EMC Beats Q2 Estimates, Studies Cloud Expansion in India

A recent EMC-commissioned study reveals that the private cloud computing industry will grow 10 times in a span of four years and create 100,000 new jobs.

Zinnov Management Consulting has performed a comprehensive study on over 100 CIOs & IT decision makers in India.  Zinnov found that India currently has $400 million in total cloud market value, and would increase to $4.5 billion by 2015. A big portion of the estimated value would come from the private cloud market, constituting $3.5 billion in revenues, with a growth rate of 60%.

It is evident that more companies from India are adopting the cloud. Estimates suggest that total IT expenditures would rise from 1.4% in 2011 to 8.2% in 2015. Moving into the cloud could also attribute to potential savings of 50% on the IT investments on average.

“Cloud computing will generate new opportunities for IT vendors and driving changes in traditional IT offerings. There is a high chance that companies that are not adopting IT today and don’t have major investments in datacenters and server farms will directly move into the cloud model,” says Pari Natarajan, CEO of Zinnov Management Consulting.

Meanwhile, EMC also announced its Q2 earnings. With the growing demand for storage products and virtualized infrastructure, EMC’s has experienced all-time record increase in profit and revenue.

EMC’s Q2 revenue rose to $4.85 billion which increased by 20% compared to Q2 of last year. This exceeds the $4.74 million average estimate by analysts. On the other hand, net income amounts to $546 million, or 24 cents per share, which increased by 28% compared to Q2 of last year.  VMware, which is majority-owned by EMC, is also doing well with a 37% increase of revenues and profit was 55 cents per share.

Joe Tucci, EMC Chairman and Chief Executive Officer, said, “Our record-setting performance during the quarter was marked by balanced growth, solid execution and significant technology innovation as customers around the world continue to embrace EMC’s cloud computing and Big Data strategies.  It is our firm belief that this strategy is well-placed and underpinned with winning products and services and strategic partners.

“We remain confident in our ability to continue delivering strong results this year and over the long term.  Furthermore, we remain committed to investing heavily to extend our technology lead and help customers and service provider partners accelerate their IT and business model transformations.”

About Robert Manto

Robert is a staff writer for SiliconAngle.