![]() ![]() To be fair, EMC beat its latest quarterly earnings per share estimate of $0.59 by a penny and exceeded by $60 million analysts' $6.64 billion quarterly revenue estimate. And with Google cutting prices on its cloud services by 85%, Barclays anticipates revenue-reducing price cuts on EMC hardware. Actifio let one of our customers cut the time to restore an old mailbox from three months to 30 seconds.”ĮMC revenues have grown 9% in the last year - and EPS should be up 7% in 2014. ![]() Their claims sounded too good to be true and they were a startup -but our technical people found that they delivered. DSM CEO David Robinson said, “I was a doubting Thomas on Actifio. DSM, which operates “Florida's largest DataCenter network” has been pleasantly surprised by Actifio. We have found a gaping hole in the market that is unaddressed by traditional storage guys.”Īctifio customers are happy. And in 50% of our sales, there was nobody else there. “22% of our sales come from what would have gone to EMC. Our goal is to get 100% of the market.”Īctifio’s success is coming out of the hides of big companies. We have a long way to go before we achieve 80% market share. By reducing the number of copies of data, we deliver a huge cost reduction – 18-fold for big companies and two to five-fold for mid-sized companies. ![]() Our product knocks out companies’ cost for copy data management by a factor of 18 to 20. As founder and CEO Ash Ashutosh explained, “Our market is $46 billion according to IDC. Revenues were up 182 percent in 2013 and it has over 300 business customers – such as Time Warner Cable, Netflix, IBM and Unilever - in 31 countries who pay an average of $349,000 for a three year contract to license its software, according to the New York Times.Īctifio has big ambitions. On March 23, Actifio announced that it had raised $100 million in new financing – led by investment firm, Tiger Global Management, along with venture capitalists Andreessen Horowitz and Greylock Partners - that valued the company at $1 billion.Īlthough revenues are in the $50 million to $100 million range and it is losing money, Actifio’s growth has been impressive. After all, startups generally are unprofitable and if a big company like EMC can scare away potential customers, an upstart could burn through its cash and disappear.īut Actifio has lobbed another stone at the head of EMC. Many big companies are reluctant to bet on a startup that could go out of business. Meanwhile, Actifio has suffered its own set of disadvantages. I'd guess that EMC hopes to blunt Actifio’s growth by suggesting that it may eventually introduce such products. However, EMC has not provided any actual products that deliver a similar benefit to customers. It acknowledges the importance of Actifio’s market – dubbed Copy Data Management – through public statements and white papers. Actifio gets rid of the need for all those copies - letting companies do all these things through a single “golden copy” that also slashes the time it takes to retrieve old files.ĮMC could have developed a product that helps companies in these ways - but it would have cut into EMC's revenue as customers bought the cheaper product that saved them money and time.Īctifio has taken advantage of the gap between the interests of customers - who want to operate more efficiently - and EMC management that wants to meet its revenue targets. EMC has been responding to this threat in a way that has not been overwhelmingly effective.
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