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© Copyright 2006 EMC Corporation. All rights reserved.

The Next Wave of Innovation: Broadening the Impact of ILM

David GouldenExecutive Vice President,Customer Operations


2© Copyright 2006 EMC Corporation. All rights reserved.

Forward-Looking Statements

This presentation contains “forward-looking statements” as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) risks associated with acquisitions and investments, including the challenges and costs of integration, restructuring and achieving anticipated synergies; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (vi) component and product quality and availability; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) insufficient, excess or obsolete inventory; (ix) war or acts of terrorism; (x) the ability to attract and retain highly qualified employees; (xi) fluctuating currency exchange rates; and (xii) other one-time events and other important factors disclosed previously and from time to time in EMC’s filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this presentation. This presentation contains non-GAAP financial measures. A reconciliation to GAAP is included in the Current Report on Form 8-K filed by EMC on January 24, 2006.



($106M)

$438M

$896M

$1.3B

2002 2003 2004 2005

$5.4B$6.2B

$8.2B

$9.7B

Revenue ($B)

Net Income ($M)

Consistent Top Line and Bottom Line Growth:Three Years Plus!

Net income has been adjusted to exclude restructuring charges and other special items.GAAP net income/(loss) for 2002 was ($119M); 2003 $486M; 2004 $871M and 2005 $1,133M



Transforming our Business

Q405Q102

Software26%

Services15%

Systems59%

Systems59%

Software37%

Services15%

Services15%

Systems48%

Systems48%

Mix excludes other business revenue.



Investments in EMEA Delivering Results

NorthAmerica

APJ

EMEA

LatAm

59%

17%

22%

2%

NorthAmerica

APJ

EMEA

LatAm

57%

11%

30%

3%

Q102$1302M

Q405$2710M

108%

180%

2006 Sales Kick-off

6EMC CONFIDENTIAL—INTERNAL USE ONLY

Establishing & Extending Market Leadership in EuropeWestern Europe External RAID Market Share

*HP includes HWP and CPQ shareSource of base data: IDC, 12/05.EMC/Dell includes EMC’s external RAID revenue plus the portion of Dell’s external RAID revenue that IDC estimates to be EMC CLARiiON arrays. (IDC’s Dell CLARiiON revenue estimates include Dell’s channel markups.) Dell w/o EMC CLARiiON not graphed.

0%

10%

20%

30%

Q102 Q305

EMCEMC

HPHP

IBM IBM

Q204

27%

21%

13%

30%

15%

13%

EMCEMC

HPQHPQ



EMC: Delivering Strong Results in Q4’05

2005 performance momentum– Q4 record revenue. 10th consecutive quarter of double-digit growth

Balanced strength across all GeographiesSystems portfolio strength

– Great customer reception for new Symmetrix – Mid tier strength

Software portfolio strength – First billion-dollar quarter– Excellent opportunity for all of our software solutions– Taking share in Backup and Content Management – VMWare had another sizzling quarter

EMC: Delivering Strong Results in Q4’05



Other 2005 Highlights

Market Share leader in every major hardware and software segment



Global Market Presence:Q3 2005 Worldwide Market Share

Source: IDC Q3’05 Disk Storage Systems Quarterly Tracker, December 2005*Combines EMC’s revenue with Dell’s Dell/EMC CLARiiON revenue

ExternalDisk Storage

EMC 20.3%HP 19.1%IBM 12.9%Dell 8.4%HDS 8.3%EMC/Dell* 26.6%

Networked Storage(NAS, Open, & iSCSI SAN)

EMC 27.2%HP 21.5%IBM 11.3%NetApp 9.1%HDS 7.3%Dell 7.2%EMC/Dell* 33.7%

ExternalRAID

EMC 22.1%HP 17.0%IBM 13.3%HDS 9.0%Dell 7.4%NetApp 6.3%EMC/Dell* 29.0%

EnterpriseContent Mgt (CY04)

IBM 17.4%IXOS/Open Text 11.7%EMC 11.6%FileNet 10.5%

StorageSoftware

EMC 29.1%Symantec 20.0%IBM 9.4%NetApp 6.9%HP 6.7%

ReplicationSoftware

EMC 37.0%NetApp 18.4%IBM 8.2%HP 8.7%HDS 8.4%

SRMSoftware

EMC 49.8%Symantec 10.9%CA 8.1%IBM 6.4%HP 6.2%

Backup /Archive

Symantec 39.6%IBM 14.6%EMC 12.8%CA 9.0%So

ftwar

eH

ardw

are

EMC: #1 EMC: #1 EMC: #1

EMC: #1 EMC: #1 EMC: #1EMC: Fastest Growing

EMC:Fastest Growing





EMC a leader across Gartner Magic Quadrants: Midrange Arrays, Storage Services, Content Mgmt, and SRM/SAN software



2H 2005: Midrange Enterprise Disk Arrays

EMC a Leader Across Gartner Magic Quadrants

2005: Enterprise Content Management

Software

Q4 2005: SRM and SAN Management

Software2005: Storage Services

* Magic Quadrant Disclaimer—The Magic Quadrant is copyrighted November 3, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product, or service depicted in the Magic Quadrant; and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

2H 2005: Midrange Enterprise Disk Arrays

http://www.gartner.com/RecognizedUser





EMC a leader across Gartner Magic Quadrants: High-End and Midrange Arrays, Storage Services, Content Mgmt, and SRM/SAN software

EMC shipped more capacity in 2005 than 2000-2003 combined

EMC shipped more capacity in 2005 than the entireindustry in 2003

InfoWorld 2006: Most awards of any IT vendor



2005 Product Highlights: The Most Awards of Any Vendor

BestWorkstationVirtualization

VMware Workstation 5.5An indispensable companion to software developers and testers

BestServer

VirtualizationVMware ESX Server

and VirtualCenterDynamic duo points to

new possibilities indatacenter management

Best Storage Virtualization

InvistaPreserves investments in existing hardware without

sacrificing manageability or performance

BestEnterprise CMS

Documentum 5,Collaborative Edition

Impressive unified approach to managing content

creation, reuse, archiving, and disposal





EMC a leader across Gartner Magic Quadrants: High-End and Midrange Arrays, Storage Services, Content Mgmt, and SRM/SAN software


EMC shipped more capacity in 2005 than the entire industry in 2003


Fastest-growing large-cap enterprise IT company in 2005



EMC is Valued Among the World’s Top Enterprise IT CompaniesTop 10 IT Product Technology Companies Ranked by Market Cap (as of close of market Jan. 25, ‘06)

Note: All Revenue and EPS numbers are based on calendar years.EMC EPS growth was 31% on a GAAP basis*Consensus estimates

Rank Company Market Cap ($B)2005 Est.

Rev Growth2005 Est. EPS

Growth

1 Microsoft 280 8% 0%21%

5%18%23%20%32%12%47%25%

2 Intel 128 13%3 IBM 128 3%4 Cisco 113 10%5 HP 89 7%6 Dell 70 13%7 Oracle/Peoplesoft 63 9%8 SAP 57 12%9 EMC 33 17%

10 Symantec/Veritas 19 14%



Other 2005 Highlights . . .Momentum and Market Leadership


EMC a leader across Gartner Magic Quadrants: High-End and Midrange Arrays, Storage Services, Content Management, and SRM/SAN software


EMC shipped more capacity in 2005 than the entire industry in 2003


Fastest-growing large-cap enterprise IT company in 2005



Growth: ~8%

Addressing a Large Market . . .with Lots of Room to Grow!

Sources: IDC, Gartner, EMC estimates

2005 Market~$51B+

EMC ExpectedShare ~19%

Market Includes:External StorageSAN Connectivity

Storage Mgmt SoftwareInformation Mgmt Software

Backup and ArchiveStorage Services (excludes TPM)

Content Mgmt SoftwareServer Virtualization

Network Management SW

2006 Market~$55B+

EMC ExpectedShare ~20%

Market Includes:External StorageSAN Connectivity

Storage Mgmt SoftwareInformation Mgmt Software

Backup and ArchiveStorage Services (excludes TPM)

Content Mgmt SoftwareServer Virtualization

Network Management SW



2006 Technology Spending Priorities -- CIO Survey

Source: Morgan Stanley November CIO Survey, Jan. 3, 2006

1. Security (Software) 11. Wireless LAN (clients)2. Security (Network Equipment) 12. New Custom Development3. Storage Area Networks 13. Routing4. Wireless LAN (access points & routers) 14. Systems Management Software5. Storage Software 15. Application Integration Software6. Portal Software 16. Notebook PC’s7. VOIP Infrastructure 17. Document Management Software8. IT Education and Training 18. Automated Testing Tool9. Storage Hardware 19. Microsoft Office Upgrade10. Business Intelligence Software 20. Application Software Server



2006 EMC Outlook

Revenue: $11.1B - $11.3B 15% - 17%EPS: $0.63 - $0.66 19% - 25%

(5¢)

19¢

37¢

53¢

2002 2003 2004 2005

Revenue ($B)

$5.4B$6.2B

$8.2B$9.7B+

63-66¢

2006e

$11.1–11.3B

EPS (¢)

Net income has been adjusted to exclude restructuring charges and other special items. 2006 EPS guidance excludes stock option expense of approx. $.09 p



Customers’ Information Storage andManagement Challenges

CIO’s Dilemma:How to manage all the information

growth with limited resources?

Information stored on disk arrays ~ 70%IT budget growth ~ 4 - 5%IT environment getting more complexSLA’s continue to expand and tightenProtection and security increasingly important



EMC’s Strategy

Information Lifecycle Management:a strategy to align IT infrastructure

with the business based on the changing value of information

ILM



Information Lifecycle Management

• Classes of infrastructure• Information placement• Storage management

automation

Phase 1: Tiered Infrastructure

App App

Data Data

App

Data

• Policies for key applications

• Application-specific ILM components

Phase 2:Application-Specific ILM

App App App

Data Data

Phase 3:Cross-Application ILM

App App App

• Enterprise-wide repositories

• Integrated view of information assets

• Infrastructure Virtualization



What EMC Offers: Information Infrastructures … for ILM

Content Services

Storage Security

ArchivingArchiving

Data MobilityData Mobility

Protection OptionsProtection Options

Tiered StorageTiered Storage

ResourceMgmt Services

andSolutions

Partners



Today’s Announcements

Data MobilityData Mobility

Protection OptionsProtection Options

Tiered StorageTiered Storage

Content Services

Storage Security

ResourceMgmt Services

andSolutions

Partners

Archiving



Sustained Investment inInformation Management & Storage R&D

2003 2004 2005

$720M $850M >$1B

2006

>$1B



Realtime NetworkSystems Management

Server Virtualization

UnstructuredData ContentManagement

Protection / RecoveryIntelligent Data Movement

Backup /Recovery

for SMB

Extends virtualizationto NAS environments

Invested >$4 Billion (’03 – ’05) inStrategic Software Acquisitions

Information capture, digitization,categorization.

2003 2004 2005



2005’s Prolific Product Rollout

New PlatformsDMX-3CLARiiON AX100i, CX300i, CX500i with iSCSI supportCLARiiON CX300-s,CX500-s, CX700-sCelerra NSX NAS GatewayCentera Four-Node

New & Enhanced SoftwareDocumentum 5.3Documentum eRoom Enterprise 7.3Centera Seek, Centera Chargeback ReporterEMC InvistaDantz Retrospect 7EMC Smarts MPLS ManagerVMware ACEVMware Workstation 5.5ESX Server 3Virtual Center 2EMC RecoverPointNetworker 7.3Backup AdvisorSmarts ApplicationConnectivity

New Services & SolutionsMaking Storage SimpleEnterprise Services Ready Classification and Policy ServicesEMC Open MigratorSAMS Surveillance AnalysisDatabase Xtender for SAPFramework Integration ServicesEMC Solution Suite for SQL ServerEMC WebSupportEMC Secure Remote Support Gateway



Product Innovation Will Continue at Full Steam in 2006

More new and enhanced products and services than in 2005

New Platforms New & Enhanced Software New Services & Solutions



Excited about 2006

Strong momentum and market positionPositive economic environmentIT spending up around the world in 2006

– EMC focused on many of the hottest IT/Customer priorities– EMC focused on a large market with room to grow

ILM strategy paying dividendsStrong EMC product cycleEMC will gain share in 2006

Documents

The Next Wave of Innovation: Broadening the Impact of ILMlibrary.corporate-ir.net/library/10/106/106202/items/182568/Gould... · $9.7B Revenue ($B) Net Income ($M) Consistent Top