By Rik Turner
EMC Corp expects the Clariion storage business it bought as part of Data General in August (CI No 3,721) to contribute revenue of $600m to its top line in 2000, representing an increase of 50% on Clariion’s $400m expected revenue this year, says EMC CEO Michael Ruettgers.
He said that not only will revenue at Clariion grow dramatically next year, but the source of its will be markedly different. Whereas this year Clariion sales will be 20% direct and 80% through OEM partners, in 2000 the reverse will be true, he said, with 80% of sales being direct, thanks to fact that EMC’s huge salesforce will be offering Clariion kit for the full 12 months.
As for the Aviion server business acquired along with Clariion, Ruettgers said it will show revenues of about $1bn this year, decreasing to $700m in 2000 as less profitable areas of that business are pared off. EMC is, of course, contractually tied to hold onto the Aviion business through late 2001, but the decisive moment for its future will in fact be at the end of next year, explained Ruettgers. That’s when we’ll decide whether to scale it down or grow it, at which point sale could also become an option, even though any such transaction could only go through after August the following year.
An indication that Ruettgers is clearly keeping that option open is given by the treatment the service staff at Data General is receiving under EMC. The latter’s VP for global customer service, Frank Hauck, said DG service engineers who were working on the so-called Open Clariion business (sales not attached to Aviion service) are being integrated into EMC’s service division. They are also being indoctrinated into its philosophy of operating as a tool for guaranteeing customer satisfaction rather than as a separate profit center. That said, he added, the bulk of non-Aviion sales of Clariion were in any case through OEM deals, in which case it was the partner that provided the service.
He said that the Aviion division did, however, already have its own service engineers supporting the Clariion arrays that went out as part of a server sale, and those people will remain separate from EMC’s service staff.
