September 30, 2013, 9:39 AM — EMC came early to enterprise flash storage, shipping its first product in 2008, and it's still increasing its investment in the hot technology. More than half its new R&D expenditures are going into flash, and just nine months ago the company formed a division dedicated to it. EMC sees a long-term move toward all-flash data centers and wants to make sure its efforts have enough "oxygen" within the company, says Zahid Hussain, SVP and general manager of EMC's Flash Products Division.
- Company: EMC Corp.
- Headquarters: Hopkinton, Mass.
- Employees: 60,000
- 2012 Revenue: $21.7 billion
- CEO: Joe Tucci
- What They Do:Ã'Â EMC supplies a wide range of storage, big data and cloud computing products, as well as Asecurity offerings through its RSA division. It is the majority owner of VMware, and last year the company acquired agile Adevelopment service provider Pivotal Labs.
Last year, EMC went beyond hybrid flash-and-disk arrays by acquiring XtremIO, a startup developing all-flash systems. The resulting products are set to ship later this year. The company has also started to pursue server-based flash, which gives applications the closest and fastest access to data. With its ScaleIO acquisition earlier this year, EMC plans to let enterprises pool flash assets from many servers into a primary storage tier.
The Changing Face of Enterprise Storage
EMC probably has the broadest flash lineup of the established storage vendors, including IBM, Hewlett-Packard, NetApp and Dell, says Taneja Group analyst Arun Taneja. But data storage is starting to merge with computing and other areas where EMC hasn't been a major player. When flash resides in servers and caches in various parts of the data center, coordinating all the pieces requires computer expertise, he says.
"Storage guys have to understand applications all the way up, and storage guys have to understand what's happening in VMware or Hyper-V, because if they don't, then the applications just suffer," Taneja says. "All the boundaries are gone."
The danger to EMC is that vendors such as IBM or HP could use their data center presence to gain the upper hand, Taneja says.
Another hazard is that EMC's server-based caching could eat into the company's own sales of fast, high-end spinning disks, says analyst Mark Peters of Enterprise Strategy Group. But EMC isn't afraid of this, he says. "I don't know whether they embrace change, but they certainly manage it very well," Peters says.
A Strong Player in a Flash
EMC's new technology and long track record as an IT vendor could combine to make it a strong player in the flash storage market.