EMC 2009 Annual Report Download - page 26

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Table of Contents
Consolidated services revenues increased 8.2% and 25.8% to $5,197.8 and $4,804.3 in 2009 and 2008, respectively. The Information Storage segment's
services revenues increased 2.7% and 20.4% to $3,461.4 and $3,368.8 in 2009 and 2008, respectively. The RSA Information Security segment's services
revenue increased 17.5% and 35.2% to $265.7 and $226.2 in 2009 and 2008, respectively. Services revenues increased for these segments in 2009 due to an
increase in maintenance revenues resulting from continued demand for support from our installed base. The increased demand was partially offset by a
decline in professional services revenue which was associated with the decline in product revenues. Services revenues increased in 2008 due to growing
demand for both professional services and maintenance.
The Content Management and Archiving segment's services revenues declined 5.7% to $478.8 in 2009 and increased 16.5% to $507.5 in 2008. The
decline in services revenues in 2009 was attributable to lower demand for our product offerings which reduced the demand for professional services. The
increase in services revenues in 2008 was primarily due to an increase in maintenance revenues resulting from continued demand for support from our
installed base.
The VMware Virtual Infrastructure segment's services revenues increased 41.3% and 68.1% to $992.0 and $701.9 in 2009 and 2008, respectively. In
2009, services revenues increased as a result of strong maintenance renewals, multi-year software maintenance contracts sold in previous periods, and
additional maintenance contracts sold in conjunction with software sales. In addition, the growth in services revenues benefited from customers becoming
current on their maintenance agreements in order to receive VMware's new product offerings as part of those arrangements. As VMware focused on
recovering back maintenance during 2009, the Company anticipates revenue from back maintenance to decline in 2010 as customers have become current. In
2008, the growth in services revenues reflected the increase in license revenues, as maintenance services are generally purchased with licenses, the benefit
from multi-year software maintenance contracts sold in previous periods and renewals of existing customer software maintenance contracts.
Consolidated revenues by geography were as follows:
Percentage Change
2009 2008 2007 2009 vs 2008 2008 vs 2007
United States $ 7,384.3 $ 7,990.8 $ 7,343.0 (7.6)% 8.8%
Europe, Middle East and Africa 4,290.3 4,555.0 3,921.1 (5.8) 16.2
Asia Pacific 1,603.1 1,640.1 1,400.0 (2.3) 17.2
Latin America, Mexico and Canada 748.2 690.3 566.1 8.4 21.9
Revenues decreased in 2009 in all of our markets, with the exception of Latin America, Mexico and Canada, due to the challenging global economic
environment and resulting negative impact in customers' IT purchases. Revenues improved in Latin America, Mexico and Canada primarily due to increased
demand for our offerings. Revenues increased in 2008 in all of our markets due to greater demand for our products and services offerings. Changes in
exchange rates negatively impacted revenues by 1.4% in 2009 and positively impacted revenues by 0.8% in 2008. The impact of the change in rates in 2009
and 2008 was most significant in the European market, primarily Germany, France, Italy and the United Kingdom.
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