EMC Cuts to the Core

5:40 PM -- EMC, which reported a solid set of second-quarter results today, is turning up the heat on storage rivals IBM and HP. (See EMC Reports Q2 Results.)

Much has been made over recent weeks of EMC's efforts to step on the toes of vendors like Symantec in the security space, although today's earnings reveal that the Hopkinton, Mass.-based firm has also fortified its core storage business. (See Symantec Drifts Into Xen, XenSource Signs Symantec OEM, and EMC Plans Product Blitz.)

With EMC's hardware revenues up more than 17 percent year-over-year, IBM and HP clearly have their work cut out. "We believe that EMC further solidified its market-leading position," wrote TBR analyst Allan Krans in a note released this morning, pointing to IBM's reported storage growth of 6 percent during the second quarter, and HP's 1 percent growth during the first quarter of this year.

EMC, as we know, is hell-bent on branding itself as an information infrastructure management company, encompassing the likes of security and document management, prompting concern from some users worried about a loss of focus. (See Tucci Aims for 'One EMC' and EMC's World.)

Today's financial results suggest that this scenario is unlikely, at least in the near term, although analyst Allan Krans urges EMC to keep its eyes on the storage prize. "Without a strong base in EMCs current markets, we do not believe that the vendor will have the shareholder support or positive financial momentum to move forward with its expansion efforts," he writes.EMC CEO Joe Tucci seems to be taking this message on board, which spells good news for users, and bad news for IBM and HP.

— James Rogers, Senior Editor Byte and Switch