EMC 2010 Annual Report Download - page 26

Table of Contents
Consolidated product revenues increased 23.4% to $10,892.9 in 2010. The consolidated product revenues increases were primarily driven by the
Information Storage and the VMware Virtual Infrastructure segments' product revenues. The Information Storage segment's product revenues increased
22.6% to $8,824.3 in 2010. Within the high-end of the Information Storage segment, our Symmetrix product revenues increased 24.9%. Within the mid-tier
platform products of the Information Storage segment, product revenues increased 26.8% in 2010, partly due to the annual impact of the addition of the Data
Domain products in the third quarter of 2009. The overall growth in product revenues in 2010 reflects a continued higher demand for our IT infrastructure
offerings to address the storage needs for continued information growth, particularly as customers continue to build out their own data centers to develop and
support their private or public cloud infrastructures.
The VMware Virtual Infrastructure segment's product revenues increased 36.0% to $1,399.3 in 2010. VMware's license revenues continue to benefit
from strong customer demand for the vSphere platform, a foundation to cloud computing and an increase in customer spending as the economic conditions of
the industry improved.
The Information Intelligence Group segment's product revenues increased 3.2% to $269.1 in 2010. The RSA Information Security segment's product
revenues increased 17.6% to $400.2 in 2010. Increases in both segments were attributable to increased demand for software licenses.
Consolidated product revenues declined 12.3% to $8,828.1 in 2009. The Information Storage segment's product revenues decreased 12.9% to $7,198.1,
the Information Intelligence Group segment's product revenues declined 6.2% to $260.8 and the RSA Information Security segment's product revenues
declined 4.2% to $340.3 in 2009. The VMware Virtual Infrastructure segment's product revenues declined 12.4% to $1,029.0 in 2009. The decline in product
revenues across all segments in 2009 was primarily attributable to lower demand resulting from the challenging global economic environment and resulting
negative impact in our customers' IT purchases.
Consolidated services revenues increased 17.8% to $6,122.3 in 2010. The consolidated services revenues increase were primarily driven by the
Information Storage and the VMware Virtual Infrastructure segments' services revenues.
The Information Storage segment's services revenues increased 11.9% to $3,874.8 in 2010. The increases in services revenues were primarily
attributable to higher demand for systems maintenance-related services, which correlates to the increased sales in storage products. In addition, a growing
demand for professional services and software maintenance also contributed to the increases in services revenues in 2010.
The VMware Virtual Infrastructure segment's services revenues increased 46.3% to $1,451.5 in 2010. The increases in services revenues were primarily
attributable to growth in VMware's software maintenance revenues. In 2010, services revenues benefited from strong renewals, multi-year software
maintenance contracts sold in previous periods and additional maintenance contracts sold in conjunction with software licenses.
The Information Intelligence Group segment's services revenues declined 2.5% to $466.8 in 2010. The decline in services revenues was primarily
attributable to lower demand for professional services as customers transition from enterprise-wide to application-centric deployments. The RSA Information
Security segment's services revenues increased 23.9% to $329.2 in 2010. Services revenues increased due to an increase in professional services and
maintenance revenues resulting from continued demand for support from our installed base.
Consolidated services revenues increased 8.2% to $5,197.8 in 2009. The Information Storage segment's services revenues increased 2.7% to $3,461.4
and the RSA Information Security segment's services revenues increased 17.5% to $265.7 in 2009. The VMware Virtual Infrastructure segment's services
revenues increased 41.3% to $992.0 in 2009. The Information Intelligence Group segment's services revenues declined 5.7% to $478.8 in 2009. Services
revenues increased across all segments, excluding the Information Intelligence Group segment, 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.
Consolidated revenues by geography were as follows:
Percentage Change
2010 2009 2008 2010 vs 2009 2009 vs 2008
United States $ 9,152.4 $ 7,384.3 $ 7,990.8 23.9% (7.6)%
Europe, Middle East and Africa 4,942.1 4,290.3 4,555.0 15.2 (5.8)
Asia Pacific 1,965.2 1,603.1 1,640.1 22.6 (2.3)
Latin America, Mexico and Canada 955.5 748.2 690.3 27.7 8.4
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