EMC Corp. (EMC), a leading provider of storage hardware and software has appointed Jeremy Burton as its new Executive Vice President and Chief Marketing Officer (CMO). Mr. Burton will report to Joe Tucci, EMC’s Chairman and Chief Executive Officer (CEO).
Mr. Burton will be responsible for the global structure, strategy, and execution of all of the aspects of EMC’s marketing efforts. Burton has extensive knowledge and experience in software and has the relevant marketing leadership to bring in a fresh perspective and dynamism to the company.
Mr. Burton was previously associated with Serena Software, where he was the President and CEO. Previously, as Group President of Symantec Corp.’s (SYMC) Security and Data Management Business Unit, Burton was responsible for the company’s $2 billion Enterprise Security product line. Prior to that role, he served as Executive Vice President of the Data Management Group at VERITAS, responsible for the company’s backup and archiving products. He also served as VERITAS’ Chief Marketing Officer. Earlier in his career, Burton spent nearly a decade at Oracle Corp. (ORCL), culminating in his role as Senior Vice President of Product and Services Marketing.
EMC Corp.’s aggressive acquisition strategy has been largely responsible for what the company is today. Over the longer-term the company should benefit from improved execution, impressive free cash flow, favorable new product cycle, stringent cost reduction efforts and the recent acquisition of Data Domain.
The acquisition of Data Domain will provide higher synergies beyond 2009 and position EMC as a leader in the enterprise storage and backup market. We believe the acquisition will be accretive to 2010 results.
However, EMC faces aggressive competition in the storage, networking and virtualization space from system vendors such as International Business Machines Corp. (IBM), NetApp, Inc. (NTAP), Hewlett-Packard Co. (HPQ) and Hitachi Data Systems. Particularly, Hewlett- Packard’s focus on virtualization across data centers and IBM’s high market share in the enterprise segment and growing presence in the networking industry increases competition for EMC.
Additionally EMC is facing pricing pressure from new products launched by Hewlett-Packard and Hitachi Data Systems which may lower margins. Further, EMC is highly dependent on the Symmetrix product line, which has a higher margin but is growing at a slower pace than the overall storage market. Such high dependence could create significant headwinds for the company in generating revenue and expanding its margin.
EMC offers a broad range of hardware, software and services that enable customers, particularly large corporations to effectively manage, store, protect and share information. It offers a wide range of services including enterprise content management, midrange enterprise disk arrays, storage resource management, security, information and event management, Web access management and storage services.
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