EMC just had their first quarter earnings call, with earnings rising 28%.  International sales is attributed for the data storage company’s rise in profit.  EMC’s customers seem happy with the products, boosting spending.  A string of acquisitions has also flushed investors with reassurance.  The most relevant business, technology and product takeaways from EMC earnings:

Good product performance

• High-end growth driven by FAST-VP: high-end storage +25% y/y, driven by pent-up demand for FAST-VP tiering software, saw steep increase in sale of FAST-VP licenses, drove new vMax systems sales and upgrades

• Mid-tier pause ahead of VNX: mid-tier revs +20% y/y in qtr, saw some pause ahead of late-Feb VNX launch, VNXe starting shipping 2nd week of march, “VNX very well received by market”, VNX sales out of the gate larger than prior generation systems, VNX >50% of traditional mid-tier storage orders booked in last 2 weeks of qtr, >50% of VNX systems went out with flash capability, streamlined 25 different sw products into 5 suites…now much simpler to buy, dramatic increase in software penetration as result.

• Mid-tier positioning: VNX essentially replaces Clariion and Celerra, expect VNX growth to accelerate, in Q2 will be well over 50% of mid-tier growth, expect bounce back in total growth in mid-tier in Q2 with full qtr of VNX

Growth in investments and acquisitions

• Accelerating VCE investments: Expanding pipeline, headcount approaching 1000, given momentum accelerating investment in VCE

• Isilon Ahead of Plan: Isilon #’s exceeded expectations in first qtr w/EMC…more confident than when they bought it that they hit $1b run rate (Isilon + Atmos) by Q312

• Dell erosion continues: Dell partnership declined to <$40m in revs in Q1, continue to invest in other channels to offset this divorce

• More Confident Spending Outlook: now more confident they can meet or exceed prior 2011 goals given product and market positioning, still overall expect IT spend +5-7% y/y, most probably in high-end of this range

• Document and RSA inconsistent: outside of storage and VMware the non-core unit performance continues to be inconsistent, Content Mgmt -10% y/y, RSA impacted by cyber-attacks

• Use of cash: primary focus is buybacks and “smart acquisitions”, see a lot of opportunity for more “smart acquisitions”, will continue “string of pearls approach”

• EMC World: “will launch many new products that will extend IT technology stack”