Grow, Cloud, Grow! EMC Expects 65 Percent Revenue Growth by 2014
EMC Corporation is expecting some great revenue figures for the next four years and estimated its revenues to swell by 65 percent by 2014. Not surprising, given the Big Data bragging rights they’ve commanded earlier this year. The credit for this rise goes to the increasing demand for efficient ways to store the mounting troves of files. Company’s executives are expecting more growth in the coming few years as their customers are bulking up their data centers. Besides, recent acquisitions they’ve made have also contributed towards expansion into fast-growing areas of the storage market.
“We are at an inflection point” in the information technology industry, Chief Financial Officer David Goulden said at an analyst event Tuesday. “There are going to be winners and losers in this next battle, and we’re confident we’re going to be a winner. EMC’s total addressable market is expected to grow an average of 10% a year from 2010 to 2014. By comparison, the average annual revenue growth rate from 2007 to 2010 was 9%, while EMC’s addressable market grew 6%.”
EMC shares are already up 55 percent over the last year, and recently picked up 11 cents to $26.11. Market analysts also believe that the company is in good position now to capitalize on an improving spending environment and cloud computing. It is also in limelight as data storage is crucial for cloud computing and enables companies to access computer servers over networks, allowing them to lower data costs.
“We did not invent the cloud, but we definitely have recognized the opportunity early,” EMC Chairman and Chief Executive Joe Tucci said. “No segment of the [information-technology] industry…will be immune to this disruption. We’re in a great position in storage for the cloud. We’re focusing our whole strategy on how to become the companies that take our customers on this journey to benefit from IT-as-a-service.”
EMC is also expecting to increase the free cash flow this year as $4 billion, higher as compared to previous year’s $3.4 billion.
Speaking of earnings reports, we recently heard about rising Microsoft’s earnings. The company sold more than 2 million Windows Phone 7 devices in Q4 2010 and also announced a record-breaking second-quarter revenue of $19.95 billion. In the same vein, QLogic, provider of data, server and storage networking infrastructure solutions also reported surging revenues with 76 percent growth. It reported a net revenue of $155.8 million and cash generated reaching $60 million. We’ve got a very thorough profile on EMC here, which is great background on today’s news.
A message from John Furrier, co-founder of SiliconANGLE:
Your vote of support is important to us and it helps us keep the content FREE.
One click below supports our mission to provide free, deep, and relevant content.
Join our community on YouTube
Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.
THANK YOU