EMC 2004 Annual Report Download - page 20

Table of Contents
Revenues
The following table presents revenue by our segments:
Percentage Change
2004 2003 2002 2004 vs 2003 2003 vs 2002
Information storage products $ 4,979.9 $ 4,206.4 $ 3,762.0 18% 12%
Information storage and management services 1,530.4 1,262.5 1,000.0 21 26
EMC Software Group products and services 1,437.4 668.4 534.8 115 25
VMware products and services 218.2 – – * –
Other businesses 63.6 99.5 141.6 (36) (30)
Total revenues $ 8,229.5 $ 6,236.8 $ 5,438.4 32% 15%
* Not Measurable
Information storage products revenues include information storage systems and information storage software revenues. Information storage systems
revenues were $3,871.0, $3,314.7 and $2,985.3 in 2004, 2003 and 2002, respectively, representing increases of 17% in 2004 and 11% in 2003. The increases
in 2004 and 2003 were due to greater demand for these products attributable to wider acceptance of information lifecycle management-based solutions, a
broadened product portfolio, increased demand for IT infrastructure and new and enhanced distribution channels. Information storage software revenues were
$1,108.9, $891.7 and $776.7 in 2004, 2003 and 2002, respectively, representing increases of 24% in 2004 and 15% in 2003. Information storage software
revenues consist of revenues from platform-based software whose operation generally controls and enables functions that take place within an EMC storage
system. The increases in 2004 and 2003 in information storage software revenues were attributable to an expanded product offering, a greater demand for
software to manage increasingly complex high-end and midrange networked storage environments and new and enhanced distribution channels.
Information storage and management services revenues include software and hardware maintenance and professional services revenues. Software and
hardware maintenance accounted for 51.1%, 50.5% and 46.2% of total information storage and management services revenues in 2004, 2003 and 2002,
respectively. Professional services accounted for 48.9%, 49.5% and 53.8% of total information storage and management services revenues in 2004, 2003 and
2002, respectively. Information storage and management services revenues increased in 2004 and 2003 due to greater demand for both software and hardware
maintenance contracts associated with increases in sales of information storage products. Additionally, increased demand for professional services, largely to
support and implement information lifecycle management-based solutions, contributed to the increases in 2004 and 2003.
The EMC Software Group products and services segment was established in July 2004. The EMC Software Group products and services revenues include
LEGATO products and services revenues and Documentum products and services revenues that were historically presented in separate segments. The EMC
Software Group products and services revenues also include EMC multi-platform software licenses and related software maintenance revenues that were
historically included in our information storage products and information storage and management services segments. The 2004 and 2003 increases in the
EMC Software Group products and services revenues were primarily attributable to the incremental revenue related to the acquisitions of Documentum and
LEGATO as well as greater demand for EMC multi-platform software products.
The VMware products and services segment was established as a result of the acquisition of VMware in January 2004. VMware's technology enables
multiple operating systems to run simultaneously and independently on the same Intel-based server or workstation and move live applications across systems
without any business disruption. From the date of acquisition (January 9, 2004) through December 31, 2004, VMware products and services revenues were
$218.2. 17