EMC 2006 Annual Report Download - page 8

Table of Contents
providing tools that enable companies to collect, monitor, analyze and report on security event-related activity throughout the IT infrastructure – in the
network, in enterprise applications, on mainframes, on desktops, in storage devices or elsewhere. Solutions from Network Intelligence ease the burden of
proving compliance with security policies and regulations.
In 2006, RSA introduced its RSA Key Manager software, which enables businesses to effectively manage the lifecycle of encryption keys. The solution
also helps companies comply with the key lifecycle management guidelines of the Payment Card Industry ("PCI") Data Security Standard, a global initiative
of leading payment card companies which strives to protect consumers' transaction data.
We intend to continue to enhance RSA's products and services with additional features and capabilities and to introduce new products and services.
VMware Virtual Infrastructure Segment
VMware, Inc. ("VMware") is a subsidiary of EMC. Its virtual infrastructure solutions and services are used by more than 20,000 enterprises for server
consolidation and containment, disaster recovery and business continuity, capacity planning and development, enterprise desktop hosting, test optimization
and software distribution. By helping customers virtualize their enterprises, VMware enables them to build a more flexible and highly available IT
infrastructure.
VMware virtual infrastructure simplifies IT so companies better leverage their storage, network and computing resources to control costs and increase
response time. The VMware virtual infrastructure approach to IT management creates virtual resources from the physical IT infrastructure, enabling
administrators to allocate these virtual resources quickly to the business units that need them most.
In 2006, VMware introduced Infrastructure 3, the third generation of its virtualization software. VMware Infrastructure 3 delivers an unprecedented
ability to automate maximum power savings, guaranteed response times and newly added capacity and consolidated backup.
In 2006, VMware also launched Virtual Desktop Infrastructure, a solution that moves desktop management to a centralized server and secures its data
there; shipped VMware Lab Manager, which enables enterprise software development organizations to more efficiently utilize software development and test
lab assets, accelerate software development cycles and increase the quality of delivered software products; introduced VMware Converter 3, the next
generation of its conversion tool that enables fast and reliable Physical-to-Virtual and Virtual-to-Virtual conversions through a simple and centralized
management product; expanded its customer base with the release of VMware Server, the free, feature-packed hosted virtualization product that provides
companies a first step to enterprise-wide infrastructure virtualization and offers the option to purchase enterprise-class VMware support; and launched the
Virtual Appliance Marketplace.
VMware intends to continue to enhance its products and services with additional features and capabilities and to introduce new software products and
services.
In 2007, we announced our intention to sell approximately 10% of VMware via an initial public offering of newly-issued VMware stock. We will retain
ownership in the remaining shares of VMware.
Markets and Distribution Channels
Markets
We focus on providing information storage, content management and archiving, security and virtualization to support customers' information
infrastructures and their ILM strategies. We target organizations of all sizes.
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 2006, 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.
In 2006, EMC and Dell, Inc. ("Dell") announced an extension of a strategic alliance enabling Dell to offer EMC technology through 2011. Also, EMC formed
an OEM and technology relationship with Intel Corporation ("Intel"), enabling Intel to offer certain EMC storage systems under the Intel brand name. In
addition, EMC and NEC Corporation announced an expansion of their strategic business and technology alliance in 2006.
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