EMC 2004 Annual Report Download - page 9

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Table of Contents
Revenue by Class of Product
Revenue from our systems, software, services and other businesses represented the following percentage of total revenues in 2004, 2003 and 2002:
Class of Product 2004 2003 2002
Systems 47.0% 53.1% 54.9%
Software 26.5% 22.6% 22.7%
Services 25.7% 22.7% 19.8%
Other Businesses 0.8% 1.6% 2.6%
Markets and Distribution Channels
Markets
We focus primarily on the information storage and management markets and the virtualization infrastructure software market. In these markets, EMC
targets large and medium-sized organizations, and, for the first time in 2004, smaller organizations with annual revenues well below $25 million.
Distribution Channels
We market our products through direct sales and through multiple distribution channels. We have a direct sales presence throughout North America, Latin
America, Europe, the Middle East, South Africa, and the Asia Pacific region. We also have agreements in place with many distributors, systems integrators,
resellers and OEMs. These agreements, subject to certain terms and conditions, enable these companies to market and resell certain EMC systems and
software. In 2004, we expanded our distribution capabilities through both new and enhanced partner and channel relationships. VMware generally distributes
its products and services through its own distribution channels that include distributors, systems integrators, resellers and OEM hardware vendors.
Technology Alliances
We have technology alliances with leading software, networking and services companies. We intend to continue to form additional alliances. Our strategy
is to work closely with these and other companies to provide added value to our customers by integrating our solutions with software and networking
applications that customers rely on to manage their day-to-day business operations.
Manufacturing and Quality
Our information storage systems are assembled and tested primarily at our facilities in the United States and Ireland. See "Properties." We work closely
with our suppliers to design, assemble and test product components in accordance with production standards and quality controls established by us. Our
software products are designed, developed and tested primarily at our facilities in the United States and abroad. The products are tested to meet quality
standards established by us.
We have implemented a formal, documented quality management system to ensure that our products and services satisfy customer needs and expectations,
and to provide the framework for continual improvement of our processes and products. This system is certified to the ISO 9001 International Standard.
Several additional 9001 certifications are maintained for sales and service operations worldwide. We have also implemented Six Sigma, Lean Manufacturing
and other quality methodologies to ensure that the quality of our designs, manufacturing, test processes and supplier relationships are continually improved.
Our manufacturing and test facilities in Massachusetts, North Carolina and Ireland are certified to ISO 14001, the International Standard for environmental
management systems. We also maintain Support Center Practices (SCP) certification for our customer support centers. These internationally recognized
endorsements of ongoing quality and environmental management are among the highest levels of certifications available.
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