EMC 2011 Annual Report Download - page 27

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Table of Contents
RESULTS OF OPERATIONS
Revenues
The following table presents revenue by our segments:
Percentage Change
2011 2010 2009 2011 vs 2010 2010 vs 2009
Information Storage $ 14,714.2 $ 12,699.1 $ 10,659.4 15.9% 19.1%
Information Intelligence Group 702.4 735.9 739.6 (4.6) (0.5)
RSA Information Security 828.2 729.4 606.0 13.5 20.4
VMware Virtual Infrastructure 3,762.9 2,850.7 2,021.0 32.0 41.1
Total revenues $ 20,007.6 $ 17,015.1 $ 14,025.9 17.6% 21.3%
Consolidated product revenues increased 15.6% to $12,590.7 in 2011. The consolidated product revenues increase was primarily driven by the
Information Storage and the VMware Virtual Infrastructure segments' product revenues. The overall growth in product revenue in 2011 was due to a
continued higher demand for our IT infrastructure offerings to address the storage and virtualization 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 Information Storage segment's product revenues increased 14.3% to $10,090.3 in 2011. Within the high-end of the Information Storage segment,
our Symmetrix product revenues increased 14.5%, primarily due to VMAX system sales and upgrades as customers continue to purchase VMAX for mission
critical data sets and business applications as well as for new use cases. Within the mid-tier of the Information Storage segment, which includes Unified
products, Backup and Recovery Systems, EMC Isilon and EMC Atmos, product revenues increased 24.7% in 2011 due to strong performance across each of
our mid-tier product groups. Within Unified products, our VNX family, which includes VNX and VNXe, was launched in the first quarter of 2011 and has
been well received by the market, bringing in almost 2,000 new customers in the fourth quarter of 2011 alone. Our Backup and Recovery Systems products
have become an essential part of our strategic offerings as Data Domain product growth continued to benefit from being owned by EMC which in turn helped
drive growth in our Avamar and NetWorker products. EMC Isilon, which was acquired at the end of 2010, contributed to our mid-tier product growth as its
revenues were included in our results for a full year in 2011 as compared to 2010. Finally, our Big Data storage and data analytics products continued to grow
faster than the market with EMC Isilon revenue more than doubling in 2011 as compared to 2010 as an independent company, and EMC Greenplum
expanding its offerings from a single product to a portfolio of products which includes a unified solution for Big Data analytics.
The VMware Virtual Infrastructure segment's product revenues increased 31.5% to $1,840.1 in 2011. VMware's license revenues increased in 2011
primarily due to strong global demand for vSphere. VMware observed an increase in the volume of ELAs in 2011 as compared to 2010 due to growing
customer interest as well as strong renewals from existing ELA customers.
The Information Intelligence Group segment's product revenues declined 18.5% to $219.5 in 2011. The decrease in product revenues was primarily
attributable to changing customer demand. The Information Intelligence Group segment continues to evolve to meet the buying preferences of today's content
management customers by transitioning to lighter-weight, content-enabled applications using modern virtualized frameworks. The RSA Information Security
segment's product revenues increased 10.2% to $440.8 in 2011. The increase in product revenues was primarily due to increased demand for our Security
Management and Compliance products.
Consolidated product revenues increased 23.4% to $10,892.9 in 2010. The consolidated product revenues increase was 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. The VMware Virtual Infrastructure segment's product revenues increased 36.0% to $1,399.3 in 2010. 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. The increase in product revenues across all segments in 2010 was primarily attributable to continued higher demand for our IT infrastructure offerings
to address the storage and virtualization 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.
Consolidated services revenues increased 21.1% to $7,416.8 in 2011. The consolidated services revenues increase was primarily driven by the
Information Storage and the VMware Virtual Infrastructure segments' services revenues where we continue to provide expertise to customers on the most
effective ways to enable Cloud Computing and to leverage their Big Data assets.
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