2000 - EMC

Transcrição

2000 - EMC

WHERE
INFORMATION
LIVES
EMC
CORPORATION
ANNUAL
REPORT
2000
INFORMATION
IS AT THE
CENTER OF
BUSINESS.
AND ONLY ONE
BUSINESS IS AT
THE CENTER OF
INFORMATION.
letter
MIKE
RUETTGERS
Executive
Chairman of
the Board
JOE
TUCCI
President and
Chief Executive
Officer
Today the world will create the equivalent of
eight million hours of motion picture images.Tomorrow, the equivalent of  million meters of shelved books.The next day, another
 million gigabytes of new information will arrive. By next year, this
daily volume will double and the following year it will quadruple, with
no end in sight.
This “Big Bang” of new content, nearly all of it “born” in digital form, will overwhelm some organizations but create huge opportunity for others. For example, it could cause a hospital’s administrative
costs to soar. Or it could transform the accuracy and speed of diagnostic medicine by putting a patient’s entire medical history at a
physician’s fingertips within seconds.This explosion of content could
inundate a bank that suddenly finds its volume of information too large
to manage yet too valuable to ignore. Or it could be a powerful tool
for farmers, helping them eliminate guesswork, improve yields, and
boost profits.The key will be the ability to channel its energy.
The new century will bring a new era of building businesses
out of information. EMC is taking responsibility for helping companies
TO OUR STOCKHOLDERS
not simply prepare for the Content Big Bang, but channel it for
greater productivity and decisive competitive advantage. We’ve
already invested nearly six billion dollars and more than a decade of
R&D to build the technological foundation to scale in tandem with
the Content Big Bang. Over the next five years, we intend to dramatically increase this investment to help companies raise their ROI — their
Return on Information — to new heights.
As this report illustrates, this foresight, investment, and execution are paying off for EMC, our customers, and our stockholders.
By every measure,  was an extraordinary year for EMC. Our total consolidated revenues grew 
percent to a record $. billion. Our information storage revenues
(which made up  percent of the total) grew at an accelerating pace
each quarter:  percent in the first quarter,  percent in the second,
 percent in the third, and  percent in the fourth — our highest quarterly storage growth rate in nearly six years. Internationally,
EMC’s information storage revenues grew even faster, reaching 
percent year-to-year growth in the fourth quarter.
AT THE CENTER OF BUSINESS
Overall, EMC is now growing faster than we did when we
were half our current size. We exited the year  on a $ billion
dollar annual run rate. And we’re marching aggressively toward our
 annual revenue goal of $ billion.
Net income for  was $. billion, up  percent over
 (excluding a one-time charge for the acquisition of Data General
in ). EMC’s  percent return on sales is among the highest
across the IT industry. On a diluted basis, our earnings per share were
$. for the year, compared with $. for , adjusted for the
June ,  stock split and excluding the one-time charge in .
Customers are investing in EMC solutions in record numbers.
The new information storage products we introduced in early 
accounted for half the year’s total storage product revenues. EMC’s
momentum is also evident in our growing market share. According
to independent market research firm International Data Corporation,
in , EMC was the number-one supplier in the information storage market, gaining significantly more revenue market share than any
other supplier.
ACCELERATING
INFORMATION
STORAGE REVENUE
Year-over-year
percent increase
50%
47%
43%
34%
Q1
00
Q2
00
Q3
00
Q4
00
Over the past decade, EMC’s sales have soared.This performance has its roots in a culture of consistent execution and best
practices.Our product generation and development model is so strong
that the bigger we’ve gotten, the faster we’ve become.We focus our
strategic thinking with a six-quarter rolling planning process that helps
us to anticipate and react quickly to changes in our environment.We
work to minimize the impact of economic shifts by operating a business that is balanced by technology platforms, distribution channels,
product lines, market segments, geographic regions, and customers.
EMC’s best practices also extend to succession planning. In
January , our Board of Directors promoted Mike Ruettgers to
Executive Chairman and Joe Tucci to President and CEO. As Executive
Chairman,Mike remains fully engaged with EMC and is focusing even
more of his attention on strategic business and technology directions.
Joe continues to have overall responsibility for EMC’s day-to-day
operations and takes a seat on the Board. Our founder, Dick Egan,
remains active as Founder and Chairman Emeritus.
AT THE CENTER OF THE CUSTOMER’S BUSINESS
EMC promises cus-
tomers that no matter how fast their marketplaces change, what new
technologies emerge, or how much information they need to handle,
we will be the world’s best caretaker and enabler of all their information.We fulfill this promise through The EMC Offering,our phrase for
every benefit customers experience when they do business with EMC.
The EMC Offering begins with the world’s leading information storage systems, software, networks, and services. It continues with
access to the expertise of some , information storage engineers,
, customer service professionals and professional services consultants, and , sales personnel and systems engineers — all of them
specialists in information storage. Through The EMC Offering, customers reap the benefits of the billions of dollars we’ve invested in
R&D, our Centers of Excellence, our E-Lab interoperability testing
facility, and scores of industry partnerships. Not to mention financing alternatives, technical blueprints, education, and training.
Ultimately, it’s customers who decide whether a company is
at the center of their business. In October, InformationWeek surveyed
ACCELERATING
INTERNATIONAL
INFORMATION
STORAGE REVENUE
Year-over-year
percent increase
67%
59%
53%
36%
Q1
00
Q2
00
Q3
00
Q4
00
 IT professionals responsible for purchasing storage products and
asked them to rank the world’s storage suppliers on the value they offer.
EMC was ranked number one in product innovation,product reliability,
after-sale service,service-level guarantees,and interoperability standards.
EMC also was deemed overall customer satisfaction leader by
a wide margin. As Research Director Carl Howe of Forrester Research
told Forbes magazine,“EMC has the highest ratings we’ve ever seen
— in any customer survey, for any company, ever.”
Successful organizations now realize that where they keep their information is as important as where they keep their money. The “where” determines how
well information can be used. Less and less of the world’s information
sits inside computers, while more and more now lives inside intelligent information storage systems.
As a result, information storage has emerged as the most
strategic information technology. The capacity to manage everexpanding amounts of information has become as essential as heat or
AT
THE
CENTER
OF
INFORMATION
TECHNOLOGY
electricity. Customers may postpone application and PC upgrades,
but they can’t easily control the onrushing wave of new information,
or the need to store, move, manage, and access it.
Independent market data confirm this trend.According to
Gartner Group,storage industry hardware revenues will probably grow
 percent a year through , nearly four times as fast as servers and
nearly three times as fast as network equipment. By the end of ,
total spending on information storage will overtake spending on servers.
Information has value only if it’s accessible instantly, around
the clock. So EMC constantly devises better, simpler, more costeffective ways to safeguard,preserve,move,copy,view,analyze,and manage information. In April , we introduced a completely new line
of our Symmetrix Enterprise Storage systems (our fifth generation)
as well as new mid-tier CLARiiON systems and software built on a
nine-year foundation of high availability and reliability. These networked information storage systems remove constraints on the speed
and scale at which information can be gathered and leveraged.
In December, we extended the reach of our information
storage technology from the data center to the network’s edge with
NETWORKED
INFORMATION
STORAGE REVENUE
Total 2000: $2.1B
372 percent year to year
$770
$567
$458
$323
Q1
00
Q2
00
Q3
00
Q4
00
(in millions)
more new networked information storage systems and software: EMC
Celerra with HighRoad software and EMC CLARiiON IP systems. In January , we introduced EMC CLARiiON FC, the
fifth generation of our CLARiiON networked storage system.The
CLARiiON  systems are code-named Chameleon because
they are the first systems to handle either network attached
storage ( NAS) or storage area network (SAN ) environments.
EMC started the trend toward the networking of storage, and
shipped more than $ billion in networked information storage
products during .
In information storage software, EMC has a multi-year lead
over our competitors. Our software revenues grew  percent to
$. billion during , making EMC one of the largest application
software companies in the world. To extend this position, we intend
to invest $ million in software development in  alone. And we
will apply the combined engineering and product capital of the five
software companies we acquired during : Softworks,Terascape,
Avalon, Digital Bitcasting, and CrosStor Software.
AT THE CENTER OF INFORMATION INFRASTRUCTURE
EMC invented true
open storage before our competitors even knew there would be a market for it. EMC invests heavily in interoperability so our customers don’t
have to. Our information storage systems are compatible with nearly
every major information technology our customers use. In fact, EMC
systems now interoperate with more than  server models, 
operating systems, and more than  networking elements.
EMC’s open infrastructure allows any company in the world
to engineer products that will seamlessly interface with EMC systems.
This openness saves customers the burden of having to figure out what
works with what. As a result, EMC’s E-Infostructure Developers
Program™ has become a magnet for third-party software developers,
offering them the same software interfaces our own engineers use, and
enabling partnering technology companies to pair with EMC’s customers.To date,more than  partners have produced new applications
that work seamlessly with EMC information storage systems.
The same drive to create a universal information infrastructure shapes our alliances with other heavyweights of the IT industry.
NETWORKED
INFORMATION
STORAGE
MARKET SHARE
Market Share
31%
2000
EMC
Sun
NetApp
Compaq
HP
Source: IDC, 2001
1999
Our work with Nortel and Lucent, for example, blends broadband
technologies with EMC storage networking technology to create
tomorrow’s global “information grid” — a way to make information
around the world as instantly accessible as if it were within arm’s reach.
EMC information plants — giant, self-managing information storage
infrastructures that will speed large amounts of information safely
over long distances — will power this grid.
In , EMC, Cisco, and Oracle created an e-business technology initiative called ECOstructure, which has produced technical
blueprints for designing and operating e-business infrastructures that
are secure and remain in constant operation. Each week, hundreds of
customers download these blueprints from our Web site.
AT THE CENTER OF THE INFORMATION SOCIETY
EMC’s global market
opportunity was estimated to be about $ billion in .Yet
we achieved our leading market position with only about a 
percent revenue share. In  we expect our market opportunity
to exceed $ billion.
This means EMC has tremendous headroom in a burgeoning
market, because information is the solar energy of life. It’s both indispensable and inexhaustible. It’s the glue holding organizations together
and the raw material for creating new products,services,processes,business models, and markets.Without shared information, there could be
no commerce; no social organization; no education, entertainment, or
culture, and no democracy.
As the digitization of life continues apace, EMC is touching
more and more of the information that touches people. Information
is at the center of business. And only one business is at the center of
information. EMC — where information lives.
Michael C. Ruettgers
Executive Chairman of the Board
Joseph M. Tucci
President and Chief Executive Officer
TO DICK EGAN
Dick Egan
Founder and
Chairman Emeritus
EMC Corporation
In January , EMC founder Dick Egan “took a step back,” as he
put it, to become Founder and Chairman Emeritus of EMC’s Board
of Directors.
Dick’s history and achievements tell part of the story. His
working-class, strong-family-ties roots in Boston, Massachusetts. His
work on the Apollo moon-landing guidance system, and his
cofounding of Cambridge Memories. His work with computer
industry legends Gordon Moore, Robert Noyce, and Andy Grove at
Intel. His return to Massachusetts in  to start EMC — and in the
process, an industry.
But who he is tells even more. The consummate engineer. The
matchless motivator and mentor. The unequaled judge of talent.The
personal responses to every note from an employee, signed in red ink
and including his telephone number.The raw energy. The tireless devotion to customers. The passionate insistence on being the best. And
the unshakable conviction that roadblocks are just thrills in disguise.
Here’s to you, Dick: the “E” in EMC.
AT THE CENTER OF
INFORMATION
Product. Service. Distribution.
At the core of EMC’s global leadership
in information storage are continuous
investments in these three critical
areas: advanced products, the broadest complement of services in the
industry, and a full range of direct
and indirect distribution channels.
Together with EMC’s Centers of
Excellence, E-Lab interoperability,
and EMC Proven Program, these elements compose the EMC offering.
Here are some of the major components, including enhancements made
in 2000 and early 2001.
PRODUCT
Symmetrix ® 8000,
newest member of
EMC’s family of
enterprise information
storage systems:
Enginuity ™ Operating
Environment.
E-Infostructure ™
Developers Program.
Gives third-party
software developers
the interfaces they
need to develop
new applications for
EMC systems.
Significant enhancements to SRDF,™
ControlCenter,™
TimeFinder,™ and
InfoMover ™ software;
new CopyCross™ software.
CLARiiON ® FC4500,
bringing CLARiiON into
EMC’s Enterprise Storage
Network family. Multiplatform host support,
switched Fibre Channel
network connectivity.
Enterprise Storage
Network enhancements,
CLARiiON IP4700/
FC4700 (Chameleon),
each capable of NAS or
SAN connectivity.
New Access Logix ™
and SnapView ™/IP
software; significant
enhancements to
Navisphere ® and
Application Transparent
Failover ™ software.
SAN/NAS integration,
revolutionary HighRoad™
file-sharing software
that automatically
routes data to NAS or
SAN networks without
server intervention.
Celerra™ SE, Celerra
file server and
Symmetrix Enterprise
Storage combined in a
single enclosure.
EMC ControlCenter
software bringing
Symmetrix and
CLARiiON systems
under a single
management view.
SERVICE
EMC Global Services,
providing services through
internal competencies as
well as regional and
global services partner
alliances. EMC’s Global
Services team includes
more than 6,500 professionals in 47 countries.
EMC Customer Service.
Undisputed industry
leader in customer
satisfaction. 24-houra-day, 365-day-a-year
proactive service for
both hardware and software. 99 percent customer retention rate.
EMC Professional
Services. Consultation
and implementation
in storage infrastructure solutions that
deliver value over the
entire life of the
customer relationship.
Global Technical
Training. 10 centers in
the US, Europe, Asia,
and Latin America
scheduled for firsthalf 2001; new EMC
Proven™ Professional
Certification program.
DISTRIBUTION
EMC Direct Sales,
7,500 people around
the globe focused
exclusively on
information storage.
ECOstructure
(EMC/Cisco/Oracle)
Initiative. Three-company initiative providing
pre-tested blueprints
for successful e-business
architectures.
Global alliance with
Microsoft. Alliances
with Nortel, Lucent
and Cisco to define
next-generation optical
networks.
Expanded reseller
channels for both
Symmetrix and
CLARiiON systems.
xSPerience™ Provider
Program, helping
service provider partners succeed in their
marketplace.
Reseller/OEM
(Original Equipment
Manufacturer)
relationships with
such industry leaders
as Unisys, Fujitsu
Siemens and NEC.
The EMC Orb™
WHERE
INFORMATION
LIVES
content
A DIGITAL GLOSSARY
BANDWIDTH
A Short Guide to Today’s
Information Terminology
Capacity of any medium, from copper wire to optical fiber
to microwaves, to carry signals.The million-fold increase in bandwidth
expected over the next few years will dramatically increase both the
growth of information and people’s access to it. See figure .
Explosion of digitized information resulting from
the “digital wake” of our daily lives, coupled with advances in information storage technologies and in optical networking. See figure .
CONTENT BIG BANG
Merging of communications and computing technologies, making possible such things as phone calls from your laptop.
One of the factors fueling mega-mergers among global media giants.
See figure .
CONVERGENCE
Any information (text, music, video, etc.) represented in numerical form, the only language computers understand.
More than  percent of all new information is now created in digital
form. See figure .
DIGITIZED INFORMATION
E - I N F O S T R U C T U R E The most comprehensive information infrastructure
in the world, available only from EMC. B A N D W I D T H Capacity of any
medium, from copper wire to optical fiber
figure 1: Bandwidth
figure 2: Content Big Bang
figure 3: Convergence
figure 4: Digitized Information
The full complement of technologies, services, alliances,
expertise, and capabilities EMC brings to bear to ensure customers’
success.
EMC OFFERING
F I B E R O P T I C S Technology for moving enormous quantities of data via
light waves down flexible glass wires.The superhighway of the information age, capable of moving entire libraries in a flash. See figure .
Requiring active user participation, as in video games,
some Internet sites, and some broadcast media. See figure .
INTERACTIVE
Ability of one company’s hardware or software
to work with other companies’ products. As with bandwidth, more
is better. See figure .
INTEROPERABILITY
IT
Information technology, the engine powering the global economy.
Network-Attached Storage, methodology that makes it possible
for many users, usually on a Local Area Network, to share information contained in files. See SAN.
NAS
Return on Information, today’s leading determinant of business
success. See figure .
ROI
figure 5: Fiber Optics
figure 6: Interactive
figure 7: Interoperability
figure 8: Return on Information
Digitized information other than text: photographs,
music files, video, digital movies. Creates unprecedented demand for
information storage capacity. See figure .
RICH CONTENT
Storage Area Network, a network of information storage devices
and the computers that access them, designed to give users access to
whatever information they need, whenever they need it. Provides
speed, scalability. See figure .
SAN
Raging debate rendered obsolete by EMC in  with
the introduction of Celerra with HighRoad software, which delivers the benefits of both. EMC believes all information storage should
be networked.
SAN vs NAS
Technology for compressing and transmitting
sound or graphics in a continuous stream, so users can watch or listen in real time without having to download. Comprises about 
percent of Internet traffic today; expected to increase dramatically with
spread of high-speed Net access and migration of traditional media
to digital formats. See figure .
STREAMING MEDIA
UNIVERSAL DATA TONE
EMC’s vision of anywhere, anytime access to
information via a worldwide information storage infrastructure.Will
be analogous to telephone system’s universal dial tone.
W I R E L E S S Electronic communication using radio or light waves rather
than hard wiring between devices. Proliferation of wireless devices
greatly accelerates demand for intelligent information storage. See
figure .
Internet-Age outsourcer. Service provider offering Internet access
(ISP), software applications (ASP), storage (SSP), or other services,
with technology residing at centralized data centers and delivered to
subscribers over a network.
xSP
figure 9: Rich Content
figure 10: SAN
figure 11: Streaming Media
figure 12: Wireless
HOW MUCH INFORMATION?
The amount of new information being
created is doubling every year, with no
end in sight.
In , EMC sponsored a study by the School of Information
Management Systems (SIMS) at the University of California, Berkeley,
to determine how much information actually exists in the world, and
how much new information is being created every day.
Among the study’s findings:
— The world produced about  exabytes (see chart at right) of new
information in ,the equivalent of about  novel-sized books,
or two floppy disks, for every man, woman, and child on earth.
— More new information will be created over the next two years than
has been created over the entire history of mankind.
— The amount of new information being created is doubling every
year, with no end in sight.
— Print comprises only . percent of the total.
— More information by far is created by individuals than businesses,
a trend researchers call the “democratization” of information.
— Already more than  billion photographs are taken every year,
which would require  million times more digital information
storage than the same number of words.
KILOBYTE
(1,000 bytes) a very short story
MEGABYTE
(1,000,000 bytes) a small novel
GIGABYTE
(1 billion bytes) Beethoven’s 5th Symphony
TERABYTE
(1,000 gigabytes) all the X-rays in a large hospital
PETABYTE
(1,000 terabytes) half the contents of all US academic research libraries
EXABYTE
(1,000 petabytes) 5 exabytes — all the words people have ever spoken
ZETTABYTE
(1,000 exabytes) as much information as there are grains of sand on all the world’s beaches.
YOTTABYTE
(1,000 zettabytes) as much information as there are atoms in 7,000 human bodies.
Courtesy of Roy Williams, Center for Advanced Computing Research at California Institute of Technology.
THE DEMOCRATIZATION
OF INFORMATION
Traveler Beth Knutsen (“fogcitygirl”)
took a year off from her job as a marketing director to travel the American
Northwest, using her personal Web site
as a virtual diary for her pictures, music,
and observations.
One surprise in the Berkeley “How Much Information?” study was
that it’s not giant corporations that are responsible for most of the
new information being created today; it’s individuals. A whopping 
percent of all new information is created by individuals, most of it
stored on individual PC hard drives.
But an increasing number of individuals are choosing another
option for the content they create: posting and sharing it on personal
Internet sites.
Personal Web sites store and make available songwriters’ MP
files,travelers’journals,photographers’portfolios,and hundreds of other
unique collections people want to share.
Reuben Costa Filho, a Brazilian surgeon, uses a personal Web
site to share photos of his tracheostomy surgeries with other physicians. Beth Knutsen uses hers to share her travel diary with friends.
In a few years, a single household with a camcorder, digital
camera, VCR, DVD player, and personal video recorder could create
a terabyte of data over the course of the year — unlikely to be entrusted
to a PC hard drive.
“TRAVEL HAS
A WAY OF
STRETCHING
TIME. YOU
REGISTER
EACH MOMENT
AS IT GOES
BY.” BETH
KNUTSEN, AKA
FOGCITYGIRL
SINGAPORE:
A WIRED FINANCIAL HUB:
Singapore’s DBS Bank is one
of the keys to the island nation’s
financial leadership
Thanks partly to its strategic location and partly to government policy,
Singapore has become one of the world’s most vibrant financial centers.
Since the s, the Monetary Authority of Singapore has
worked diligently to develop a friendly regulatory environment, an
educated workforce, an excellent telecommunications infrastructure,
and openness to foreign investment, thereby attracting hundreds of
foreign financial institutions. Singapore has also actively encouraged
regional banks to consolidate in order to have greater influence on the
global financial scene.
The recent merger between Development Bank of Singapore
(DBS) and POSB Bank has made DBS the largest bank in Southeast
Asia and one of the top banks in the world, with offices from Beijing
to Los Angeles.
EMC played a key role in the bank consolidation, providing
the technology infrastructure that made it possible to smoothly consolidate four data centers into two and to provide a robust platform
for accelerated growth. DBS is taking leadership in the launch of new
services, including wireless banking and online investing.
Through its state-of-the-art telecommunications network
and EMC’s extended-distance business continuance and data mobility
software,Symmetrix Remote Data Facility, DBS Hong Kong is expected
to play a strategic role in the bank’s regional expansion.
ONE OF ASIA’S
KEY BANKS,
SINGAPORE’S
DBS OFFERS
WIRELESS
BANKING.
SURVIVORS OF THE SHOAH
BEARING WITNESS TO HISTORY
One Shoah witness is Silvia, who, on
the day Germany took control of Austria
in 1938, was a 19-year-old actress.
Silvia left Vienna with a traveling theater
troupe. In 1940, Germany invaded the
Netherlands and Silvia found herself
trapped in an occupied country. In
1942, she joined a resistance group.
When the operation was uncovered in
1942, she went into hiding. Attempting
to escape to Switzerland, Silvia was
captured and sent to Auschwitz and
then to Ravens-brueck. In early 1945,
Silvia was included in a Red Cross
evacuation that was bombed on its way
to Sweden. She was one of only 120
women to survive the journey.
In , following the filming of the Academy Award-winning
“Schindler’s List,” director Steven Spielberg founded Survivors of
the Shoah Visual History Foundation to preserve the testimony of survivors and witnesses of the Holocaust on videotape.
Since then, the Foundation has videotaped the testimonies of
more than , survivors and witnesses in  countries and in 
languages, archiving them on EMC Symmetrix information storage
systems.The archive enables students and researchers to access more
than , hours of material related to the Holocaust.The videotapes are also encoded in MPEG format so they can be streamed worldwide via secure fiber-optic networks by EMC Celerra Media Servers.
“Our hope,” says Spielberg,“is that these testimonies will be
a resource so enduring that, years from now, people around the world
will learn directly from survivors and witnesses about the atrocities of
the Holocaust — what it means to survive, and how our very humanity depends on the practice of tolerance and mutual respect.”
“OUR VERY
HUMANITY
DEPENDS ON
THE PRACTICE
OF TOLERANCE
AND MUTUAL
RESPECT.”
STEVEN
SPIELBERG
WHAT IS RICH CONTENT?
This NASA image of a shrinking
Patagonian glacier shows an area
36 x 30 km as it appeared in May
2000. Vegetation appears red.
The glacier is riddled with deep
crevasses, and the series of parallel
valleys along the right side of the
image were likely cut by arms of the
glacier that have since receded.
All digital information is stored and transmitted in the ones and zeros
computers understand. But when ones and zeros represent more
than words, they become rich content. Rich content includes everything from medical images to product designs. Not only does it
require more storage space, it takes special handling to transmit
securely in clear, continuous streams.
Movies are the richest of rich content.Though most movies
are still shot, shipped, and shown on mm film, a few, like George
Lucas’s “Star Wars: Episode II,” are now being created in digital form.
But as rich content technology races ahead, its impact will be
as significant in banking, heavy industry, government, and healthcare
as in entertainment. EMC’s Content and Information Center Markets
initiative develops and delivers innovative solutions and services for
rich media content.
By , more than half the world’s data will be in rich content formats. How it will be used can only be imagined. But all of it
will have to be stored, managed, and protected.
AS MORE
INFORMATION
IS DIGITIZED
TO BECOME
RICH CONTENT,
THE IMPACT
WILL BE FELT
VIRTUALLY
EVERYWHERE.
GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LE
CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNAT
POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GR
MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COM
INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL
GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE
3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEA
FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO N
DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL
MUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM
TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOB
GLOBAL
CUSTOMER
RELATIONSHIPS
EVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS
TIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES
UPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE
MMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM
TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE
E MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL
RSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL
NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO
SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COM-
M INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL
BE GRUPO PÃO DE AÇÚCAR GE MEDICAL SYSTEMS LEVEL 3 COMMUNICATIONS CLEARSTREAM INTERNATIONAL FINANCIAL TIMES POSCO NEC BIGLOBE GRUPO PÃO DE AÇÚCAR
customers
GE MEDICAL
SYSTEMS
Digital images like CT scans and MRIs are among the most powerful
tools in the physician’s diagnostic arsenal. So powerful that last year
the , hospitals and , diagnostic imaging centers in the
United States each produced about a terabyte’s worth of data.
But managing this information and efficiently getting these
images to the doctors who order them present a unique set of challenges. A year ago, GE Medical Systems (GEMS) formed an application service provider (ASP) business to address those challenges.
“The largest medical centers typically have their own digital
imaging systems,” says GEMS IT General Manager Milton Silva-Craig.
“So they’ve already implemented technologies like PACS (picture
archiving and communications systems).We wanted to make PACS
affordable for smaller hospitals — as well as to give the giants a better
way to archive older images.”
PACS offers advantages at every step in the process, from initial capture to patient treatment.
M I LT O N ,
S I LVA - C R A I G ,
General,
Manager,
GE Medical,
Systems IT,
“With imaging technologies, clinicians
can construct 3-D images, rotate or
zoom in to get a better view, and compare current and past medical images
— all in seconds.”
“Once doctors see the benefits of
this technology, you can't get it away
from them.”
“With PACS technologies,” says Silva-Craig,“clinicians can
construct -D images, rotate or zoom in to get a better view, and compare current and past medical images — all in seconds.With PACS,
digital images don’t get lost, like  percent of all analog films do.
They’re considerably more secure. And the doctor who ordered them
sees them within hours, not days.”
PACS technology makes it possible to “call in” specialized radiologists over the Internet to help with difficult diagnoses, a fastgrowing new field called tele-radiology.
Silva-Craig says GE Medical Systems chose EMC for its ASP
information infrastructure “because we need absolute security and
uptime. EMC was able to help us grow the business quickly. In fact,
we went from design to implementation in about three months.”
GEMS believes Internet delivery of clinical applications such
as PACS will explode over the next few years because it is so efficient.
“Once doctors see the benefits of this technology,” says Silva-Craig,
“you can’t get it away from them.”
LEVEL 3
COMMUNICATIONS
MIKE JONES,
CIO,
Level 3,
Communications,
“We’re bringing the power of silicon
economics to the Internet and
communications industries.”
“Our upgradeable infrastructure is
designed to scale as the amount of
information we’re capturing and analyzing increases. EMC plays a critical
role in maintaining the integrity of
information sent over our network.”
Level  Communications is at the forefront of a telecommunications
shift as dramatic as the leap from the telegraph to the telephone a century ago. But this time, the leap is from telephone lines designed to
carry the human voice to optical Internet Protocol-based networks
designed to carry voice, data, and video simultaneously.
“Level  has constructed what we believe is the world’s only
multiple-conduit, continuously upgradeable, fiber-optic network,”
says CIO Mike Jones.“We’re bringing the power of silicon economics
to the Internet and communications industries. And EMC solutions
are a crucial part of our ability to do that.”
Level ’s global broadband network comprises nearly ,
miles of optical fiber linking metropolitan networks in the United
States and Europe, a transatlantic fiber-optic cable, and  data centers serving cities in the United States, Europe, and Asia.
Level  believes cheap and abundant bandwidth will drive
demand for new Internet-related applications which will fundamentally change the way we work and live.
“Since the beginning,” says Jones,“we’ve focused on enabling
companies to send more information faster, more cost-effectively, and
over greater distances than ever before.To do that, we need information systems that can help us achieve our pricing, performance, and
provisioning objectives.
“Our upgradeable infrastructure is designed to scale as the
amount of information we’re capturing and analyzing increases,” says
Jones.“EMC plays a critical role in maintaining the integrity of information sent over our network.”
CLEARSTREAM
INTERNATIONAL
YVES,
BAGUET,
Managing,
Director,
Te c h n o l o g y,
Clearstream,
International,
“The closer we come to clearing securities transactions in a continuous way,
the less cost and less risk involved,
and the faster we are ready for ‘T
Plus 0’: processing trades on the day
they’re made.”
“For us, it is absolutely essential to have
partners like EMC — partners who
understand our business, are flexible
enough to respond when our business
changes, and will be there for us as
we grow.”
When brokers buy and sell securities, time is literally money. Every
minute required to clear a trade can cost millions.When trades cross
borders, the stakes are even higher.
Luxembourg-based Clearstream International, Europe’s largest
securities clearing house, was formed last year to address those challenges in the new Euro marketplace. Owned jointly by Luxembourg’s
Cedel and Deutsche Boerse, the German stock exchange, Clearstream
International expects to handle  million transactions this year. By
, daily transaction volume could reach  million.
“Our strategy is all about minimizing market risk, improving
market efficiency and reducing cost,” says Yves Baguet, Managing
Director Technology.“The closer we come to clearing securities
transactions in a continuous way, the less cost and less risk involved,
and the faster we are ready for the industry goal of ‘T Plus 0’: processing trades on the day they’re made.”
Clearstream’s business rests on a new IT platform called
Creation,which is designed to handle clearing and settlement of bonds
and equities no matter how large trading volume becomes. At the center of the platform is an EMC E-Infostructure.
“Without information technology, our business could not
exist,” says Baguet.“Our IT infrastructure is what has enabled us to
integrate Deutsche Boerse’s clearing business with our international
business to develop new services and to offer lower prices, while maintaining the quality our customers expect.
“For us, it is absolutely essential to have partners like EMC —
partners who understand our business, are flexible enough to respond
when our business changes, and will be there for us as we grow.”
FINANCIAL
TIMES
For many newspapers, the dawn of the Internet age posed a serious
threat. Financial Times, however, saw only opportunity.
In a few short years, the venerable newspaper has transformed
itself from the UK’s leading business daily into an international media
powerhouse. On the strength of a world-class EMC E-Infostructure,
Financial Times is now embarking on the next phase of its global
expansion plan.
“We had our vision, and it was all based on being able to capture, store, and manipulate information in any place or format anywhere in the world,” says IT Director Alan Murphy, who sits on the
Financial Times board of directors.“Once we can do that, we can
move at the speed of light.That’s the only way to stay ahead of our
customers and the competition.”
With more than  systems in the paper’s editorial production
process alone, FT has a geographically and operationally disparate IT
system. By using EMC information storage hardware and software and
ALAN,
MURPHY,
IT Director,
Financial,
Ti m e s ,
“We have a circulation of 500,000 now,
and we are the only major international
business newspaper gaining readers.”
“We are in the business of creating content and content is expensive to create.
We need to maximize the use of our
content in every way possible. With
our new architecture, EMC can help us
do that.”
Sun servers with Oracle databases, Murphy says, they can now create
a virtual pool of information.
“The data pool will appear completely seamless,” he says.“That
will cut production time and allow us to localize editions around the
world, creating a better vehicle for advertisers to reach focused groups
of readers.We have a circulation of , now, and we are the only
major international business newspaper gaining readers. EMC can play
a big part of that vision.”
Beyond the distinctive salmon-colored newspaper,the Financial
Times Group is now moving onto the Internet with FT.com. Moving
stories,interviews,photos,and other information across different kinds
of media maximizes content to increase revenue, Murphy says.
“We are in the business of creating content.Since creating content is expensive, we need to maximize its use in every way possible.
With our new architecture, EMC can help us do that.”
POSCO
RYOO,
KYEONG-RYUL,
CIO,
POSCO,
“Suddenly, we had to develop ways to
compete in a brand new environment.
That meant making significant
changes to the way we had been
doing business.”
“Our EMC systems’ reliability, availability, and scalability are essential to
handle the explosive growth potential
we face.”
Korea’s Pohang Iron & Steel Co. (Posco) was founded in  as a
state-owned monopoly. Over the years, the company became a cornerstone of Korean industry and eventually the largest steel producer
in the world, supplying high-quality, hot- and cold-rolled steel to some
of the giants of the automotive and ship-building industries.
But by the late s, globalization, new competition, and
the information revolution had converged to change the rules of
their marketplace.
“Suddenly, we had to develop ways to compete in a brand
new environment,” says CIO Ryoo, Kyeong-Ryul.“That meant
making significant changes to the way we had been doing business.”
One of Posco’s first steps was to replace its legacy IT systems
with an EMC E-Infostructure that would provide the foundation for
process innovation.
Posco leveraged its new infrastructure to overhaul its supply chain,
linking more than  facilities via a fiber-optic network so that every
site has access to the same information.The company is also using
EMC systems to speed up implementation of a new Oracle ERP application, which is expected to yield both tighter control of manufacturing processes and dramatic cost savings.When its new ERP system
is complete later this year, Posco will link the ERP system to its Web
site and sell steel by Internet auction.
“In the past we enjoyed a competitive advantage conferred
by our government,” says Ryoo.“Now we have to make ourselves our
customers’ best choice on our own, earning their loyalty with high
quality, low costs, and responsive service. Our EMC systems’ reliability, availability, and scalability are essential to meeting that goal, with
the explosive growth potential we face.”
NEC BIGLOBE
KOJI,
NISHIGAKI,
President,
NEC,
“Today, our real product is information.
That’s why we chose an EMC information infrastructure.”
Hundred-year-old NEC is one of the lynchpins of the Japanese economy and a global leader in semiconductors, networks, and computers.
“In the Internet age,” says NEC President Koji Nishigaki,“our
real product is information.That’s why we chose an EMC information infrastructure. If we are to compete with developing countries and continue to expand our business, we must shift NEC’s
focus toward information.”
NEC entered the services business  years ago when it started
a PC value-added network service.Six years ago,that evolved to Internet
services, and about four years ago, NEC branded its services BIGLOBE.
BIGLOBE is already one of Japan’s largest ISPs. Its . million
subscribers range from individual users to major corporations like
Daiwa Securities, dream.com ( part of -Eleven retail stores), and
Tsutaya video rental stores. By September of , BIGLOBE expects
SABURO,
TAKIZAWA,
Sales,Director,
BIGLOBE,
“We’re going beyond merely being
an ISP. We’re helping our customers
change their business models.”
to have  million customers, putting even heavier demands on its
information infrastructure.
BIGLOBE Sales Director Saburo Takizawa says,“We’re going
beyond merely being an ISP. We’re helping our customers change their
business models. For example, here in Japan, BIGLOBE’s services have
enabled dream.com to sell videos and music online. Customers can
pay for the items through the Internet and then pick them up at their
local -Eleven store.”
NEC President Nishigaki says,“BIGLOBE’s fundamental purpose is to make our clients’ dreams for leveraging the Internet a reality.
The amount of information being created today seems limitless.
Without EMC’s hardware, software, and support we could not do what
we are doing.”
GRUPO PÃO
DE AÇÚCAR
S I LV I O ,
LABAN,
Administrative,
Director,
Grupo Pão de Açúcar,
“In retailing, success is in the details,
and details add up to a lot of stored
information. We need a platform that
will give us what we need no matter how
fast or how large we grow, or how our
business changes. EMC provides us with
that platform.”
For immigrants to Brazil, Rio de Janeiro’s Pão de Açúcar (“sugar loaf ”)
is as symbolic as New York’s Statue of Liberty. So when Portugueseborn Valentim dos Santos Diniz opened a small Sao Paulo candy shop
in , he named it for the icon of his adopted country.
Today Grupo Pão de Açúcar ( pronounced pan de soó ker) is
the largest Brazilian retailer and one of the fastest-growing companies
in Latin America.With more than  stores, Grupo Pão de Açúcar
does business through Eletro electronics stores, Pão de Açúcar and
Barateiro supermarkets, EXTRA hypermarkets, and Internet portal
Amelia.com.br.The company recently formed an alliance with Casino
Group of France.
“In retailing, success requires anticipating trends and staying
well ahead of customers’ expectations,” says Administrative Director
Silvio Laban.
“That’s why some of our stores offer live music, Internet
access, and valet parking. In Japanese and Jewish neighborhoods, we
offer ethnic foods in addition to Brazilian specialties like feijoada. And
if you shop on Amelia.com.br, you can not only shop for groceries
and home appliances, but order flowers, arrange to have dry cleaning
picked up, or get advice on wine.”
If closeness to the customer is what sets Grupo Pão de Açúcar
apart, its information infrastructure is what makes that closeness possible.The company has a highly developed customer knowledge database,
which it mines frequently to anticipate customers’needs.Grupo Pão de
Açúcar also uses the Internet extensively to manage its supply chain.
Grupo Pão de Açúcar has been an EMC customer since ,
and has long used EMC solutions to help increase margins, optimize
business processes, integrate new acquisitions, and consolidate information from all its stores. Last year, the company did a comprehensive survey of every IT option available and decided to migrate all its
data to EMC: about  terabytes worth.
“Success is in the details,” says Laban,“and details add up to a
lot of stored information.We need a reliable,flexible,and scalable information platform that will give us what we need no matter how fast
or how large we grow, or how the business changes. EMC provides us
with that platform.”
FINANCIAL
REVIEW
EMC2 AR_00 P_72
financials
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
22222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
2222222222222222222222222222222222222222222222 0000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
NOTE FROM MANAGEMENT
This 2000 Annual Report to stockholders contains selected financial information including FiveYear Selected Consolidated Financial Data, Condensed Consolidated Statements of Income,
Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows,
and Condensed Consolidated Statements of Comprehensive Income.
Complete Consolidated Financial Statements, including Notes to the Consolidated Statements, as well as Management’s Discussion and Analysis of Financial Condition and Results
of Operations, are presented in the Company’s 2000 Annual Report on Form 10-K.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Stockholders and the Board of Directors of EMC Corporation.
We have audited, in accordance with auditing standards generally accepted in the United
States of America, the consolidated balance sheets of EMC Corporation and its subsidiaries
as of December 31, 2000 and December 31, 1999 and the related consolidated statements
of income, cash flows, stockholders’ equity, and comprehensive income for each of the three
years in the period ended December 31, 2000 (none of which are presented herein); and
in our report, included in the Company’s 2000 Annual Report on Form 10-K, we expressed
an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated
financial statements is fairly stated, in all material respects, in relation to the consolidated
financial statements from which it has been derived.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 22, 2001
S E L E C T E D Q U A R T E R LY F I N A N C I A L D ATA ( U N A U D I T E D )
In thousands, except per share amounts
Revenues
Net income
Net income per weighted average
share, diluted
Q1_00
$1,822,598
$ 331,987
Q2_00
$2,145,927
$ 429,037
Q3_00
Q4_00
$2,283,005 $2,621,286
$ 458,178 $ 562,873
$
$
$
0.15
0.19
0.20
$
0.25
FIVE-YEAR SELECTED CONSOLIDATED FINANCIAL DATA
(1)
For the fiscal year ended
12_31_00
12_31_99
12_31_98
12_31_97
12_31_96
Summary of Operations:
Revenues
$8,872,816 $6,715,610 $5,436,158 $4,487,851 $3,616,746
Operating income (4)
2,256,903 1,241,094
834,267
716,958
539,039
Net income (4)
1,782,075 1,010,570
653,978
587,511
420,080
Net income per weighted
average share, basic (2)
$
0.82 $
0.49 $
0.32 $
0.29 $
0.22
average share, diluted (2),(4) $
0.79 $
0.46 $
0.30 $
0.28 $
0.21
Weighted average shares,
basic (2)
2,164,180 2,061,101 2,030,742 2,002,032 1,878,673
Weighted average shares,
diluted (2)
2,245,203 2,219,065 2,188,430 2,130,969 2,020,318
Balance Sheet Data:
Working capital
Total assets
Long-term obligations (3)
Stockholders’ equity
(1)
(2)
(3)
(4)
$3,986,404 $2,922,481 $2,825,000 $2,581,640 $1,597,486
10,628,342
14,457
7,173,288 5,627,020
686,609
751,646
4,627,936
3,178,101
771,204
339,232
$8,177,209 $4,951,786 $3,728,990 $2,900,941 $1,978,025
The selected consolidated financial data for 1996-1998 includes the effects of the acquisition of Data
General on October 12, 1999, which was accounted for as a pooling-of-interests.
All share and per share amounts have been restated to reflect the stock splits effective November 17, 1997,
May 28, 1999 and June 2, 2000 for all periods presented.
Excludes current portion of long-term debt.
In 1999, EMC incurred charges totaling $223,598 (pre-tax) which consists of restructuring, merger and asset
impairment charges of $208,246 included in operating expenses and other cost of sales charges of
$15,352. Net income for the year ended December 31, 1999, adjusted to exclude the impact of the
charges was $1,180,468 or $0.54 per diluted share. In 1998, EMC incurred charges totaling $135,000
(pre-tax) consisting of $82,400 of restructuring charges and $52,600 of other cost of sales charges related
to asset write downs. Net income for the year ended December 31, 1998 adjusted to exclude the impact of
charges was $788,978 or $0.37 per diluted share.
FIVE-YEAR CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Summary of Operations:
Revenues
Net sales
Services
12_31_00
12_31_99
12_31_98
12_31_97
12_31_96
$7,966,974 $5,983,009 $4,860,838 $4,022,584 $3,164,578
905,842
8,872,816
575,320
465,267
452,168
6,715,610 5,436,158
732,601
4,487,851
3,616,746
2,317,189
1,838,071
295,269
296,337
332,078
263,625
826,357
679,674
Cost and expenses
3,125,908 2,751,360 2,600,405
Cost of sales
Cost of services
603,857
506,885
395,995
Research and development
783,166
572,517
435,344
Selling, general and
administrative
2,102,982 1,435,508 1,087,747
Restructuring, merger
–
208,246
82,400
and other charges
Operating income
2,256,903 1,241,094
834,267
Investment income
206,240
131,911
114,355
Interest expense
(14,604)
(33,490)
(34,786)
Other income (expense), net
(7,341)
17,650
397
Income before income taxes
2,441,198 1,357,165
914,233
Income tax provision
659,123
346,595
260,255
Net income
$1,782,075 $1,010,570 $ 653,978
average share, basic
$
0.82 $
0.49 $
0.32
average share, diluted
$
0.79 $
0.46 $
0.30
See accompanying Notes to Condensed Consolidated Financial Statements.
–
–
716,958
539,039
82,582
41,754
(31,302)
(24,792)
1,082
424
769,320
556,425
181,809
136,345
$ 587,511 $ 420,080
$
0.29 $
0.22
$
0.28 $
0.21
FIVE-YEAR CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
12_31_00
12_31_99
12_31_98
Assets
Cash, cash equivalents and
short-term investments
$ 2,656,952 $1,824,139 $1,817,948
1,625,438 1,292,790
Accounts and notes receivable 2,114,368
Inventories
1,024,964
618,885
620,025
Other assets, including
303,767
251,934
135,252
deferred income taxes
Total current assets
6,100,051
4,320,396 3,866,015
Long-term investments
2,088,379
1,349,599
562,360
Property, plant and
1,510,088
1,023,179
823,160
equipment, net
Intangible and other
assets, including notes
receivable and deferred
income taxes
929,824
480,114
375,485
$10,628,342 $7,173,288 $5,627,020
Total assets
Liabilities and stockholders’
equity
Current liabilities
Long-term obligations
and other noncurrent
liabilities
Stockholders’ equity
Total liabilities and
stockholders’ equity
$ 2,113,647
$1,397,915 $1,041,015
12_31_97
12_31_96
$1,671,828
$ 911,702
1,092,695
904,289
590,791
464,574
92,336
90,470
3,447,650
2,371,035
276,776
113,500
584,622
445,129
318,888
248,437
$4,627,936 $3,178,101
$ 866,010 $ 773,549
337,486
823,587
857,015
860,985
426,527
8,177,209
4,951,786
3,728,990
2,900,941
1,978,025
$10,628,342
$7,173,288 $5,627,020
$4,627,936 $3,178,101
FIVE-YEAR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
In thousands
12_31_00
12_31_99
12_31_98
12_31_97
12_31_96
$ 1,010,570 $
653,978
$ 587,511
$ 420,080
418,022
432,182
292,133
258,601
(115,490)
(290,592)
970,670
589,052
588,490
(819,704)
(502,445)
Cash flows from operating
activities:
Net income
Adjustments to net income
$ 1,782,075
835,163
Changes in assets and
liabilities
(508,582)
(56,957)
(90,191)
Net cash provided by
operating activities
2,108,656
1,371,635
(1,842,418)
(1,170,938)
Net cash used by investing
activities
(1,295,535)
Net cash provided by
financing activities
611,657
73,245
66,409
742,365
13,747
Effect of exchange rate
changes on cash
(4,083)
1
(2,020)
877,895
273,942
(258,456)
1,109,409
835,466
(8,039)
(1,487)
Net increase (decrease) in
cash and cash equivalents
511,713
99,792
1,095,942
592,268
493,963
835,466
$1,095,942
$ 592,268
Cash and cash equivalents
at beginning of period
Cash and cash equivalents
at end of period
$ 1,983,221
$ 1,109,409 $
FIVE-YEAR CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
In thousands
Net income
12_31_00
12_31_99
12_31_98
12_31_97
12_31_96
$1,782,075 $1,010,570
$653,978
$587,511
$420,080
Other comprehensive
income/(loss)
Comprehensive income
28,651
(26,643)
$1,810,726 $ 983,927
(1,837)
$652,141
(15,148)
$572,363
7,441
$427,521
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying condensed consolidated financial statements as of December 31, 2000,
December 31, 1999, December 31, 1998, December 31, 1997, and December 31, 1996
and for each of the five years in the period ended December 31, 2000 are derived from the
consolidated financial statements of EMC. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and
accompanying notes included in the EMC Annual Report on Form 10-K.
The accompanying condensed consolidated financial statements for the fiscal year
ended December 31, 2000 reflect the acquisition of Data General Corporation on October 12, 1999,
which was accounted for as a pooling-of-interests. All share and per share amounts have been
restated to reflect the two-for-one stock splits effective November 17, 1997, May 28, 1999,
and June 2, 2000 for all periods presented.
directory
GLOBAL OFFICES
CORPORATE
HEADQUARTERS
INTERNATIONAL
SALES OFFICES
Hopkinton, MA U.S.A.
01748-9103
ARGENTINA
HONG KONG
SINGAPORE
Buenos Aires
Taikooshing
Singapore
AUSTRALIA
IRELAND
SOUTH AFRICA
Adelaide
Brisbane
Canberra
Melbourne
North Sydney
Perth
Dublin
Cape Town
Durban
Johannesburg
Pretoria
RESEARCH AND
DEVELOPMENT FACILITIES
Alexandria, VA
Bellevue, WA
Cambridge, MA
Colorado Springs, CO
Denver, CO
Hopkinton, MA
Kawasaki, Japan
La Celle St. Cloud,France
Needham, MA
Raleigh-Durham, NC
Salem, MA
Seattle, WA
Southborough, MA
South Plainfield, NJ
Sunnyvale, CA
Tel Aviv, Israel
Westborough, MA
MANUFACTURING
FACILITIES
Apex, NC
Ballincollig, Cork, Ireland
Franklin, MA
Hopkinton, MA
ISRAEL
Tel Aviv
ITALY
Zaventem
Bologna
Brescia
Milan
Padova
Rome
Turin
BRAZIL
JAPAN
AUSTRIA
Vienna
BELGIUM
Rio de Janeiro
São Paulo
CANADA
Calgary, Alberta
Mississauga, Ontario
Ottawa, Ontario
Ville St. Laurent, Quebec
DENMARK
Naerum
FINLAND
Espoo
FRANCE
La Celle St. Cloud
Lille
Lyon
Strasbourg
Toulouse
GERMANY
Berlin
Dresden
Duesseldorf
Hamburg
Hannover
Munich
Nuernberg
Schwalbach
Stuttgart
Fukuoka
Kyushu
Nagoya
Osaka
Shizuoka
Tokyo
MALAYSIA
Kuala Lumpur
NETHERLANDS
Nieuwegein
Rijswijk
NEW ZEALAND
Auckland
Wellington
NORWAY
Oslo
PEOPLE’S REPUBLIC
OF CHINA
Beijing
Guangzhou
Shanghai
PUERTO RICO
Rio Grande
Trujillo Alto
SCOTLAND
Edinburgh
SOUTH KOREA
Seoul
SPAIN
Madrid
SWEDEN
Solna
SWITZERLAND
Bern
Geneva
Schlieren
TAIWAN
Taipei
THAILAND
Bangkok
UNITED KINGDOM
Derbyshire
Glos
Haydock
Kingswood
VENEZUELA
Caracas
UNITED STATES SALES
AND SERVICE LOCATIONS
ALABAMA
LOUISIANA
OKLAHOMA
Birmingham
New Orleans
ARKANSAS
MASSACHUSETTS
Oklahoma City
Tulsa
Conway
Fayetteville
Little Rock
Newton
ARIZONA
Phoenix
CALIFORNIA
El Segundo
Encino
Irvine
Pleasanton
Sacramento
San Diego
San Francisco
COLORADO
Colorado Springs
Englewood
MARYLAND
Bethesda
Linthicum
MICHIGAN
Novi
MINNESOTA
SOUTH CAROLINA
St. Louis
Clinton
Columbia
MISSISSIPPI
TENNESSEE
Horn Lake
Olive Branch
NORTH CAROLINA
FLORIDA
NEBRASKA
GEORGIA
Alpharetta
Macon
IDAHO
Boise
ILLINOIS
Chicago
Darien
INDIANA
Indianapolis
KANSAS
Overland Park
Witchita
Blue Bell
Camp Hill
Erie
New Freedom
Pittsburgh
MISSOURI
Charlotte
Greensboro
Raleigh
Ft. Lauderdale
Jacksonville
Maitland
Miami
Tallahassee
Tampa
PENNSYLVANIA
Edina
Rocky Hill
CONNECTICUT
OREGON
Portland
Chattanooga
Germantown
Memphis
Nashville
TEXAS
Omaha
Austin
Dallas
Houston
San Antonio
NEW JERSEY
UTAH
Murray Hill
Salt Lake City
NEVADA
VIRGINIA
Las Vegas
Reno
Richmond
Vienna (DC)
NEW YORK
WASHINGTON
Albany
Fayetteville
Long Island
New York City
Pittsford
Bellevue
OHIO
Cincinnati
Columbus
Dayton
Independence
WISCONSIN
Greenbay
Madison
Milwaukee
Oshkosh
EXECUTIVE OFFICERS, OFFICERS AND DIRECTORS
EMC CORPORATION
EXECUTIVE OFFICERS
SENIOR OFFICERS
OFFICERS
Executive Chairman
David Ellard
Senior Vice President
John F. Albanese
Vice President
John P. Hanlon
Vice President
Joseph M. Tucci
President and Chief
Executive Officer
Brian E. Gallagher
Mitchell Breen
Vice President
Thomas P. Heiser
Vice President
Alan G. Jones
Jeffrey P. Casale
Vice President
Scott Hoag
Vice President
Richard P. Lehane
Denis G. Cashman
Vice President
Ishay Kedem
Vice President
Jack T. Mollen
Scott A. Clark
Vice President
Doron Kempel
Vice President
William K. Nelson
Michael J. Cody
Vice President
Michael P. Kerouac
Vice President
Erez Ofer
Leo V. Colborne
Vice President
Thomas E. Knight
Vice President
Mark A. Quigley
William J. Dacier
Vice President
Karen F. Kupferberg
Vice President
James B. Rothnie
James R. Donovan
Vice President
Alfred Lanzetta
Vice President
William F. Scannell
Rebek J. Duhaime
Vice President
Jeffrey M. Leger
Vice President
Joel Schwartz
Michael A. Feldstein
Vice President
Mark A. Link
Vice President
Joseph F. Walton
Bryan K. Fontaine
Vice President
Charles S.F. Loewy
Vice President
Mark R. Fredrickson
Vice President
Joseph J. Mastaj
Vice President
John P. Garrahan
Vice President
Gerard McAndrews
Vice President
Jeffrey A. Goldberg
Vice President
Eamonn M. McGrath
Vice President
Kurt M. Grazewski
Vice President
William V. Monagle, Jr.
Vice President
Kenneth T. Gresham
Vice President
Robin A. Monleon
Vice President
Leonard I. Hafetz
Vice President
Erin M. Motameni
Vice President
Frank M. Hauck
Executive Vice
President
Products and
Offerings
Michael A. Ruffolo
Executive Vice
President
Global Sales, Services
and Marketing
Paul T. Dacier
General Counsel
David A. Donatelli
Senior Vice President,
New Business
Development
William J. Teuber, Jr.
Chief Financial Officer
DIRECTORS
INDEPENDENT
ACCOUNTANTS
Rona J. Newmark
Vice President
Gal Sne
Vice President
Executive Chairman
PricewaterhouseCoopers LLP
Boston, MA
Glennon L. Paredes
Vice President
Robert C. Solomon
Vice President
TRANSFER AGENT
AND REGISTRAR
Michael P. Parise
Vice President
Ralph Specht
Vice President
Richard J. Egan
Founder and Chairman
Emeritus
James O. Pearson
Vice President
Gary H. Stein
Vice President
Polly C. Pearson
Vice President
Paul Suffredini
Vice President
Jon D. Peirce
Vice President
Donald S. Swatik
Vice President
Veronica A. Perdisatt
Vice President
Percy Tzelnic
Vice President
W. Paul Fitzgerald
William Raftery
Vice President
William B. Walsh
Vice President
Bruce G. Reed
Vice President
Donald R. Watson
Vice President
Joseph F. Oliveri
Executive Vice
President
Jaco Electronics, Inc.
Walter L. Reitz
Vice President
Patrick Weber
Vice President
Fidelma Russo
Vice President
Steven Winters
Vice President
Roy T. Sanford
Vice President
Rick F. Wojcik
Vice President
Rafiq A. Sayed
Vice President
William J. Wolak
Vice President
Gil Shapira
Vice President
Richard Woodman
Vice President
Irina Simmons
Vice President and
Treasurer
Moshe Yanai
Vice President
Ronald M. Slate
Vice President
Sarah Zohn
Vice President
Joseph M. Tucci
President and Chief
Executive Officer
Michael J. Cronin
President
Chief Executive Officer
Cognition Corporation
John R. Egan
Alfred M. Zeien
State Street Bank
& Trust Company
c/o Equiserve
P.O. Box 8200
Boston, MA 02266-8200
Shareholder Inquiries
1.800.426.5523
FORM 10-K
EMC Corporation is mailing
or making available electronically a copy of its Annual
Report on Form 10-K to
each stockholder. Additional
copies can be obtained by
calling EMC’s toll-free
investor hotline at
877.362.6973 or by
accessing www.emc.com/ir
ANNUAL MEETING
Wednesday, May 9, 2001
10a.m.
EMC Southborough Facility
4 Coslin Drive
Southborough, MA 01745
COMMON STOCK
EMC common stock is
traded on the New York
Stock Exchange under the
symbol EMC. EMC had
approximately 13,275
stockholders of record as
of January 31, 2001.
This annual report contains certain forward-looking statements within the meaning of the Federal
securities laws. EMC’s future results may differ materially from its current results and 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) component quality and availability; (ii) rapid technological and
market change and the transition to new products; (iii) competitive factors, including but not limited
to pricing pressures, in the computer storage and server markets; (iv) the relative and varying rates of
product price and component cost declines; (v) economic trends in various geographic markets and
fluctuating currency exchange rates; (vi) the ability to attract and retain highly qualified employees;
(vii) the uneven pattern of quarterly sales; (viii) risks associated with strategic investments and
acquisitions; (ix) the Company's ability to execute on its plans; and (x) 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.
EMC2, EMC, Symmetrix, AViiON, CLARiiON, and Navisphere are registered trademarks of
EMC Corporation. EMC Enterprise Storage, EMC Enterprise Storage Network, EMC E-Infostructure
Developers Program, EMC Proven, Access Logix, Celerra, Connectrix, ControlCenter, CopyCross, CopyPoint,
E-Infostructure, HighRoad, InfoMover, PowerPath, SnapView, SRDF, TimeFinder, Universal Data Tone,
Volume Logix, xSPerience, EDM, Enginuity, FarPoint, The EMC Orb, and where information lives are
trademarks of EMC Corporation. Other trademarks are the property of their respective owners.
Special thanks to Beth Knutsen and Reuben Costa Filho who have agreed to be featured
on page 34 of this report.
Corporate Headquarters
Hopkinton, Massachusetts U.S.A.
01748-9103
(508) 435-1000
www.EMC.com

2000 - EMC

Transcrição

Documentos relacionados

PDG REALTY S/A EMPREENDIMENTOS E PARTICIPAÇÕES CNPJ

to the Mail Order

Enrique Miguel Iglesias Machel Tello

- Richmond

Inspired by tradition.

RESUMO O Cabaret Macunaíma: cartografia da Epistemologia

Junho 2013 Português English → Kantar Retail

Value of color Doppler ultrasonography and radiography for the

godofredo v. cruz

Quotes - Intel Simplifies the Data Center