EMC division posts 60% backup and recovery jump in Q1

- Tuesday, April 5, 2011

EMC division posts 60% backup and recovery jump in Q1

The Southern Cone division of US storage solutions supplier EMC (NYSE: EMC) saw backup and recovery sales jump 60% year-over-year during the first three months of 2011, the division's backup and recovery manager, Enrique Forbes, told BNamericas without providing hard figures.

The division - which includes Chile, Argentina, Peru, Bolivia, Uruguay and Paraguay - is coming off wins including the Uruguayan unit of Citibank (NYSE: C) and the Argentine division of US oil major Exxon Mobil (NYSE: XOM), as well as a slew of SMEs.

Particularly strong deduplication sales also left their mark on first quarter results, according to Forbes.

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"Companies have resolved issues related to primary storage, which is the information that is saved and permanently accessed through their information systems," he said. "The challenge is what to do to protect that information."

EMC Southern Cone's backup and recovery pipeline includes deals with financial, mining, pharmaceutical and food producers, according to the executive, who added that the division is looking to maintain 60% growth throughout the rest of the year.

Chile and Argentina represent the most significant markets, though Forbes also underscored advances in Peru.

Other key accounts include Chilean state copper miner Codelco, Argentine oil firm YPF and Peru's biggest bank, Banco de Crédito del Peru (BCP).

LONG-TERM PLANS

EMC currently controls 25-30% of the backup and recovery market in the six countries that make up its Southern Cone division, Forbes said, basing his information on internal figures and also statistics from external IT consultancies.

The storage giant plans to run its market share up to 35% by 2014, with growth pinned on factors such as an expanded channel network in Argentina and Chile.

In terms of competition, "there aren't any dominant players," he said. "There is a large number of brands, but we aren't targeting any one in specific" to up the competition.

Globally, EMC saw net profits increase 75% last year, reaching US$1.9bn. Overall revenues during the same period grew 21%, to US$17bn.