The Data Storage Market: What Does It Mean for EMC and Its Peers?
In May 2015, EMC announced its $1.2 billion acquisition of Virtustream, a company that operates its own data centers offering cloud services to customers.
Legacy Storage Vendors Hit by Disruptive Innovation
Legacy storage vendors like EMC (EMC), IBM (IBM), and NetApp (NTAP) are witnessing a decline in their market share.
EMC’s Cash-To-Debt Ratio Is 1x: How Does It Compare?
Cash-to-debt ratio measures the financial strength of a company. EMC’s cash-to-debt ratio in 2Q15 is 1x, which is lower than the industry median of 1.4x.
Could a Competing Bid Back up the Dell-EMC Merger?
In the Dell-EMC merger, EMC has been pushed into a sale process by Elliott Management, which had seats on the Board of Directors.
Sizing up the EMC-Dell Merger: A Quick Background Check
Elliott was unhappy with EMC’s performance and wanted them to spin off their holding in VM Ware to shareholders.
Behind NetApp’s Focus on Strategic Solutions
NetApp CEO George Kurian has stated that the firm will focus on strategic solutions “that represent our pivot to the growth segments of the market.”
Western Digital’s Offer for SanDisk Includes 15% Premium
To acquire SanDisk, Western Digital has offered SanDisk shareholders $86.50 per share. This is approximately 15% premium to SanDisk’s closing share price on October 20, 2015.
Shareholder Activism at Work with Oracle-NetSuite Deal
In accordance with its minimum tender condition, the majority of NetSuite stakeholders must vote in favor of the deal to make it happen.
Hewlett-Packard’s Enterprise Group business banks on storage and server
Hewlett-Packard’s Enterprise Group (EG) revenue was up 1% year over year to $6.9 billion for fiscal first quarter 2014, but operating income for this group declined by 6% to just over $1 billion. In fiscal 2013, EG revenues declined 5.4% to $28.2 billion. EG offers a broad portfolio of enterprise technology infrastructure solutions such as […]
Does EMC Stock Hold Potential for Investors?
In its fiscal 1Q15 earnings release, EMC lowered its expectations. Now, it expects its revenue and EPS to be $25.7 billion and $1.91, respectively.
How Did HPE’s Software and Financial Services Segments Perform?
In fiscal 2Q16, the revenue from Hewlett-Packard Enterprise’s (HPE) software business fell 13% YoY (year-over-year) to $774 million.
EMC-Dell Merger Cleared: What Does This Mean for the Competition?
EMC and Dell announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for the companies’ merger.
Symantec: Information Management Didn’t Grow in Fiscal 1Q16
In fiscal 1Q16, Symantec’s Information Management—Veritas—posted revenue of $587 million. This was a fall of 10% on YoY (year-over-year) basis.
What Are EMC’s Other Reasons for Considering a Sell-Off?
Elliott Management has pressured EMC to change its federal structure. However, the firm has agreed to a “standstill agreement” until September 2015.
Parsing the EMC-Dell Material Adverse Effect Clause: Part 2
If a major customer of EMC walks because they don’t want to deal with Dell, that isn’t an MAE. Also, something that affects the whole tech industry or the IT storage industry would not be an MAE.
Microsoft releases 1Q15 earnings
On October 23, 2014, Microsoft released its 1Q15 earnings. Although earnings per share (or EPS) did beat analysts’ expectations, it declined on a year-over-year basis.
How Will the VMware-EMC Cloud Joint Venture Fare?
VMware and EMC will have an equal stake in Virtustream, but financial results of the new company will be consolidated into VMware’s results.
SAP used the acquisitions route to join the growing cloud space
To keep its momentum, SAP has increased its rate of acquisitions. It’s strategically shifting most of its staple applications on the cloud. SAP has a strategy to address its market. The market is expected to grow to $230 billion by 2015 through innovations and strategic acquisitions.
Why acquisitions are important in EMC’s business strategy
EMC has completed and integrated more than 70 acquisitions since 2003. Through VMware (VMW), it entered the virtualization software market. Legato led to the storage management software market. Documentum led to content management. Finally, RSA and Greenplum let EMC venture into the data security and “big data” space, respectively.
Elliott Management takes activist stake in Informatica
Informatica stock surged 6.8% to $41.04 on news of Elliott’s activist stake, bringing its market capitalization to around $4.5 billion.
Why Third Point Increased Its Position in Salesforce
Salesforce constitutes ~2.4% of the Third Point LLC portfolio, which the hedge fund acquired at an average price of $79.89 per share.
Is LifeLock’s Buyout by Symantec a Win for Elliott Management?
Elliott Management’s expertise in technology sector Earlier in this series, we discussed how LifeLock’s acquisition could enhance Symantec’s (SYMC) growth prospects. Let’s explore the role of hedge fund management company Elliott Management. The tech sector seems to be Elliott Management’s strength. In Elliott Management’s words, “Within the technology sector, we have made approximately three dozen […]
How Will Sanovi Enhance IBM’s Disaster Recovery Strategy?
In June 2016, IBM was positioned as a leader in Gartner’s Magic Quadrant for DRaaS (disaster recovery as a service) for the second straight year.
This Area of Storage Is Booming for NetApp
NetApp has stated that flash storage plays a key role in the IT transformation of businesses. The adoption of flash storage has increased in past quarters.
A Look at VMware’s Newest Offering, Cross-Cloud Architecture
VMware’s Cross-Cloud Architecture provides “a common operating environment” for public and private clouds.
How the Dell-EMC Deal May Affect VMware’s Future
For the past year, uncertainty has been looming over VMware (VMW), primarily due to the impending Dell-EMC deal. EMC has an 80% stake and 97% of the voting rights in VMware.
NetApp’s Share in All-Flash Storage Rises Significantly
Storage company NetApp (NTAP) has often stated that flash plays a key role in the IT (information technology) transformation of companies.
How Will Dell Benefit from the Merger with EMC?
Last year, Dell said it anticipates roughly $2 billion in revenue synergies from the EMC transaction.
Shareholders Approve Dell-EMC Merger
On June 19, 2016, EMC Corporation (EMC) announced that its shareholders approved the merger agreement among Denali Holding, Dell, Universal Acquisition Co., and EMC.
Why Cisco Shares Fell after Brexit News
On Friday, technology (XLK) heavyweight Cisco (CSCO) fell 5% on news of the United Kingdom leaving the European (FEP)(EFA) Union.
What Are the Key Drivers for EMC’s Cyber Security Products?
EMC offers a comprehensive portfolio of solutions for cloud-to-cloud as well and on premise-to-cloud data protection solutions.
Why Nokia and Ericsson Stocks Fell on Brexit News
On Friday, Nokia (NOK) fell 8.6% while Ericsson (ERIC) fell 7.3% on news of the United Kingdom leaving the European Union (FEP)(EFA).
Why Hewlett-Packard Enterprise Fell on Brexit News
On Friday, Hewlett-Packard Enterprise (HPE) shares fell 7.6% on news of the United Kingdom deciding to leave the European (FEP)(EFA) Union—the Brexit.
Why Is Symantec Buying Blue Coat Systems?
On June 12, 2016, Symantec (SYMC) announced that it would acquire Blue Coat Systems for $4.7 billion in order to expand its offerings and position in the cybersecurity space.
Dell Issued the Most High-Grade Bonds Last Week
Dell Corporation issued Baa3/BBB- rated high-grade bonds worth $20.0 billion via six parts on May 17.
Defying 2016 Outlook, VMware’s 1Q16 Results Beat Analyst Estimates
VMware reported revenues of $1.6 billion and non-GAAP EPS of $0.86 in 1Q16, which beat analyst expectations.
What’s Cisco Really Targeting with Its CliQr Acquisition?
Cisco’s latest acquisition of CliQr has solidified its position in cloud orchestration, which coordinates private and public clouds.
What Factors Drove VMware’s 2015 Growth?
On a YoY (year-over-year) basis, VMW’s fiscal 4Q15 and 2015 revenues grew by 10% and 9%, respectively.
Cisco Partners with Philips to Sell ‘Smart’ Lights
Cisco (CSCO) is looking to increase market penetration in the IoT domain. In December 2015, it announced its partnership with Koninklijke Philips NV (PHG).
The Macro Trends that Affect the Global Semiconductor Industry
Consumer trends directly impact the semiconductor industry. For instance, consumers shifted from PC to mobile, negatively impacting Intel’s revenue.
Pure Storage Shares Rose 10% after the Fiscal 3Q16 Earnings
Pure Storage beat analysts’ revenue estimate by a large number. This sent the company’s shares as high as $17.10 on December 4, 2015.
Hewlett Packard Enterprise’s Revenues Continue to Fall
In fiscal 4Q15, Hewlett Packard Enterprise (HPE) revenue fell 4% YoY to $14.1 billion, above analysts’ expectation of $13.5 billion.
Hewlett-Packard’s 4Q15 Earnings, the Last as a Combined Company
Hewlett-Packard released its fiscal 4Q15 earnings on November 24, 2015. It’s the last time it will report earnings as a combined company of HPQ and HPE.
Symantec Accelerated Its Share Buyback Program in Fiscal 2Q16
In fiscal 2Q16, Symantec—as expected with the $8 billion sale of Veritas—announced the buyback of $500 million in shares.
Factors that Can Drive Cisco Systems’ Growth
Of its $12.7 billion revenue reported in fiscal 1Q16, Cisco derived 78% of its revenue, or $9.84 billion, from its wide product portfolio and 22%, or $2.84 billion, from services.
Will Cisco Please Investors with Its Earnings Results?
Cisco (CSCO) could beat all of the earnings estimates and provide strong fiscal 1Q16 results. However, its peers in the hardware space reported weaker results.
Why Did Hewlett-Packard Split Its Business?
Hewlett-Packard split into HP Inc. and Hewlett Packard Enterprise. On the first day of trading, the companies’ shares moved in opposite directions.
What Strategies Will Intel Adopt to Boost Future Growth?
As of September 26, Intel had cash reserves of $20.8 billion, up 34% YoY (year-over-year). This is because the company slowed its share buyback program.
Investors Eagerly Await Apple’s 4Q15 Earnings
On October 27, 2015, Apple will announce its 4Q15 results, and analysts are expecting revenues of $51.1 billion with earnings per share of $1.88.
The EMC-Dell Merger: The Basics of VMware
As part of the EMC-Dell merger, a new class of tracking stock will be issued to EMC shareholders that will track the performance of EMC’s VMware holding.
What Synergies Does the Dell-EMC Merger Bring?
The revenue synergies of the Dell-EMC merger are likely to be the result of EMC’s converged infrastructure making use of Dell servers and networking products.
Dell’s EMC Buyout the Industry’s Biggest—a New Trend?
Dell’s offer to buy EMC is the biggest to happen in the technology sector to date. The largest deal previously was HP’s acquisition of Compaq in 2001.
Technology Sector’s Largest-Ever Deal: Dell Takes Over EMC
On Monday, October 12, 2015, Dell, along with equity firm Silver Lake, acquired data storage player EMC for a valuation totaling more than $67 billion.
How Dell Came to Consider Acquiring EMC
With the advent of SMAC, there’s been a big shift in how data is stored and accessed. Dell’s acquisition of EMC reflects this shift to mobile and cloud.
Dell’s Proposed Acquisition of EMC for $67 billion
On October 12, 2015, Dell and its investment arm, Silver Lake Partners, announced the acquisition of EMC, including VMware (VMW), for $67 billion.
Elliott Management’s Strong Role in Dell’s Buyout of EMC
Dell’s acquisition of EMC for $67 billion is the largest deal in the technology sector to date—and an equally big deal in the shareholder activism space.
Tech Stocks Like Intel Rallied over the Last Few Days
Intel’s (INTC) stock rose by ~9% over the last week. So, are investors expecting strong earnings for Intel? The company will announce its earnings on October 13.
Enterprise Storage Moves to Software-Defined Storage
Software-defined storage separates storage hardware from the software that manages the storage infrastructure.
Third Platform Is Changing the IT Landscape
The benefits provided by the third platform will put early adopters ahead of competition.
HP’s Revenue Growth Continues to Flag in 3Q15
In 3Q15, HP wasn’t able to beat analyst expectations on for revenues, but the company did manage to beat analyst expectations by $.03 per share for its EPS.
Organic Growth Boosts Red Hat’s Performance
Red Hat has a market cap of $13.34 billion. Its YTD performance is stable. After the earnings report for 2Q16, Red Hat stock rose by 2.34% to close at $72.72 per share.
A Wave of Startups Has Hit the Data Storage Space
Enterprise storage startups raised $1.62 billion in funding in 2014, up 25% year-over-year. Between 2010 and 1H15, venture capitalists invested over $6 billion into 96 storage startups.
Data Storage Systems Overview
We live in the “Information Age,” where a huge amount of data is generated every second and storage systems are needed to store this data.
HP Surpasses Cisco Systems in Cloud Infrastructure Space
Cisco, a network equipment manufacturer, has been a leader in the cloud infrastructure space since 2013. In 2Q15, HP managed for the first time to dethrone Cisco from its leadership position.
Symantec Increased Its Share Buyback Program in Fiscal 1Q16
In its fiscal 1Q16 earnings release, Symantec announced a $1.5 billion increase in its share buyback program. Symantec paid dividends worth $103 million.
Symantec Invests in DLP and End Protection
According to Gartner, the DLP market grew 15.80% on a YoY (year-over-year) basis. The healthy growth in this segment was credited to Symantec.
NetBackup Software and Appliance Grow in Fiscal 1Q16
Growth in the NetBackup appliance market has ensured a rise in Symantec’s PBBA (purpose-built backup appliance) revenue.
Symantec’s Revenue Continued to Fall in Fiscal 1Q16
On August 11, Symantec (SYMC) announced its fiscal 1Q16 results. It posted revenue and non-GAAP EPS of $1.5 billion and $0.40 per share, respectively.
Symantec Finally Finds Buyer for Veritas
On August 11, 2015, Symantec (SYMC) made headlines when The Carlyle Group announced it has agreed to acquire Veritas, Symantec’s information management and data storage business.
Why Did Cisco Shut Down Its Data Storage Business?
Cisco acquired Whiptail—a data storage player—in 2013 for $415 million in order to enter into this market. Cisco plans to shut down its data storage business.
Can SanDisk Continue Upward Stock Movement in 2015?
Although SanDisk (SNDK) has declared better-than-estimated 2Q15 results, the company’s revenue fell 24% year-over-year and 7% quarter-over-quarter.
Intel’s Earnings Report a Harbinger for the Semiconductor Sector
Intel has delivered YTD (year-to-date) returns of -12.2% as of July 14, 2015, and has fallen by 6.4% in the trailing one-month period.
Dave Donatelli Will Spearhead Oracle’s Converged Infrastructure
On June 16, 2015, Oracle (ORCL) announced that Dave Donatelli is the executive vice president of Converged Infrastructure. He joined Oracle in March 2015.
In 2015, Technology Sector Clinches Biggest M&A Deals since 2000
The $143.4 billion global technology sector M&A volume in 2015 YTD is up 30% from $110.2 billion in 2014 YTD. The tech sector M&A volume stood at $249.1 billion in 2000, giving 2015 the second highest YTD volume on record.
Why Virtustream Is a Big Step for EMC in the Cloud Space
Within the span of one year, Virtustream is EMC’s second acquisition in the cloud space.
NetBackup Ensured Increase in Symantec Revenues in 2014
Growth in the NetBackup appliance market has ensured an increase in Symantec’s PBBA revenues. They were $417.5 million in 2014 compared to $359.4 million in 2013.
What Factors Led to 4Q15 Growth in Symantec’s Veritas Segment?
Veritas was the only one to report growth in 4Q15. Veritas’s non-GAAP revenues grew to $2.56 billion. It was a meager growth of 1% on a year-over-year basis.
Analyzing the Subsectors in the Technology Select Sector ETF
The Technology Hardware & Storage subsector underperformed the most since the beginning of January 2015. The stocks have primarily generated negative returns.
What Prompted HP to Sell Its Majority Stake in H3C in May?
Through the sale of H3C, HP became one of the first prominent US technology companies to give control to native Chinese owners.
Symantec’s Licensing Revenues Continue Growth Trend in 4Q15
In fiscal 4Q15, Symantec’s (SYMC) licensing non-GAAP revenue grew 2% to $200 million. Licensing revenues saw an increase of 5% on a year-over-year basis.
Symantec Misses Wall Street Expectations for Fiscal 4Q15
On May 14, 2015, Symantec (SYMC) declared its fiscal 4Q15 and 2015 earnings results. It missed 4Q15 earnings estimates, and the share price went down 3.5%.
Micron Technology: Impacted by Low Demand and Currency Pressure
Micron is a global leader in advanced semiconductor systems. Since the beginning of 2015, its share price fell from $34.75 to $26.31—a 23.19% decline in investments.
IBM Ranked Top Vendor in All-Flash Storage Array Space
In 2014, IBM sold over 2,100 flash storage systems, which translates into 62 PB of capacity. IBM provides an economical storage option that save space, energy, and IT administration costs.
EMC’s Information Infrastructure’s Negative Growth in 1Q15
Only EMC’s (EMC) Information Infrastructure segment posted negative growth. Its revenue stood at $4.05 billion—a decline of 1% on a YoY basis.
Reports that Symantec May Sell Veritas Boost Stock
Veritas is rumored to account for half of Symantec’s market cap. Its possible sale may be a substitute plan for the company’s earlier notion to split.
Why Did Cisco Partner with IBM?
Cisco partners with IBM to leverage the fast-growing integrated infrastructure market. Past partnerships for Cisco have been successful.
Cisco: A Look at the Company’s Key Strengths and Weaknesses
Cisco (CSCO) has been through a number of ups and downs since its inception in 1984. John Chambers has been the company’s CEO since 1995.
Key overview of Symantec’s 2Q15 earnings
Symantec’s reported 2Q15 earnings were in line with analysts’ estimates. However, the company did beat estimates on the profit front.
Where is EMC in today’s rapidly evolving big data landscape?
EMC’s elastic cloud storage has shown increased adoption due to the shift towards the third platform, which combines social, mobile, and big data or analytics.
EMC adds Maginatics to its string of cloud acquisitions
Maginatics, a provider of data protection across clouds, is EMC’s latest acquisition in the cloud space.
EMC’s Spanning launched full backup solutions for MS Office 365
Spanning Backup for Office 365 provides automated daily and on-demand backups of email, data, and contracts from any device.
EMC acquires Spanning to increase its focus in data security
Spanning provides cloud-to-cloud data protection technology and offers a backup service for cloud applications.
Elliott adds to position in Brazilian telecom Oi
In October, Oi stated that it intends to participate in the consolidation of telecom industry in Brazil and to reduce its debt via asset sales.
EMC expands its cloud portfolio with Cloudscaling acquisition
In October 2014, EMC (EMC) announced the completion of its Cloudscaling acquisition.
Is EMC stock a good investment?
EMC’s management expects FY14 revenues to be $24.5 billion and its non-GAAP operating margin to be around 24%.
Why EMC is targeting converged infrastructure
Converged infrastructure simplifies hardware and software management, thus speeding up the deployment of infrastructure for private clouds.
Why the spin-offs of VMware and Pivotal will hamper EMC’s growth
EMC estimates the total addressable market for Pivotal will be around $20 billion by 2017.
EMC strategically acquired stake in VCE to focus on hybrid cloud
Recent acquisitions have enabled EMC to offer comprehensive cloud backup and storage solutions, thus enhancing its presence in the hybrid cloud space.
How EMC’s Pivotal fared in 3Q14
In early 2014, EMC launched Pivotal Big Data Suite, which unifies different data technologies and licenses them together.
EMC launched Enterprise Hybrid Cloud Solution
The EMC Enterprise Hybrid Cloud solution is based on flexible reference architecture, VSPEX, and Vblock Converged Infrastructure.