recorded $2.5 billion earnings. EMC’s business outside of the United States also recorded a huge a $2.3 billion dollars of earning. This came primarily from countries like Latin America that recorded 43%, Japan by 34% and from Europe, Middle East and Africa, it grew by 20%.
In fact, EMC broke Thomson Financials poll and prediction results in its GAAP earnings from $0.34 to $0.35 per share. EMC also went above the revenue estimate of the firm by $4.73 billion.
According to Goulden, this trend in their revenue keeps them hoping to hit more than the $19.8 billion earnings this year. CEO Joe Tucci stated that they will be spending more on IT infrastructure to keep their storage and security platforms to grow “substantially faster.” Tucci said, “We had no major supply chain interruptions,” that is in Japan, even after the strong earthquake that recorded massive losses for many companies.
Even with the attacks they received in their RSA security division last March, they remained steady with their growth. Goulden said, “SecurID remains the industry standard.”
