EMC Corp. (EMC), a leading provider of information infrastructure solutions, released three new additions to Greenplum’s Data Computing Appliance (DCA) products known as the High Capacity DCA, the High Performance DCA and the Data Integration Accelerator. EMC also announced the release of Greenplum Database version 4.1.
EMC acquired Greenplum in July 2010 and introduced EMC Greenplum Data Computing Appliance in October 2010. This integrated data warehousing system was built by using Greenplum’s massively parallel processing architecture (MPP).
The original DCA product used Greenplum Database 4.0 and had the ability of loading 10 terabytes (TB) of data in an hour, twice as fast as Oracle Corp.’s (ORCL) Exadata systems and five times as fast as systems from Netezza and Teradata Corp. (TDC) and at a much lower cost.
The High Capacity DCA and the High Performance DCA are enhancements to the original DCA product line.
The High Capacity DCA is capable of processing petabyte-levels of data by utilizing less space and power. High Capacity DCA is the lowest cost-per-unit data warehouse model for businesses that require detailed analysis of huge amounts of data on a regular basis.
The High Performance DCA allows faster data loading and scanning. Based on solid-state drive storage, the system allows a large number of concurrent users. This is particularly effective for businesses that analyze time sensitive data.
The Data Integration Accelerator tool solves the challenges of data loading in a parallel and scalable model.
All the three new additions use the latest version of Greenplum Database 4.1. The upgraded version simplifies data integration and extends the range of analytics functions, thereby improving client and application connectivity. Moreover, the database also expands workload management and system health monitoring capabilities.
In separate news, business analytics solution provider, SAS, introduced SAS High Performance Analytics on EMC Greenplum Data Computing Appliance. This new offering from SAS will help customers perform analytical operations on all types of data within a very short span of time.
The SAS High-Performance Analytics is part of the SAS High-Performance Computing portfolio, and will be generally available on the EMC Greenplum Data Computing Appliance in the fourth quarter of 2011.
We believe the release of these new systems will boost DCA’s performance and expand EMC’s customer base, resulting in higher revenues in the upcoming quarters and a stronger competitive position versus Oracle’s Exadata database machine product.
Recommendation
We believe that EMC will benefit in the longer term from improved storage demand, strategic alliances, increased business execution, favorable new product cycle and cloud computing initiatives, as well as stringent cost reduction efforts.
However, pricing pressure and increasing competition in the data analytics field from Oracle, International Business Machines Corp. (IBM) and Teradata can hurt profitability going forward.
We maintain our Neutral rating over the long term (6-12 months). Currently we have a Zacks #2 Rank for EMC, which implies a Buy rating on a short-term basis.
EMC CORP -MASS (EMC): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
TERADATA CORP (TDC): Free Stock Analysis Report
Zacks Investment Research
