Analyst Raymond James has created a flap over his idea that now is the perfect time for HP to buy EMC.
James believes an acquisition deal between HP and EMC is a “distinct possibility” as HP inches closer to its company split date in November. The two companies agreed, at least once before, and had more than a year’s worth of merger talks before giving up, mostly on the matter of price.
Channel partners of both companies said the deal makes sense and would be beneficial to them and it is looking like other analysts agree.
Such a deal would improve HP’s cloud portfolio with VMware and Virtustream services, while EMC and Pivotal would boost the converged infrastructure and analytics side of the portfolio. HP provide some good mobile tech.
HP is splitting the enterprise divisions from the PC and print side of the business, and is certain to have that done by Christmas. HP CEO Meg Whitman has indicated further acquisitions and so it is possible that EMC is on the table.
HP Enterprise of the new HP – will be a lot more aligned with the current EMC and VMW businesses in terms of end-market focus.
A united company is worth $2 billion more. HP would kill off its 3Par storage over time, and EMC would shelve its Content Management in favour of HP’s Autonomy.
EMC has confirmed Kevin Sparks is to replace Russell Poole as director of alliances and channels for the UK and Ireland.
Poole has been doing rather well for himself climbing the greasy pole within EMC. He replaced Terry Beale as EMC’s head of channel just last August has been promoted to the position of senior director, enterprise sales for EMEA.
Sparks joined EMC five years ago and was most recently the vendor’s cloud and service provider sales manager. He has 22 years of experience in technology sales and marketing, including leadership roles at Ericsson and BT, before joining EMC.
He has to evolve EMC’s channel business in the UK&I which has been getting better of late and might be showing signs of opposable thumbs.
EMC has been trying to transform its relationships with the channel and distribution businesses over the last few years. Sparks’ will “work closely with the partner community to help them find additional value from their relationship with EMC” which we guess means a generous drinks cabinet for thirsty channel partners.
The market for customised backup appliances reached $1 billion worldwide in the fourth quarter of last year.
This market represents standalone disk products that use software, disk arrays, server engines, and more specifically data coming from backup software.
IDC said that the market for this kind of kit rose by four percent in 2014 and generated revenues of $3.26 billion.
Annual capacity in 2014 rose by 42.8 percent compared to 2013 to a staggering 2.68 exabytes.
Liz Conner, a research manager at IDC, said reasons for the rise in revenues included better software, data tiering, file sharing, data analytics and more investment in integrated systems.
In the fourth quarter, top of the storage pile was EMC with 63.8 percent market share, dwarfing the other players Symantec (11.5%), IBM (6.7%), HP (4%) and Quantum (2.3%).
VCE, which specialises in converged infrastructure, said it has added a raft of software and hardware products aimed at customers looking to move to a hybrid cloud model.
The company said its Vscale architecture offers speed and simplicity for data centres. The VxBlock Systems use Cisco Application Centric Infrastructure or VMare NSX for software defined networking.
Its VCE Vision Intelligent Operations 3.0 is an update to its management software with unified intelligence across many VCE converged infrastructure systems.
It supplemented these announcements with VCE technology extensions – pre-tested and pre-validate hardware – the announcement means that businesses can add storage and computing resources including EMC and Cisco products.
Further VCE said that it has launched the Federation Enterprise Hybrid Cloud, making it easier to build scalable systems.
VCE said it is now shipping the Vblock System 540 and the System 740 in volume. These products were announced last October.
IDC said that the storage market ended well. In the last quarter, worldwide enterprise storage systems revenue grew 7.2 percent year on year to amount to close to $10.6 billion.
And capacity shipments rose by 43.7 percent compared to the same quarter the previous year to represent 99.2 exabytes.
Eric Sheppard, a research director at IDC, said spending on enterprise storage grew in most markets worldwide with factors including demand for midrange systems using flash memory and systems designed for hyper scale data centres.
EMC was the top dog in fourth quarter, with a 22.2 percent market share. That company was followed by HP (13.8%), Dell (9%), IBM (9%) and Netapp (7.2%).
Guy Churchward, head of EMC’s $20-billion core technologies division, has warned that small data is going to cause even bigger headaches than the big stuff.
Taking to the Economic Times Churchward said that data challenges for the Internet of Things or driverless cars were huge,
He said that millions of driverless cars, and billions of other internetconnected devices will not be Big Data. “What you have is not big data, it is actually `small data’ – because what it is, is billions and billions of small data objects.”
EMC expects IoT to create a sprawl of billions of autonomous devices, which will create security, storage and management nightmares in future.
Churchward warned that “small data sprawl” will take the challenges of Big Data and make them 100x more difficult.
Security, storage, management and applications would be completely different in a world filled with billions of devices, each of which will have its own big data. None of the currently available tools and applications would work in such environments.
Part of EMC’s over $2.3-billion research and development budget is being used to address this `small data’ problem but the company thinks that it will take between three to five years to start bearing fruit.
The generation of vast amounts of data continues to fuel the disk storage systems revenue in the third quarter.
With revenues of $8.8 billion, up 5.1 percent from the same period last year, 25 exabytes shipped in the quarter, said IDC. Capacity shipments soared by 42 percent during the quarter, compared to Q3 2013.
IDC said sub $100K external array revenues grew by over six percent during the quarter, but shipments ODMs (original design manufacturers) directly to hyperscale datacentres showed positive growth.
EMC remains at the top spot for the quarter, followed by HP, Dell, IBM and Netapp.
ODM direct sales accounted for 24 percent of the market however, outstripping the traditional vendors. And this trend is continuing, as we’ve reported previously, with ODMs also shipping more and more servers directly and bypassing the brand names,
Rob Crooke, VP & GM of Intel’s Non-Volatile Memory (NVM) Solutions Group was last up in the company’s day long Investor Meeting today in Santa Clara.
Though last, he had the most newsworthy announcement about the company’s future memory intentions.
Intel announced it is back in the memory business – 3D NAND-Flash that is (mass production in-house is conditional though).
Crookes’ revelation ends any rumination on Intel-Micron Flash Technologies 3D Flash development – it also includes SK Hynix when the device goes into production 2Q 2015. Evidently those who have been nice have early sample devices according to sources.
- 4G hole array 32 layers deep | (216 x 216)(Array) x 25(Layers) x 2(MLC) = 256 Gbits
- 1TB in 2 mm package
- SSDs: 10TB and up planned
- Production 2H 2015 – IMFT (Lehi, Utah facility mentioned) & SK Hynix
- Intel can also produce internally
- Replacement of HDD with SSD in all PC and Mobile devices
Crooke allowed that the devices will not use Intel’s cutting edge 14nm technology but a slightly relaxed geometry – Micron is on record at 16nm geometries for 3D NAND. The openly known fact that prevaricating about Flash Geometries may hold sway – a hefty dose of caveat emptor is recommended.
The announcement coincides with reports that Intel and Micron are involved in a project with EMC2-DSSD – an effort to produce the first NAND-Flash In-Memory Database appliance. The proffered memory type may be a custom type expressly tailored for the application and may be produced in-house by Intel – more on this as roll-out time nears.
The maker of expensive printer ink, HP has ended merger talks with EMC after months of useless negotiations.
Reuters reported that its deep throats in HP said hopes to merge two of the tech industry’s largest enterprise-oriented firms had been dashed.
Pressure is building on EMC to do some spinning off in an attempt to unlock shareholder value, become more agile, and capitalise on faster-growing businesses.
Executives from the two companies were still trying to hammer out a deal as recently as last week, but talks bogged down on price. We guess EMC really could not believe that printer ink had the same value as gold.
HP suspended its stock buyback program ahead of its November 25 earnings because the company said it is in possession of material non-public information. Chief Financial Officer Cathie Lesjak noted on a conference call that the non-public information pertains to a possible acquisition.
It is not clear what the two were thinking of merging. A straight-up merger of the two companies would have created one of the industry’s largest providers of data storage, and created a computing giant with deep penetration in the business of providing computing hardware and services to corporations. However last week HP announced its plan to split off into HP Enterprises, a tech infrastructure, software and services business, and HP which will play in the PC and printer markets.
Elliot Management, which owns 2.2 percent of EMC, has been vocal about wanting EMC to merge or spin off some of its assets, such as software subsidiary VMWare. EMC has said that it wants its company to stay together.
Activist investor Elliott Management is trying to get data storage products outfit EMC to spin off its VMware virtualization software unit or merge with someone else.
The outfit penned a 13-page letter to the company’s board which was signed by portfolio manager Jesse Cohn and warned that EMC’s structure of combining several businesses obscured its enormous value.
Elliott, which has $25 billion under management, owns a 2.2 percent stake in EMC and said it was writing a letter to help inform EMC’s board on its “current review process” of how to maximize long-term value at EMC.
EMC’s “federation strategy” comprises a core data-storage unit, a virtualization software unit VMware, enterprise security business RSA and cloud-computing software maker Pivotal.
EMC held merger talks with HP recently that broke down. Elliott said the acquisition interest in EMC’s assets on the part of several large companies that make strategic sense.
So far, EMC has publicly said it plans to keep its company together. But pressure is building as other technology companies recently have been spinning off operations in an attempt to become more agile and capitalize on faster-growing businesses.
Once Again, HP has decided to evolve the PC and Printer operations as a distinct and separate corporate entity.
HP came close to selling both divisions during the short reign of Leo Apotheker. After the discovery of a massive over payment for Autonomy Corp. HP’s Board decided Leo had to go and PC & Printers had to stay.
Slipping to the number two position behind Lenovo, HP has decided to spin the combined organization into a separate entity under the aegis of Dion Weisler as CEO (Weisler is an exec in the PC and printer operation currently). Patricia Russo will be installed as the Enterprise company’s new Chairman (former lead independent director). Meg Whitman will remain CEO of the Enterprise company and oversee corporate guidance of the PC/Printer entity as Chairman.
What difference does this make? Reporting structures loaded with changes in culpability mostly, freeing Whitman up for minding the Enterprise store and:
- Aligns Weisler for the fall when and if the PC/Printers Division comes in under plan.
- Allows time to position the PC/Printer Group for a potential sale.
HP has been struggling in their efforts at penetrating the Cloud with their Moonshot technology – Whitman may find the ice a little thin for skating this Winter and into next Spring.
HP’s merger discussions with EMC recently ended. We’re left wondering if what we are now seeing is part of a “Plan B” by HP’s Board of Directors…,
In a merger that would have ranked alongside that of Kim Kardashian and Kris Humphries, EMC was seriously considering tying the knot with the maker of expensive printer ink, HP.
A Wall Street Journal report suggested that EMC and HP have investigated a potential merger deal that would have created a super-vendor worth close to $130 billion.
The deal was approached as a “merger of equals” and was in discussion over the past year. HP CEO Meg Whitman would have become CEO of the combined company, while EMC’s Joe Tucci would have been President.
Fortunately, the deal fell apart because both companies had concerns over whether their respective shareholders would have approved it.
That is not to say it was completely bad. HP would have gained EMC’s storage expertise and domination over the mid-range storage sector. HP’s forays into cloud computing have shown the strategy of a chicken with its head cut off.
EMC has some good technology in cloud computing, commodity hardware and modular approaches to IT, but these are successful at the expense of its highly lucrative core businesses.Its VMware subsidiary is doing well, but it is not making enough for the outfit to be a truly happy bunny.
What the pair clearly forgot was that they compete for business; integrating the two operations would have been a nightmare for managers, but great for accountants.
Fortunately, the idea died a death before anyone heard about it.
Revenues from the worldwide storage software market rose by 6.3 percent in the second quarter of this year, according to figures from IDC.
It said revenues during Q2 2014 came to nearly $3.8 billion.
The leaders in the pack were EMC, IBM and Symantec which had markt shares of 25.9 percent, 16 percent and 13.3 percent respectively.
Data protection and recovery software showed bigger growth, up 10.2 percent in the quarter, compared to the same quarter in 2013. Revenues for those totalled $1.45 billion. storage infrastructure sales amounted to $448 million. Storage and device management software sales rose by 4.1 percent to stand at $708 million.
Eric Sheppard, research director of storage software at IDC said there was broad growth over most markets.
”Sales of data protection and recovery software accounted for almost 60 percent of the spending during the quarter, driven by a market wide move to improve application resiliency, continued uptake in appliance based offering and healthy attach rates within the integrated systems market”, he said.
While still worth $5.9 billion, external storage systems revenue fell by 1.4 percent in the second quarter of this year, according to IDC.
The market research company said a decline in high end systems was coupled with a drop in midrange storage sales too.
While EMC stayed in first place, its market share fell in the quarter from 31.2 percent the year before to 30.1 percent. NetApp and IBM tied in second place but they also saw drops in their sale.
HP appears to have profited from their market share drop, as it moved to fourth place, while Dell and Hitachi tied for the fifth position.
Moving from external disk storage to the total storage market the top four vendors were EMC, HP, IBM and Dell.
Lenovo has chosen Arrow to distribute its storage and server products in the UK and Ireland.
The move means that Arrow will aim to sell Lenovo’s server and storage products to SMEs through the channel.
Nick Thurlow, who runs Arrow’s enterprise business said that the partnership makes commercial sense ofr his company. “Arrow looks forward to working with Lenovo as it expands its offerings for the next generation data centre.”
The vendors known as Lenovo and EMC chipped in. Darren Phelps, Lenovo channel man for the UK and Ireland said Arrow has experience in distributing large and small scale projects directly through channel programmes.
EMC channel man Terry Beale said that Lenovo’s servers have been certified within the EMC and VSPEX reference architecture.
What is means is that Arrow will distribute Lenovos entire server and storage range.