EMC Corporation (EMC) maintains the deepest and broadest portfolio in the data storage industry, ranging from the high end with its Symmetrix systems to the entry level with its VNXe systems, positioning itself to benefit from the ever-growing need for data hosting and data storage, says Edward Parker, Senior Analyst at Lazard Capital Markets.
“In general, storage remains a good business to be in. And that’s because data continues to grow, and because storage buyers tend to be very conservative group with a low appetite for risk. Storage vendors like EMC and NetApp (NTAP) exploit that relatively well,” Parker said. “Growth in storage generally outpaces most other areas of IT infrastructure spending.”
EMC also holds an 80% ownership of Vmware (VMW), which he says is an indispensable data center asset, and EMC also has a history of acquiring and growing some of the strongest emerging platforms in the market, including Isilon for its scale-out systems and Data Domain for its disk backup systems, a past trend Parker says will repeat.
“You saw EMC buy Isilon and Data Domain; Dell (DELL) buy Compellent andEqualLogic; HP (HPQ) buy 3PAR; HDS buy BlueArc, among other examples,” Parker said. He says now that Flash technology has become increasingly vital,“EMC and some of the other larger vendors have recognized the potential disruption from these newer platforms and rather than repeat the mistake of allowing these companies to gain meaningful momentum in the market and significant valuations, they are being more aggressive and have actually started consolidating these startup Flash companies much earlier in the cycle.”
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